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California Launches Major Fraud Crackdown on Healthcare Programs

1/10/2026

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Summary

Story summary

Federal officials announced a California crackdown on fraud tied to foreign actors exploiting healthcare programs.
Bill Essayli, a U.S. attorney, highlighted bogus hospice providers in Los Angeles County.
Dr. Mehmet Oz from the Centers for Medicare & Medicaid Services cited $3.5 billion in fraudulent hospice billing.
California also faced a freeze on $10 billion in federal child-care funding due to fraud concerns.

History

Historical Context

The Medicare Fraud Prevention Act of 2009 aimed to combat healthcare fraud, recovering $2.5 billion that year. This legislation followed a history of fraud cases, including the 2011 crackdown that charged 111 defendants across nine cities. Today, California's renewed efforts reflect ongoing challenges, as federal officials target schemes exploiting healthcare programs, emphasizing the need for vigilance and reform to protect taxpayer funds.

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Story summary

Federal officials announced a California crackdown on fraud tied to foreign actors exploiting healthcare programs.
Bill Essayli, a U.S. attorney, highlighted bogus hospice providers in Los Angeles County.
Dr. Mehmet Oz from the Centers for Medicare & Medicaid Services cited $3.5 billion in fraudulent hospice billing.
California also faced a freeze on $10 billion in federal child-care funding due to fraud concerns.

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