CMS Suspends 800 California Providers in $1 Billion Medicare Fraud Crackdown
Updated
Updated · Fox News · May 17
CMS Suspends 800 California Providers in $1 Billion Medicare Fraud Crackdown
13 articles · Updated · Fox News · May 17
800 hospice and home health providers in California have been suspended after CMS said foreign-linked criminal networks siphoned more than $1 billion from Medicare.
Los Angeles was identified as the main hotspot, with Oz saying the city accounts for nearly one-third of U.S. hospice providers and that officials believe about half there are not legitimate.
More than $1 billion in federal payments was also deferred in the latest quarter of audits as the Trump administration widened scrutiny of hospice, Medicaid and medical-equipment billing.
Oz said removing fraud, waste and abuse could extend the Medicare Trust Fund's life by roughly 2 times, while officials also flagged concerns in New York, Maine and Florida.
With 800 providers suspended, how will officials ensure patients don't lose access to critical end-of-life care?
How will authorities dismantle the foreign criminal networks behind this fraud scheme targeting American seniors?
What new technologies will prevent these billion-dollar scams before taxpayer money is ever paid out?
$1.3 Billion Medicaid Freeze: Trump Administration’s 2026 Crackdown on California Sparks Political and Healthcare Crisis
Overview
In May 2026, the Trump administration launched a major crackdown on healthcare fraud, focusing on blue states like California by deferring over $1 billion in Medicaid funding. This move targeted vital programs that help seniors and people with disabilities stay out of nursing homes, raising strong criticism from California officials who saw it as politically motivated. Governor Newsom’s office publicly condemned Vice President JD Vance and Dr. Mehmet Oz for their roles in the crackdown, highlighting the significant impact on vulnerable populations and fueling a heated debate over the true intent and consequences of the federal action.