California, Federal Government Battle Over Hospice Fraud, as Victims Lose Coverage

California and the federal government are engaged in a battle over hospice fraud, which has led to victims losing coverage and millions in taxpayer dollars being embezzled by scammers. Linda Henry, a 71-year-old woman in Southern California, was enrolled in hospice care in 2024 despite her good health and occasional checkups. She became a victim of fraudulent hospice providers, a problem that has become increasingly prevalent in California due to weak government oversight.

Fraudsters have created fake hospices, tricked individuals into enrolling, and stolen identities to bill Medicare for services. California has been a primary focus of the Trump administration's crackdown on fraud in federally-funded health programs, with over 1,000 California hospices removed from Medicare since early 2025. Federal officials estimate that LA County alone accounts for $3.5 billion in fraudulent hospice claims.

California has taken steps to address the issue, revoking nearly 500 licenses since implementing a moratorium on new hospices in 2021 and adopting emergency regulations in June 2025. These regulations set stricter criteria for approving new licenses. Despite these efforts, vulnerable seniors are still being left without essential care, as Medicare will not pay for additional medical treatment once someone enrolls in hospice.

Advocates urge state and federal cooperation to combat the widespread fraud in the hospice industry, but there is no clear estimate of how many people have been affected. In April 2025, federal prosecutors made arrests in five cases of hospice fraud in the LA area, and California Attorney General Rob Bonta announced the arrest of 21 individuals involved in a multimillion-dollar scheme using stolen identities to charge for hospice services.

Bonta has filed over 100 hospice-related criminal cases and secured more than 50 convictions since 2021.