Newsom responds as MAJOR fraud allegations surface

Fox News covers allegations of massive Medicare and Medicaid fraud in Los Angeles, centering on claims made by Dr. Oz, who now serves as Administrator for the Centers for Medicare and Medicaid Services. According to the video, Dr. Oz alleges that billions of taxpayer dollars are being fraudulently funneled through hospice and home care operations in California, prompting a sharp response from Governor Gavin Newsom.

In Fox News’s Own Words

“In this four block area in Los Angeles, there are 42 hospice care centers.”

“We have learned that there is roughly $3.5 billion of fraud taking place here in Los Angeles in hospice and home care.”

“Dr. Oz says there’s been a sevenfold increase in hospice centers in five years.”

According to the video, Dr. Oz claims that a four-block area in Los Angeles contains 42 hospice care centers, which he characterizes as evidence of alleged fraudulent activity. Fox News reports that Dr. Oz alleges approximately $3.5 billion in fraud is taking place in Los Angeles involving hospice and home care operations. In the video, Dr. Oz further claims that “quite a bit of it is run by the Russian Armenian mafia,” though no additional evidence for this allegation is presented in the segment.

Fox News anchor Shannon Bream, appearing on the program, discusses the scope of the alleged fraud. According to Bream, some investigators believe the California situation “will dwarf the scope of what we’ve seen in Minnesota,” referencing another fraud investigation. The video notes that former President Trump suggested in a town hall that the fraud could total $19 billion. Bream states that Dr. Oz and the U.S. Attorney’s Office allege there has been an “explosion” of fraudulent activity, with people allegedly signing up for services, names being used improperly, money being funneled, and alleged kickbacks to doctors.

Governor Newsom’s office issued a response, which Fox News presents in the segment. According to the video, Newsom’s statement criticized Dr. Oz, saying it was “amazing to watch Dr. Oz cosplay as a fraud fighter for an effort the state launched years ago back when he was busy pitching miracle horse supplements to insomniacs on late-night TV.” The statement claims that California banned new hospices beginning in 2022 and revoked over 280 licenses. Newsom also allegedly accused the Trump administration of cutting the ability to prevent fraud and of ignoring alleged widespread fraud in other states.

Bream raises questions about the timeline, noting that if Newsom’s crackdown began in 2021, it remains unclear how the alleged sevenfold increase in hospice centers occurred over five years. The video emphasizes that the alleged fraud involves taxpayer money flowing through Medicare and Medicaid programs.

This story matters because it highlights potential vulnerabilities in federal healthcare programs that serve vulnerable populations. The competing narratives between federal and state officials regarding responsibility for oversight and enforcement raise questions about coordination in combating alleged healthcare fraud. If the allegations prove accurate, billions in taxpayer dollars intended for end-of-life care may have been diverted, representing a significant breach of public trust and a potential failure of regulatory systems designed to protect both patients and public funds.