On Wednesday, California Republicans criticized Democratic Governor Gavin Newsom and Attorney General Rob Bonta regarding claims about their efforts to combat fraud in the state.
They urged for a targeted legislative approach to fully investigate the depth of the misconduct, particularly pointing out errors in oversight that need addressing to safeguard taxpayers’ funds.
“The governor claims he’s suspending his license. Yet, he already licensed this doctor who has defrauded us of $270 million,” stated Rep. James Gallagher, who is also pursuing a Congressional seat. “This governor and the politicians in power here have done nothing about it. They’ve ignored the problem and keep throwing good money after bad. It’s time to say enough is enough.”
Reports indicate fraud is widespread in vital state programs like Medi-Cal, home assistance services, unemployment insurance, and various infrastructure projects.
California is under investigation by a powerful congressional committee after a local publication revealed extensive hospice fraud costing taxpayers over $100 million.
Highlights of the fraud issue have also been propelled into the spotlight by conservative YouTuber Nick Shirley and the Director of the Centers for Medicare and Medicaid Services, Dr. Mehmet Oz.
“We’re looking into this issue, and honestly, we suspect that what we’re seeing in California is going to outshine similar problems in Minnesota,” remarked U.S. Attorney Bill Esseri. “What’s happening in Minnesota is quite small compared to the level of fraud we believe is taking place in California.”
Newsom and Bonta have been defending their administration against accusations regarding widespread fraud throughout the year. On April 9, Bonta announced criminal charges against 14 hospice companies that had billed Medi-Cal and Medicaid $267 million for non-existent services.
Bonta asserted, “We’re committed to addressing this issue. We’ve been successful long before some had even considered it an issue.”
Nonetheless, there are growing doubts about whether Democrats are genuinely trying to turn the situation around.
Assembly Republican Leader Heath Flora remarked, “This just shows how significant the problem became before we took action. Why did it take so long to get to this point?”
Flora stated that without substantial reforms to oversight, further announcements would have little impact. He emphasized the need for a special Diet session.
“Let’s allocate real funds for enforcement and engage all relevant departments to find answers,” he added.
However, the call for a special session may not resonate with Newsom and the Democrats who dominate the Legislature. Newsom has consistently maintained that the state proactively combats fraud.
“The federal government is essentially trying to blackmail us with unfounded accusations of ‘massive fraud,'” Newsom previously stated. “The rule of law is not a political tool; it’s a promise, and we won’t let it be manipulated for settlements.”
