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Justice Department recovers $500 million, targets fraudulent hospice claims across US

The Justice Department launched a new national fraud enforcement division this week, announcing the recovery of $500 million in illicit funds across nationwide health care and hospice schemes.
A recent CBS News investigation found 742 licensed hospices in Los Angeles County with fraud indicators, representing about 42% of total facilities, while one California doctor filed nearly 2,800 claims in 2024 compared to an average of 140.
The FBI arrested a California couple accused of billing Medicare for more than $7 million, with investigators citing the couple's patients' 97% survival rate after five years as a major red flag for potential fraud.
CMS Administrator Mehmet Oz criticized California's hospice oversight, while California Attorney General Rob Bonta defended the state's efforts, noting the California DOJ has investigated healthcare fraud since 1979.
Acting Attorney General Todd Blanche issued a warning on Tuesday to fraudsters, stating the department will investigate and charge those seeking to exploit federal programs for illegal gain.

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