{"id":28743,"date":"2026-05-18T09:20:10","date_gmt":"2026-05-18T09:20:10","guid":{"rendered":"https:\/\/biblelon.com\/?p=28743"},"modified":"2026-05-18T09:20:10","modified_gmt":"2026-05-18T09:20:10","slug":"1-3-billion-frozen-in-sweeping-california-hospice-fraud-crackdown","status":"publish","type":"post","link":"https:\/\/biblelon.com\/?p=28743","title":{"rendered":"$1.3 Billion Frozen in Sweeping California Hospice Fraud Crackdown"},"content":{"rendered":"

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More than $1.3 billion in federal health care reimbursements have been halted, and 800 hospices have been suspended amid a sweeping crackdown on California hospice fraud.\n<\/p>\n

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These efforts have been led by Vice President JD Vance and Centers for Medicare & Medicaid Services Administrator Dr. Mehmet Oz, who President Donald Trump selected to lead the Task Force to Eliminate Fraud.\n<\/p>\n

Oz cited estimates suggesting roughly one-third of the nation\u2019s hospice providers are based in Los Angeles\u2014even though it only holds about 2.5% of the nation\u2019s elderly population.\n<\/p>\n

\u201cAsk yourself how that\u2019s possible \u2026 it\u2019s not.\u201d\n<\/p>\n

Oz further claimed \u201cat least half\u201d of the hospices in Los Angeles are frauds.\n<\/p>\n

\u201cWe believe that at least half of the hospices in the entire area around Los Angeles are fraudulent. \u2026 Today we announce 800 of those hospices have been suspended. 800 hospices that last year charged the federal taxpayer $1.4 billion will no longer be paid.\u201d\n<\/p>\n

The task force effort has not gone without criticism. In January 2026, California Gov. Gavin Newsom called Oz\u2019s efforts \u201cpurely political\u201d and stressed that his team has been dealing with the fraud \u201cfor years.\u201d\n<\/p>\n

\u201cHospice? We\u2019ve been after that for years and years before Oz was even on the scene. This is purely political.\u201d\n<\/p>\n

In 2022, California imposed a moratorium on new hospice licenses after\u00a0state auditors warned\u00a0that a lack of oversight allowed questionable hospices into the market.\n<\/p>\n

According to a report published by\u00a0Newsom\u00a0in March 2026, the California Department of Public Health revoked 280 hospice licenses in the past two years.\n<\/p>\n

Despite Newsom\u2019s efforts, Vance argues that previous enforcement efforts failed to stop billions in fraudulent billing.\n<\/p>\n

\u201cThe Task Force is preventing fraud before taxpayer money leaves the federal government. Agencies will now pay only when they are confident that a payment is legitimate and lawful.\u201d\n<\/p>\n

Vance shared the announcement in a post on X.\n<\/p>\n

Alongside aggressive prosecution, the Task Force is preventing fraud before taxpayer money leaves the federal government. Agencies will now pay only when they are confident that a payment is legitimate and lawful.\n<\/p>\n

As a result, Trump administration agencies are now establishing\u2026\n<\/p>\n

\u2014 JD Vance (@JDVance) May 13, 2026<\/a><\/p>\n

The administration says the payment-suspension model used in California could soon expand to other health care programs nationwide as the administration intensifies its anti-fraud efforts.\n<\/p>\n

What do you think about this major crackdown on hospice fraud? Share your thoughts and prayers below.<\/h4>\n

This article was originally published at The Daily Signal. Photo Credit: Gage Skidmore \u2013 https:\/\/www.flickr.com\/photos\/gageskidmore\/55238098217\/, CC BY-SA 4.0, https:\/\/commons.wikimedia.org\/w\/index.php?curid=190824799.<\/em>
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