Dr. Mehmet Oz vows to decertify hundreds of fraudulent hospices that have been stealing billions from Medicare, delivering a long-overdue win for taxpayers drained by years of government waste under lax oversight.
Story Highlights
- CMS Administrator Dr. Oz pledges to strip billing rights from 900-1,000 fraudulent hospices, targeting half in California, where over 700 in LA County raised fraud flags.
- Fraud costs taxpayers $198.1 million annually, with bad actors using identity theft and kickbacks to bill for non-terminally ill patients.
- Oz’s “boots on the ground” visits to California and Nevada signal aggressive enforcement by the Trump administration against Medicare abuse.
- California revoked 280 licenses, but Oz questions state cooperation amid disproportionate fraud in LA County.
- Legitimate providers and victims support a crackdown to protect end-of-life care and taxpayer dollars.
Oz Targets Hospice Fraud Hotspots
Dr. Mehmet Oz, the CMS administrator, is committed to decertifying fraudulent hospices after a CBS News investigation exposed that over 700 of 1,800 LA County providers triggered state fraud alerts.
These operations billed Medicare for non-terminally ill patients using stolen identities and kickbacks. Oz stated, “If they steal the money, they’ll steal your health, they’ll steal your life.”
He plans to cut billing rights for illegitimate providers nationwide, focusing on California as an outlier compared to 49 other states. This action protects Medicare funds meant for dignified end-of-life care.
California’s Fraud Surge Under Scrutiny
Hospice fraud exploded post-2020 in high-density states like California, Arizona, Nevada, and Texas due to lax oversight. A 2023 HHS OIG report estimated $198.1 million in nationwide suspected fraud.
LA County hosts disproportionate numbers of providers, many clustered at a single address, inflating national billing data. California’s Hospice Fraud Task Force revoked about 280 licenses and made arrests, yet Oz identifies 900-1,000 suspects for CMS action.
Victims like Lynn Ianni suffered identity theft, blocking their legitimate access to care. Federal intervention addresses state shortcomings.
๐๐ซ. ๐๐ณ ๐ฉ๐ฅ๐๐๐ ๐๐ฌ ๐ญ๐จ ๐ญ๐๐๐ค๐ฅ๐ ๐ก๐จ๐ฌ๐ฉ๐ข๐๐ ๐๐ซ๐๐ฎ๐: "๐๐จ ๐ง๐จ๐ญ ๐ฌ๐ญ๐๐๐ฅ ๐๐ซ๐จ๐ฆ ๐ญ๐ก๐ ๐๐ฆ๐๐ซ๐ข๐๐๐ง ๐ฉ๐๐จ๐ฉ๐ฅ๐": Dr. Mehmet Oz, administrator for the Centers for Medicare and Medicaid Services (CMS), has pledged to combat hospice fraud, particularlyโฆ pic.twitter.com/IwBB48BfBp
— Ranked News (@RankedNews) March 14, 2026
Trump Administration’s Enforcement Push
In January 2026, Oz toured California fraud hotspots with LA prosecutor Bill Essayli and held roundtables in Nevada with CMS officials, including COO Kimberly Brant. These “boots on the ground” efforts use checklists to trigger on-site visits when red flags, such as physician kickbacks, arise.
CMS expanded enhanced oversight to new hospices in six states, mandating pre-payment claim reviews.
Oz pledged mass decertifications, stating, “Hold me to it… take away their ability to bill us.” This aligns with the Trump administration’s priorities to safeguard taxpayer dollars from abuse in government programs.
Governor Gavin Newsom’s office defends state efforts and welcomes federal partnership, though Oz expresses skepticism on cooperation. Industry groups like LeadingAge and the National Alliance for Care at Home advocate targeted enforcement to remove bad actors without harming legitimate operations.
Impacts on Taxpayers and Patients
Decertifications will disrupt fraudulent billing, saving over $198 million yearly and correcting skewed Medicare payments. Short-term risks include care gaps for identity theft victims, but long-term gains restore program trust and deter exploitation. Terminally ill patients gain priority access, while LA County residents benefit from reduced abuse density.
Legitimate hospices welcome a level playing field, as fraud inflates costs and undermines the conservative values of fiscal responsibility and individual dignity in end-of-life care. Political tensions between federal and state authorities highlight the need for strong CMS authority.
Expert Mollie Gurian of LeadingAge notes CMS responds to ground-level issues like stolen Medicare numbers. Congressional lawmakers urge continued action post-Oz visits. This crackdown exemplifies efficient government protecting American families from waste.
Sources:
Dr. Oz pledges to tackle hospice fraud: “Do not steal from the American people”
Boots on the Ground: Dr. Oz, CMS Leaders Visit Fraud-Ridden States
Dr. Oz hospice fraud interview (video)
