Hospice Closures Amid Fraud Investigations
Over 400 hospices in Los Angeles are shutting down as the Centers for Medicare and Medicaid Services (CMS) expands its Fraud Office initiatives, according to Dr. Mehmet Oz during a discussion on “Pod Force One.”
Oz noted that surprisingly, CMS has received “zero” complaints regarding the “hundreds of millions of dollars” lost from these hospice programs. He attributed this issue to the policies in blue states that supposedly lack effective oversight.
“How many people do you think complained to us? Zero,” he shared exclusively with The Post’s Miranda Devine.
Oz, who took on a leadership role at CMS, estimated that approximately $100 billion is lost to fraud each year in social services. He suggested that the federal government tends to place excessive trust in some service providers.
CMS, which oversees Medicare, Medicaid, and the Children’s Health Insurance Program, spent around $1.691 trillion last year.
He warned that a culture of fraud significantly undermines programs like Medicare, which may face funding issues as its trust fund for hospital care is projected to run out by 2033, as per the Social Security Administration.
“If we could eliminate fraud, we could extend the Medicare Trust Fund’s lifespan significantly,” he asserted. “That’s crucial for our healthcare system’s integrity.”
In response to these challenges, CMS has started a “Fraud Office” dedicated to ensuring that funds are properly managed.
Oz described the types of fraud involved, clarifying that it often includes various services that families might have relied on in the past. He elaborated, mentioning scenarios like transportation to doctor appointments or help with groceries.
He praised YouTuber Nick Shirley for addressing fraud issues nationwide and shared that CMS has been scrutinizing Minnesota’s expenditures lately, finding many charges puzzling.
Oz expressed his concern about California, noting that a few years prior, the state’s comptroller informed Governor Newsom about significant issues related to hospice fraud.
One specific concern raised by Oz pertains to California allegedly using federal funds to provide benefits—like vision and dental care—to illegal immigrants.
This reflects California’s Medi-Cal program, which expanded to include these benefits a few years back. The program provides coverage to low-income residents regardless of immigration status. Notably, Governor Gavin Newsom’s administration has faced criticism for prioritizing benefits for illegal immigrants over Medicare recipients.
Oz concluded by emphasizing that older Americans in different regions without comparable benefits might be left to cover their vision and dental care expenses themselves, effectively creating disparities in care access.
