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Claims of Medicare fraud surge by 7,100% as Vance task force takes action

Claims of Medicare fraud surge by 7,100% as Vance task force takes action

Department of Justice Unveils Actions Against Fraud During Trump’s Administration

The Fraud Task Force under the Trump Administration has launched numerous enforcement actions, recovering significant sums linked to fraudulent activities. Colin MacDonald, an Assistant Attorney General from the National Fraud Enforcement Bureau, is prioritizing severe cases involving the exploitation of vulnerable populations, such as the elderly and ill. He emphasized the task force’s efforts, including arrests and convictions, while urging whistleblowers to participate in a national investigation.

In a related development, the Trump administration recently shared alarming statistics indicating that claims for tissue and organ transplants under Medicare skyrocketed by around 7,100% over a six-year period. This surge—escalating from $200 million to an astonishing $14.4 billion—has prompted the Fraud Task Force, along with the Centers for Medicare and Medicaid Services (CMS), to flag and reject a staggering 96% of these claims filed since March.

Under Secretary Mehmet Oz’s leadership, CMS has pinpointed roughly 4,200 suspicious claims for allogeneic transplants, amounting to $224 million by May of this year.

Oz also expressed concern over billions being lost to Medicare fraud and warned that personal information could be at risk.

Additionally, CMS identified dubious billing practices concerning durable medical equipment, such as wheelchairs and hospital beds. Consequently, they halted payments to 102 suppliers and pulled billing privileges from 725 others.

A spokesperson from Vance’s office mentioned that, within just six months, significant progress has been made in eliminating DME fraud in the United States. They highlighted how a collaboration between the White House and the task force, coupled with robust enforcement, has dramatically curtailed this type of fraud.

Suppliers whose payments were suspended accounted for 8.6% of all Medicare-funded DME in 2025.

Oz announced the suspension of 800 hospice providers in California over an alleged $1 billion Medicare fraud scheme. Reports suggest fraudulent activity involved suppliers billing for equipment that was either unnecessary, more complex than ordered, or not delivered at all.

Oz lauded the task force’s comprehensive approach, resulting in a halt to nearly $220 million in fraudulent claims related to skin substitutes and the suspension or revocation of over 800 DME suppliers’ privileges.

Vice President Vance is set to hold a press conference with Oz in Milwaukee on Wednesday to further address the task force’s initiatives.

In May, the Department of Justice unveiled over $90 million in fraudulent claims linked to state-funded assistance programs in Minnesota and indicted 15 individuals involved.

Vance previously stated that the task force achieved significant actions against major Medicaid fraud in Minnesota, declaring a clear message: those committing fraud will be pursued and face consequences.

President Trump established this task force through an executive order in May, assigning Vance to lead a coalition of various government agencies aimed at combating fraud nationwide. Trump commended the efforts, indicating substantial findings and asserting that the initiative was just beginning.

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