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California and the federal government battle over hospice fraud, as victims lose coverage and care

California and the federal government battle over hospice fraud, as victims lose coverage and care

Summary

California and the federal government are working to stop fraud in hospice care, where people are signed up for end-of-life services they do not need. Fraud has caused victims to lose important medical care and led to millions of dollars of false Medicare claims, especially in Los Angeles County.

Key Facts

  • Linda Henry, a healthy retiree, was wrongly enrolled in hospice care due to fraud.
  • Hospice care is for patients expected to live six months or less.
  • Fraudsters create fake hospices or steal identities to bill Medicare falsely.
  • Over 1,000 hospices in California were removed from Medicare since early 2025.
  • Los Angeles County alone has about $3.5 billion in false hospice claims.
  • California has revoked nearly 500 hospice licenses and put a pause on new ones since 2021.
  • New emergency rules were made in 2026 to better control hospice licensing.
  • People enrolled in fraudulent hospice lose access to other medical treatments covered by Medicare, hurting their health.
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