House Oversight Committee Probes $74K Hospice Fraud in California as Gubernatorial Debate Sparks Race Controversy

Congress Launches Investigation into Alleged Hospice Fraud in California Amid Political Debate Cancellation

WASHINGTON — The Republican-led House Oversight Committee announced on Monday that it will investigate allegations of widespread hospice fraud in Southern California, citing potential losses of tens of millions of taxpayer dollars. The committee sent a letter to California Governor Gavin Newsom requesting documents related to the state’s oversight and internal controls of federally funded hospice programs. The investigation follows a recent CBS News report that identified over 700 hospices in Los Angeles County exhibiting multiple red flags for fraud, including overbilling Medicare and enrolling beneficiaries without their knowledge.

The CBS News analysis found that hospices in Los Angeles County billed Medicare at rates significantly higher than the national average. While the average hospice bills Medicare approximately $13,200 per patient nationwide, the typical hospice in LA County billed around $29,000 per patient, with some billing as much as $74,000. The House Oversight Committee expressed concern that California’s current oversight mechanisms are insufficient to prevent and detect fraud, potentially exploiting vulnerable patients and costing taxpayers nationwide. The letter, signed exclusively by Republican members, requests communications between the governor’s office and several state agencies from January 2019 to the present, with a deadline of April 6 for compliance.

In response, a spokesperson for Governor Newsom highlighted actions taken by the state, including a moratorium on new hospice licenses since 2021 and the establishment of a multi-agency hospice fraud task force. The spokesperson noted that over 280 hospice licenses have been revoked in the past two years, with an additional 300 providers under investigation. The state continues efforts to suspend payments, revoke licenses, and pursue prosecutions. Dr. Mehmet Oz, administrator of the Centers for Medicare and Medicaid Services, emphasized that the investigation targets the issue of fraud itself rather than Governor Newsom personally.

Meanwhile, in California’s gubernatorial race, a scheduled debate was canceled just hours before it was set to take place on Tuesday following criticism that the event’s qualification criteria excluded all nonwhite candidates. The debate, co-sponsored by the University of Southern California (USC) and Los Angeles TV station KABC, had invited six candidates based on polling and fundraising thresholds. All invited participants were white, while prominent nonwhite candidates such as former Health and Human Services Secretary Xavier Becerra, former Los Angeles Mayor Antonio Villaraigosa, and others were excluded.

USC issued a statement acknowledging that concerns about the selection criteria had created a significant distraction from voter issues and announced the debate’s cancellation. The university defended the methodology used to determine eligibility, citing extensive research and academic support. The exclusion sparked backlash from the campaigns of the omitted candidates, who called for all participants to withdraw from the debate in protest. Efforts were underway by some campaigns to organize an alternative event including all candidates, but no final plans had been confirmed.

The cancellation comes amid broader concerns within the Democratic Party about the crowded field potentially enabling a Republican candidate to advance in the June 2 primary. California Democrats have urged less viable candidates to withdraw before the April 15 deadline to consolidate support. The gubernatorial race includes a diverse slate of candidates from both parties, with no clear front-runner emerging in early polling. The top two vote-getters in the primary will advance to the November general election, regardless of party affiliation.