A massive $50 million health care fraud scheme has been uncovered in the Los Angeles area, leading to the arrest of eight people in a federal crackdown. Investigators say several hospice centers billed Medicare for patients who were not terminally ill and did not qualify for hospice care.
According to the U.S. Attorney's Office, some suspects allegedly submitted millions of dollars in fraudulent claims. In one case, a hospice owner reportedly billed more than $9 million to Medicare and received over $8.5 million in payments.
Authorities also revealed that some individuals were offered $300 per month just to enroll in hospice services they didn’t need. The case is part of a broader anti-fraud initiative launched under the administration of Donald Trump, with a national task force led by Vice President JD Vance.
Meanwhile, Gavin Newsom says the state has already taken aggressive steps to shut down fraudulent hospice providers. Federal officials warn the investigation is ongoing, and more reviews could follow.
