Thinknews
Feb 25, 2026

Congress Demands Action on “Staggering” California Fraud Scheme

A coalition of senior House Republicans is demanding answers from the Department of Health and Human Services Office of Inspector General (HHS OIG) following revelations of massive Medicare home health and hospice fraud centered in Los Angeles County, where federal data show unprecedented spikes in questionable billing and provider growth.

In a joint letter released January 13, House Committee Chairs Brett Guthrie, John Joyce, Morgan Griffith, Jason Smith, David Schweikert, and Vern Buchanan requested an urgent meeting with federal health watchdogs, citing “large-scale, ongoing Medicare fraud” in California’s largest county. The request follows alarming evidence suggesting that the county has become the epicenter of one of the nation’s most brazen health-care fraud schemes.

Among the findings: Los Angeles County now accounts for 18 percent of all home health billing in the United States, despite representing only a small fraction of the nation’s senior population. The county has nearly 2,000 hospice agencies—more than 36 states combined—and 30 times more than Florida or New York. In one instance, a single physician allegedly billed the federal government $120 million in one year while claiming to supervise 1,900 patients.

“How is that possible?” Rep. Jason Smith, chairman of the House Ways and Means Committee, said in a statement. “We’ve seen reports of hospices operating out of strip malls, unmarked buildings, even a wrecking yard. It’s an entire paper empire draining taxpayer dollars that should go to real care.”

A 2022 state audit revealed that more than 112 hospice agencies were registered to the same physical address in Los Angeles County. Federal auditors estimate that hospice fraud cost Medicare $198 million in fiscal year 2023, while improper home health payments reached $1.2 billion. The Centers for Medicare and Medicaid Services (CMS) has since labeled the home health sector as “high risk” for fraud and abuse.

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