Fraudsters stole $600 million from Medicare by enrolling healthy seniors in hospice, locking them out of real care while taxpayers footed the bill.
Story Snapshot
- 447 hospices suspended in LA County, targeting $600 million in scams.
- 742 of 1,800 LA hospices show fraud red flags, 42% of the total.
- Operation “Never Say Die” arrests eight for $50 million fraud scheme.
- Capitol Hill hearing features victim testimony on stolen Medicare numbers.
- LA County accounts for 18% of U.S. hospice billing amid a 1,500% surge in providers.
Hospice Fraud Explodes in Los Angeles County
Los Angeles County hospice providers surged 1,500% since 2010. California State Auditor reported red flags in 2022: providers sharing addresses, low patient counts, patients discharged alive after terminal diagnoses, excessive billing, and shared staff.
California Attorney General Rob Bonta called it an epidemic. Fraudsters exploited Medicare’s direct billing for end-of-life care, enrolling ineligible patients. Individuals abroad obtained licenses easily. This created a perfect storm for scams preying on vulnerable seniors.
Capitol Hill Hearing Demands Accountability
House Ways and Means Committee Chairman Jason Smith opened the April 2026 hearing: “The American people are demanding answers about the theft of their tax dollars.”
Bipartisan lawmakers heard from victims and experts. Dr. Lynn Ianni testified that fraudsters stole her Medicare number, barring her from care for months.
Sheila Clark of the California Hospice and Palliative Care Association described empty offices with piles of mail as “ground zero.” Smith blamed weak oversight in Democrat-led states like California.
Federal Crackdown Targets Massive Schemes
Vice President JD Vance’s Task Force to Eliminate Fraud suspended 447 LA-area hospices, aiming at $600 million in bogus spending. Operation “Never Say Die” arrested eight: nurses, a chiropractor, and a psychologist, charged with $50 million fraud.
Minerd’s Topanga Hospice billed $9.1 million, paid $8.5 million. The Gills claimed $5.2 million, received $4 million. Evelyn Tindimobuna’s Comfort Choice sought $3.8 million, got $3.4 million. U.S. Attorney’s Office coordinates prosecutions.
Hospice fraud hearing exposes toll of suspected scams: "The American people are demanding answers." https://t.co/xRmb9nfGLR
— CBS News (@CBSNews) April 22, 2026
California’s Oversight Failures Under Scrutiny
Governor Gavin Newsom’s administration faces probes from House Oversight Chairman James Comer for enabling fraud through lax controls. Departments of Public Health, Social Services, and Health Care Services drew criticism.
State auditor flagged issues years ago, yet providers multiplied. Bonta acknowledged the epidemic but faced questions on weak enforcement.
CBS News’ 2024 analysis found 742 LA hospices with fraud indicators, accounting for 42% of the total. LA represents $3.5 billion in fraud, 18% of national billing. Victims suffer: fraudulent enrollment blocks other Medicare services. Taxpayers lose millions, raising premiums.
Legitimate providers face stigma. The Justice Department recovered $500 million nationwide. Suspensions risk disrupting real care, but fraud’s toll demands action. Reforms loom: stricter licenses, checks, and audits.
Sources:
Hospice fraud hearing exposes toll of suspected scams
8 Arrested in Health Care Fraud Takedown, Including Owners of Hospices that Billed Taxpayers
House lawmakers hold hearing on Medicare fraud, victims share testimony
House lawmakers hold hearing on Medicare fraud, victims share testimony
Justice Department recovers $500 million, targets fraudulent hospice claims across US
