Centers for Medicare & Medicaid Services Administrator Dr. Mehmet Oz sounded the alarm Thursday on Newsmax, warning that a shocking concentration of hospices in Los Angeles points to massive fraud undermining America's healthcare system.
During an appearance on "Bianca Across the Nation," Oz said the scale of abuse in California is a glaring example of how bad actors are exploiting Medicare and Medicaid at the expense of vulnerable seniors.
"If you want to make healthcare more affordable in America, deal with the fraud and the waste and the abuse," he said, estimating that it drains more than $100 billion each year from Medicare and Medicaid.
Eliminating fraud is not just a fiscal issue, Oz stressed, but also a program issue, key to preserving the future of entitlement programs.
"Taking care of the fraud would double the life expectancy of the Medicare trust fund," he said, calling it "a big deal."
Oz pointed to Los Angeles as ground zero for one of the most disturbing trends in the country.
"One third of all hospices in the entire country are in Los Angeles," he said. "Think about this. I mean, how much death is there in Los Angeles?"
Oz said the numbers defy logic and point to a system flooded with fraudulent operators collecting federal reimbursements.
"They're definitely not picking patients who are at risk," he said, noting unusually high survival rates that contradict the purpose of hospice care.
Oz warned that the corruption has created a dangerous ripple effect, drawing in more criminals and expanding the scope of abuse.
"It creates an ecosystem where other fraudsters get involved," he said, describing chilling schemes where seniors are exploited for profit, including cases where individuals are trafficked for their Medicare information.
"People who own homes can now take these seniors, kidnap them … traffic their Medicare information and get hospices to pretend that they're taking care of them," Oz said.
Oz emphasized that many victims are unaware they are being used in fraudulent operations, deepening the human toll.
Despite the scope of the crisis, he said there is bipartisan recognition that significant action is needed.
"There are Democrats who are interested," Oz said, pointing to discussions with governors across the country.
He cautioned against turning fraud into a political football, stressing that the problem spans multiple states.
"If this becomes a partisan issue, we're going to hurt everybody," Oz said.
The Centers for Medicare & Medicaid Services are moving aggressively to stop fraudulent payments before they go out the door while also pursuing prosecutions, according to Oz.
"I want people to go to jail … but even more importantly, I don't want the money leaving our building," he said.
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Nicole Weatherholtz ✉
Nicole Weatherholtz, a Newsmax general assignment reporter covers news, politics, and culture. She is a National Newspaper Association award-winning journalist.
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