California and federal agencies clash over widespread hospice fraud harming seniors

A surge of hospice fraud in California has triggered a coordinated crackdown by federal prosecutors and state regulators, after scammers used fake providers and stolen Medicare numbers to file billions in false claims. Since early 2025, more than 1,000 California hospices have been stripped of Medicare eligibility, and Los Angeles County alone is linked to an estimated $3.5 billion in fraudulent billing. California responded by revoking almost 500 licenses, halting new hospice approvals in 2021, and adopting emergency regulations in June to tighten licensing criteria.

Federal actions include arrests in multiple Los Angeles cases and a recent sweep that netted 21 suspects in a multimillion-dollar scheme, with over 100 hospice-related criminal cases filed since 2021. Victims like 71-year-old Linda Henry discovered they had been enrolled in hospice without need, causing denied medical services and postponed care until Medicare recognized the fraud eight months later. Officials stress that the abuse not only drains taxpayer funds but also threatens access for genuine terminal patients.