California is taking major action against organized crime groups that have been systematically defrauding the Medi-Cal hospice program in Los Angeles. Governor Gavin Newsom and Attorney General Rob Bonta announced that the state is bringing criminal charges against transnational criminal networks that used stolen identities to fraudulently enroll people in Medi-Cal and bill for hospice services that were never actually provided.

The scope of this scheme is massive. Fourteen fraudulent hospice providers racked up over $267 million in improper claims using state and federal funds. What makes this even more infuriating? Not a single legitimate hospice service was ever provided throughout the entire fraud operation. These weren’t mistakes or loopholes, this was deliberate, calculated fraud targeting one of the most vulnerable populations.

The timing of this announcement is significant. Governor Newsom made a pointed dig at the Trump administration, noting that since these are state charges, Trump cannot pardon these individuals “in exchange for campaign donations”. This comes after Trump pardoned the man behind the biggest healthcare fraud in U.S. history earlier this year, signaling a major shift in federal oversight.

Here’s the good news: California’s fraud detection systems actually worked. The state’s Department of Health Care Services identified irregularities and triggered an immediate investigation that contained the damage before even more money could be stolen. Officials suspended all fraudulent hospice providers, disenrolled thousands of fraudulent accounts tied to stolen identities, and revoked licenses for every provider involved.

California has been building one of the most comprehensive hospice fraud enforcement efforts in the country. Under Governor Newsom’s leadership, the state established a Hospice Fraud Task Force, implemented a moratorium on new hospice licenses that’s still in effect, and revoked over 280 licenses in the past two years. An additional 300 providers are currently under investigation, and 284 criminals have been arrested.

The state is also strengthening its defenses going forward. New safeguards include advanced data analytics that flag suspicious patterns before payments are made, strict provider enrollment checks, enhanced identity verification for Medi-Cal applicants, and policy controls that give DHCS the ability to review and approve hospice services before payment.

Attorney General Rob Bonta emphasized that this isn’t a political game, it’s about protecting taxpayer dollars and the vulnerable Californians who depend on Medi-Cal. When fraudsters steal from public health programs, they drain critical resources that should be going to people who actually need them.

If you suspect Medi-Cal fraud, you can report it immediately through DHCS’s hotline at (800) 822-6222, by emailing fraud@dhcs.ca.gov, or through their online reporting system.