In a recent Fox News segment, Centers for Medicare & Medicaid Services (CMS) Administrator Dr. Mehmet Oz exposed a staggering $1.8 billion in Medicaid spending by eight Democratic-led states on healthcare for illegal immigrants. The broadcast, aired on January 19, 2026, highlighted California’s dominant role, with $1.3 billion in federal dollars allocated to non-citizens, including some with violent criminal histories. Oz emphasized that this misuse strains resources intended for American citizens, veterans, and the elderly, labeling it a systemic failure under prior administrations.
The segment underscored a sevenfold spike in hospice care billing in Los Angeles County over recent years, far outpacing natural population growth or mortality rates. “That doesn’t happen naturally,” Oz stated, attributing the surge to fraudulent operations often run by foreign gangs exploiting vulnerable patients. This revelation comes amid ongoing federal probes into California’s healthcare system, identified as a hotspot for abuse, with 18% of national home health and hospice Medicare billing originating from LA County alone.
California Governor Gavin Newsom has repeatedly claimed his administration has eradicated fraud, boasting of blocking over $125 billion in scams, arresting perpetrators, and safeguarding taxpayers. However, critics argue these assertions ring hollow against the backdrop of exploding hospice expenditures, which suggest unchecked exploitation of federal funds. Investigations by the Department of Justice and CMS, announced in early 2026, point to organized crime networks enrolling ineligible individuals, including illegal immigrants, into end-of-life care for profit.
Experts dub California the “fraud capital” of America due to lax oversight and a boom in sham providers. Federal audits reveal billions in improper payments, with LA County agencies overbilling Medicare by hundreds of millions annually. The Trump administration vows to claw back funds and impose stricter eligibility checks, but urgent action is needed. As Oz warned, “We won’t tolerate it.” Immediate, comprehensive investigations are essential to dismantle these schemes and restore integrity to taxpayer-funded programs.
References:
- https://www.foxnews.com/media/dr-oz-accuses-democrats-gaslighting-americans-over-1b-medicaid-payments-illegal-immigrants
- https://nypost.com/2026/01/09/us-news/billions-in-healthcare-fraud-discovered-in-california-dr-oz-claims
- https://hospicenews.com/2026/01/12/cms-doj-aggressively-cracking-down-on-hospice-fraud
