CMS chief blames California unions for profiting from Medicaid fraud scheme

CMS Administrator Dr. Mehmet Oz charged that California’s most influential labor groups are the primary beneficiaries of a Medicaid fraud scheme, using the In-Home Supportive Services program to boost their dues and political contributions. He pointed to unions such as SEIU Local 2015, representing over 500,000 long-term care workers, and United Domestic Workers, covering more than 200,000 home-care providers, as key players.

Oz cited the federal government’s decision to defer about $867 million in Medicaid payments as a response to fraud concerns, while noting that the deferrals were not directly tied to alleged union coercion. He referenced complaints of caregivers being forced to sign union cards, forged signatures, and dues collected despite opt-out requests, which a senior law-enforcement source said are under DOJ investigation. Governor Gavin Newsom dismissed the fraud allegations as “pure politics” and said his administration is cooperating with federal authorities. CMS declined to provide details on the evidence or any DOJ referrals.