The House Committee on Oversight and Government Reform announced on Mar. 23 an investigation into alleged widespread taxpayer fraud in California’s hospice programs. Chairman James Comer and Republican members of the committee sent a letter to Governor Gavin Newsom requesting documents and communications related to the state’s oversight of federally funded hospice care.
The inquiry follows reports that California officials have not adequately protected federal funds, raising concerns about overbilling Medicare and enrolling beneficiaries without their knowledge. The committee said these failures could be costing taxpayers millions while also putting vulnerable patients at risk.
In their letter, Comer and other lawmakers wrote: “Recent reporting has revealed alarming evidence of fraudulent activity in California’s hospice programs, including agencies overbilling Medicare and fraudulently enrolling beneficiaries without their knowledge. In California, your administration’s Departments of Public Health, Social Services and Health Care Services all have a role in overseeing federally funded hospice programs. 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. 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. Despite these red flags, it appears California has enabled hospice providers to defraud the American taxpayer and exploit vulnerable patients.”
According to information referenced by the committee, a March 2022 report from the California State Auditor found that Los Angeles County experienced a dramatic increase—1,500 percent—in licensed hospice providers since 2010, with at least $105 million in Medicare overbilling recorded in one year alone. Whistleblowers also reported minimal safeguards against fraudulent licensing practices.
Committee members cited additional warnings from state officials such as Attorney General Rob Bonta who described Los Angeles County's situation as “an epidemic.” They pointed out several audit findings including multiple providers sharing addresses or staff, low patient counts compared with other regions, instances where terminally ill patients were later discharged alive, excessive billing for possibly unprovided services, and staff shared among multiple hospices.
As part of its ongoing review into misuse of federal social service funds nationwide—including similar issues previously identified in Minnesota—the Oversight Committee seeks further details from Governor Newsom's office regarding steps taken to improve oversight mechanisms for these healthcare services.
