Dr. Oz: California In-Home Care Fraud Fight

SACRAMENTO, Calif. – California is facing “major fraud” in its healthcare system, with spending on in-home supportive services ballooning from $8 to $28 billion over the last decade, according to Dr. Mehmet Oz,administrator of the U.S. Centers for Medicare & Medicaid Services (CMS). The administrator is urging the state to address these issues promptly.

Fraud concerns Extend to Home Health and Hospice Care

The call for action comes as California grapples with increasing concerns over fraudulent practices in both in-home care and hospice services.

• Dr. Oz instructed California Gov. Gavin Newsom (D) to create a complete program integrity action plan.
• Los Angeles County is being singled out for its high volume of home health spending and potential fraud.
• Over 280 licenses have been revoked from new hospice operators in California over the past two years.
• The number of home health agencies in California doubled between 2019 and 2024.

In a video posted to X on Tuesday, Oz directly addressed Gov. Newsom, emphasizing the need for a robust action plan. He highlighted that in-home supportive services, which include personal care like bathing, grooming, cleaning, and transportation, are tasks often handled by family members, but government funding has created opportunities for unethical actors.

Home Health Spending Under Scrutiny

Fraud in Los Angeles County has become a focal point, with lawmakers requesting increased oversight to combat the issue. Oz pointed out that Los Angeles county accounts for almost 9% of the nation’s total fee-for-service home health spending, despite representing only 2% of the national enrollment. “I don’t get it,” Oz stated. “They’re taking home money that other agencies nationwide could use so fewer Americans can get access to these vital services. LA County’s corrupt practices are hurting innocent seniors outside of Southern California.”

Did you know? – In-home supportive services are intended for individuals who need assistance with daily living activities, but the increased funding has attracted fraudulent actors exploiting the system.

The concerns aren’t limited to home health. Oz also addressed fraud related to hospice care, noting that Newsom’s management had revoked over 280 licenses from new hospice operators in the state over the last two years.

The video’s release followed a series of meetings and a visit to Nevada and California where Oz focused on home health and hospice fraud, especially investigating kickbacks.

Why is this happening?

The surge in spending and subsequent fraud stems from a combination of factors. Increased government funding for in-home supportive services, intended to help vulnerable populations, created financial incentives for fraudulent activity. The rapid growth in the number of home health agencies – doubling between 2019 and 2024 – suggests a lack of sufficient oversight and vetting of providers. Specifically, Dr. Oz points to Los Angeles County’s disproportionately high spending as a key indicator of systemic issues.

Pro tip – Be wary of unsolicited offers for in-home care or hospice services. Always verify the provider’s credentials and ensure they are licensed and reputable.

Who is involved?

The primary parties involved are california state officials, particularly Gov. Gavin Newsom and his administration, who are being urged to address the fraud.Dr. Mehmet Oz and the CMS are leading the charge in identifying and exposing the issues. Fraudulent actors, including home health agencies and hospice operators, are directly responsible for the illegal activity. Ultimately, vulnerable seniors and taxpayers are harmed by these