Overview of Billions Missing: Dr. Oz Takes On California Healthcare Fraud | 2.7.26
This Weekend Edition Morning Wire interview (The Daily Wire) features CMS Administrator Dr. Mehmet Oz discussing federal investigations into alleged large-scale Medicare/Medicaid fraud centered in California—especially Los Angeles County—and spreading to other states. Hosts John Bickley and Georgia Howe probe the scope of the problem, examples of patient harm, the involvement of organized-crime networks, CMS actions (audits, corrective-action demands), and public pushback from California Governor Gavin Newsom.
Key topics discussed
- Reported explosion in hospice and in-home Medicare billings in L.A. County and other states.
- Allegations that criminal networks (including organized crime) are exploiting hospice/home-health programs.
- Specific patient harm examples where people were signed into hospice fraudulently and lost access to necessary care.
- CMS investigations, referrals to U.S. attorneys/FBI, and corrective-action letters sent to state governors (California, Minnesota).
- Political controversy: Gov. Newsom’s public pushback (including an accusation of racism) and CMS’s demand for state cooperation.
- Broader implications for taxpayers and legitimate providers nationwide.
Main takeaways
- Scale of alleged fraud: The episode cites a 2022 California State Auditor finding that the number of hospice agents in L.A. County rose dramatically (the host cites a 1,500% increase since 2010) while the senior population rose far less (about 40%)—an imbalance that triggered federal scrutiny.
- Patient harm is central: Dr. Oz emphasizes that beyond taxpayer loss, vulnerable seniors have been deprived of care (example: a man allegedly tricked into signing hospice consent who later could not access treatment and died).
- Organized-crime involvement: CMS investigators allege networks have “weaponized” hospice/home-health billing; Oz referenced individuals tied to organized criminal efforts and an indicted figure who fled the country.
- Geographic spread: What began in parts of California has appeared in other states (Nevada, Minnesota, Texas, Arizona), suggesting the problem can migrate where enforcement is weak.
- CMS response strategy: Priority is to stop unlawful payments from leaving the federal system (rather than only criminal prosecutions). Actions include audits, deferred payments, corrective-action plans, and referrals to federal prosecutors.
- Political friction: Gov. Newsom has pushed back against CMS investigations; Dr. Oz accuses some state leadership of tolerating fraud possibly due to political patronage and urges state-level enforcement.
Evidence and examples cited on the show
- 2022 California State Auditor report (referenced by hosts) showing a huge increase in hospice agents in L.A. County since 2010.
- Anecdotal patient story told by Dr. Oz about fraudulent hospice consent leading to loss of care and death.
- CMS has referred cases to the U.S. Attorney in Los Angeles and engaged with figures such as Pam Bondi and Kash Patel (per Oz).
- CMS sent formal corrective-action letters to governors (Minnesota’s Gov. Tim Walz previously, and a similar tailored letter to Gov. Newsom for California).
- CMS has used tools like deferred payments in Minnesota to get state attention and is conducting audits to access and verify data.
Notable quotes
- “This is an example of what happens if you don't deal with fraud in a timely fashion.” — Dr. Mehmet Oz
- “What we've really witnessed is a weaponization of this criminal effort that has been tolerated.” — Dr. Mehmet Oz
- “My focus is not on putting people in jail. My focus is on stopping the money from leaving the building.” — Dr. Mehmet Oz
Actions taken and recommended next steps
- CMS actions already taken:
- Sent corrective-action plans to state governors (California, Minnesota).
- Launched audits and deferred federal payments where appropriate.
- Referred cases to the U.S. Attorney’s Office in Los Angeles; coordinating with law enforcement.
- Recommended state actions (as urged by CMS/Oz):
- Use state-level enforcement tools to investigate and shut down fraudulent providers.
- Cooperate with federal audits and provide access to data.
- Consider legislative/regulatory reforms to tighten hospice/home-health enrollment and billing oversight.
- What to watch next:
- CMS follow-up letters and corrective-action compliance from California.
- Results of federal audits, hearings (Minnesota requested a hearing), and any criminal prosecutions or indictments.
- Policy changes or tighter enrollment controls for hospice and in-home care programs.
Who’s involved
- Dr. Mehmet Oz — Administrator, Centers for Medicare & Medicaid Services (guest).
- Hosts: John Bickley (Daily Wire executive editor) and Georgia Howe.
- Governor Gavin Newsom (California) — publicly criticized parts of the investigation.
- Governor Tim Walz (Minnesota) — previously targeted by CMS corrective action.
- Federal partners mentioned: U.S. Attorney’s Office (Los Angeles), FBI, and other law-enforcement contacts.
Bottom line
The episode frames alleged hospice and in-home Medicare billing fraud in California—especially L.A. County—as a large, organized, and spreading scheme that harms vulnerable patients and diverts federal funds. CMS, led by Dr. Oz, is escalating audits, corrective demands, and referrals to prosecutors while pressing reluctant state leaders (notably Gov. Newsom) to act. Listeners should expect ongoing federal audits, potential hearings, and heightened enforcement aimed at stopping improper payments and protecting patients.