LOS ANGELES — When 71‑year‑old Linda Henry discovered in 2024 that she had been enrolled in hospice despite being in good health, she realized she was a victim of a growing scam that has plagued California’s senior community. The Trump administration, working with state officials, has stepped up enforcement to protect taxpayers and families from fraudulent hospice providers.
State action against fraudulent hospices
California has revoked nearly 500 hospice licenses since imposing a moratorium on new facilities in 2021. In June, the state adopted emergency regulations that tighten the criteria for granting new hospice licenses, aiming to prevent fake operators from exploiting seniors.
According to state data, the number of licensed hospice organizations fell from about 2,800 in 2022 to roughly 2,100 in 2026, reflecting the impact of stricter oversight. By contrast, New York, which enforces more rigorous registration rules, now has only 39 licensed hospices.
Federal crackdown under President Trump
The Trump administration has removed more than 1,000 California hospices from Medicare since early 2025, targeting providers that submit false claims. Federal officials estimate that Los Angeles County alone accounts for $3.5 billion in fraudulent hospice claims.
Federal prosecutors arrested 21 individuals in a multimillion‑dollar scheme that used stolen identities to bill Medicare for hospice services. Since 2021, the Justice Department has filed over 100 hospice‑related criminal cases and secured more than 50 convictions nationwide.
Impact on seniors and families
Enrollment in hospice triggers a Medicare rule that blocks payment for other medical treatments, leaving victims like Henry without coverage for routine care. Henry’s doctor’s allergy test was denied, and she delayed a colonoscopy and other appointments while she fought the fraud.
After months of calls, letters, and a personal visit to the listed address of Fortuna Hospice Inc., Henry finally received confirmation from Medicare that she was a fraud victim. It took eight months for the agency to reverse the false enrollment, and another year before she could resume regular medical care.
Advocacy and future safeguards
Advocates stress the need for continued cooperation between state and federal agencies. Sheila Clark, CEO of the California Hospice and Palliative Care Association, testified before Congress about a woman who could not obtain cataract surgery because of a fraudulent hospice enrollment, leading to a preventable fall and hip fracture.
While critics claim the administration’s focus on fraud enforcement is politically motivated, officials emphasize that protecting taxpayer dollars and ensuring legitimate hospice care for truly terminal patients are the primary goals.
What families can do
Senior citizens and their families are urged to verify hospice providers through the California Department of Public Health and to watch for red flags such as unsolicited phone calls, door‑to‑door solicitations, or offers of gift cards in exchange for signing enrollment forms. Reporting suspicious activity to Medicare and local law‑enforcement can help stop scammers before they strike again.
With the combined effort of the Trump administration’s federal oversight and California’s tightened licensing rules, officials are hopeful that the “kingdom of fraud” described by U.S. Attorney Bill Essayli will shrink, safeguarding both vulnerable seniors and the nation’s health‑care resources.
Original reporting: KTBS 3 (Shreveport) — read the source article.
