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Dr. Oz Provides Update on California's Healthcare Fraud

Dr. Oz Provides Update on California's Healthcare Fraud
AP Photo/Evan Vucci

Last week, Dr. Oz, head of the Centers for Medicare & Medicaid Services, said there was significant Medicare/Medicaid fraud in California related to hospice services. We're not really surprised to find massive fraud happening under Gavin Newsom's watch. The guy was given tens of millions of dollars to end homelessness in the state. That money is gone, but homelessness has gotten worse, and we can connect those dots.

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Now Dr. Oz is providing another update on the fraud in California.

"California is already paying back $1.6  billion that they previously charged to the federal government for healthcare services given to illegal immigrants," Oz said. "But they have a much bigger fraud problem that hurts American citizens. So I've instructed Governor Newsom to produce within the next three weeks a comprehensive program integrity action plan to address major fraud in their healthcare systems."

"I'm going to give you three examples of embarrassing fraud that Governor Newsom has been seemingly tolerating for years," Oz continued. "First, California shares the problems that we are seeing in Minnesota with in-home supportive services. What are these? They include personal care like bathing or grooming, household tasks — cleaning or cooking — shopping, transportation. Now, these are tasks that your family could do for you, but having the government pay has generated some significant cash for unethical people. California's spending for these services increased from $8 to $28 billion over the past decade. Why should the federal taxpayer spend 250 percent more money on California, which is already an affluent state? And this program is still growing by double digits annually."

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"Second, in 2024 alone, spending for home healthcare in California increased by more than 21 percent, representing the largest growth rate for any major health category nationwide," Oz said. "The number of home health agencies in California almost doubled between 2019 and 2024. L.A. County alone is accounting for $1.4 billion, representing almost nine percent of total fee-for-service home health spending for the entire country, though it just has two percent of the national enrollment. That's five times more than expected."

"I don't get it," Oz continued, "they're taking home money that other agencies nationwide could use, so fewer Americans can get access to these vital services. L.A. County's corrupt practices are hurting innocent seniors outside of southern California."

"Finally, L.A. County should be ashamed of the 2022 California State Auditor Report, showing that their number of hospice agencies increased by 1,500 percent since 2010," Oz said. "Yes, you heard that right. 1,500 percent. That exceeds the 40 percent increase in the senior population during that same period. How can you defend a seven-fold increase in hospice, especially since so many of these charlatans report 100 percent survival for supposedly terminally ill patients? I'm hearing horror stories from seniors duped by these fraudsters because California is not stopping these criminals."

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"Governor Newsom, the clock is ticking on the deadline for your comprehensive program integrity action plan," Oz said. "Start saving American lives instead of enabling criminals."

Oz also shared the letter sent to Newsom.

The comprehensive program integrity action plan is asking Newsom to explain program-level oversight, eligibility determination and immigration status controls, provider screening and validation, program integrity infrastructure, and in-home supportive services oversight.

"CMS requests that the state submit its initial response, along with any relevant supporting documentation, within 21 days of receipt of this letter. We look forward to your timely response," the letter concludes.

Editor’s Note: Help us continue to report the truth about corrupt politicians like Gavin Newsom.

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