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California Hospice Fraud Feud Escalates Between Trump, Newsom

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Hospice fraud in California has erupted into a partisan battle, with the Trump administration and Democratic state leaders trading blame over a problem everyone agrees is severe. President Trump created a task force last month and claimed fraud in the nation's most populous state was "10 times worse" than anywhere else. Dr. Mehmet Oz, who now runs CMS, has visited California and posted videos decrying the fraud.

The schemes have been remarkably brazen. State investigators uncovered fraudsters purchasing personal information off the dark web and billing for services never rendered. In one case, the state was defrauded of $267 million. A 2022 state audit found 210 active hospice agencies within a one-mile radius in Van Nuys — more than Florida and New York combined.

Republicans have tried to pin the problem on Gov. Gavin Newsom, a potential 2028 presidential contender. But state investigators had uncovered the fraud long before Trump's task force. Newsom signed a moratorium on new hospice licenses in 2021, and since then the state has filed 109 criminal cases and revoked 280 licenses. A House committee held a hearing Tuesday as the political feuding intensifies.