House Oversight Committee Chairman James Comer, R-Ky., and Republican members on Monday launched an investigation into alleged
widespread fraud in California's federally funded hospice programs, citing what they described as years of insufficient oversight by the Newsom administration.
In a letter to Gov. Gavin Newsom, lawmakers said state officials had been aware of audit findings and warning signs of fraud for at least four years but failed to take adequate action. The committee is requesting documents and communications related to California's internal controls, oversight practices, and efforts to prevent fraud in Medicare- and Medicaid-funded hospice care.
"The Committee is concerned your administration does not have sufficient internal controls to prevent and detect fraud and is not conducting proper oversight of these hospice programs. As a result, Americans across the country are paying for California's rampant hospice fraud and vulnerable patients are being exploited," the lawmakers wrote.
The probe follows reports by CBS News earlier in the month of hospice providers overbilling Medicare and enrolling patients without their knowledge.
"California has a well-documented history of fraud in its hospice programs. Your administration has been aware of credible reports of hospice fraud for at least four years," the committee added.
"Despite these red flags, it appears California has enabled hospice providers to defraud the American taxpayer and exploit vulnerable patients," wrote the lawmakers.
Lawmakers pointed to a 2022 California State Auditor report that found Los Angeles County experienced a 1,500% increase in hospice providers since 2010 — along with at least $105 million in Medicare overbilling in a single year.
Federal officials have since estimated hospice fraud in the county could total as much as $3.5 billion, representing a significant share of nationwide billing.
In their letter, Republicans also cited whistleblower allegations that weak licensing safeguards allowed fraudsters, including individuals operating from abroad, to obtain hospice licenses and recruit seniors into fraudulent schemes, sometimes without patients' awareness.
The committee drew parallels to its recent investigation into fraud in Minnesota's social service programs, arguing similar oversight failures may be occurring in California.
Lawmakers set an April 6 deadline for the Newsom administration to provide requested records as part of the ongoing investigation.
James Morley III ✉
James Morley III is a writer with more than two decades of experience in entertainment, travel, technology, and science and nature.
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