HORROR: Medicare PLUNDERED — Patients Locked Out

Bundles of cash next to a stethoscope and a note that says 'COST OF CARE' — MEDICARE PLUNDER SHOCK

Fraudsters stole identities from the living to plunder Medicare’s hospice benefit, locking real patients out of care while pocketing billions in taxpayer dollars from ghost offices in Los Angeles County.

Story Snapshot

A House Ways and Means hearing exposed more than 700 LA County hospices with fraud red flags, including one doctor tied to 126 providers and 2,800 patients.
Victims like Dr. Lynn Ianni testified about stolen Medicare numbers blocking essential care.
LA County, “ground zero,” accounts for 18% of U.S. hospice billing, with an estimated $3.5 billion in fraud.
Bipartisan lawmakers demanded accountability; Trump task force suspended 447 providers.
DOJ arrests recovered $500 million nationally amid ongoing schemes.

Congressional Hearing Ignites Bipartisan Fury

House Ways and Means Chairman Jason Smith (R-MO) convened a four-hour hearing on Capitol Hill. Lawmakers grilled witnesses on hospice scams ravaging Medicare. Dr. Lynn Ianni, a psychotherapist, described fraudsters using her Medicare number to falsely enroll her.

This locked her out of treatments for months. Sheila Clark, CEO of the California Hospice and Palliative Care Association, revealed empty “ghost” offices stuffed with unopened mail. Smith declared fraudsters’ dark operations over as Americans demand answers.

Los Angeles County Emerges as Fraud Epicenter

California State Auditor reported a 1,500% surge in LA County hospice providers since 2010. This growth fueled $105 million in overbilling through shared addresses and excessive claims.

CBS News analyzed all 1,800 local hospices, flagging over 700—or 42%—with multiple red flags. Dr. Rajiv Bhuva appeared on claims for 2,800 patients across 126 providers. Lax state licensing lets foreign applicants flood the market, recruiting non-terminal seniors for sham enrollments.

California Officials Ignored Warnings for Years

State departments of Public Health, Social Services, and Health Care Services overlooked red flags since the 2022 audit. California AG Rob Bonta labeled it an “epidemic,” yet oversight failed. CMS pegged LA fraud at $3.5 billion annually.

Governor Gavin Newsom’s administration drew fire from federal probes. House Oversight Republicans sent a letter demanding explanations for taxpayer rip-offs.

Hospice fraud hearing exposes toll of suspected scams: "The American people are demanding answers." https://t.co/xRmb9nfGLR

— CBS News (@CBSNews) April 22, 2026

Federal Crackdown Delivers Arrests and Suspensions

The Trump Administration’s task force, led by VP JD Vance, suspended 447 LA-area hospices targeting $600 million in scams. DOJ’s Operation Never Say Die arrested eight defendants, including Topanga Hospice owner Chelsey Minerd, facing $9 million charges.

Recoveries reached $500 million nationally. Arraignments continue, like defendant Lauritzen’s on April 27. HHS-OIG and U.S. Attorneys pursue active investigations. These actions disrupt schemes but expose deeper systemic gaps.

Victims struggle to unenroll from fraudulent hospices, prolonging care denials. Taxpayers foot hundreds of millions yearly. Legitimate providers face stigma amid unchecked growth. Bipartisan consensus pushes reforms, in contrast to GOP-led federal pressure on California Democrats.

Path Forward Demands Stricter Oversight

Short-term suspensions aid victims, but long-term fixes require tighter licensing and verification. Expert Sheila Clark called LA “ground zero” and urged patient protections.

State Auditor highlighted ignored signals like live discharges from “terminal” care. Bipartisan hearings signal momentum, yet California’s failures align with patterns in Democrat-led states like Minnesota.