Oz Says California’s Not Fighting Health Care Fraud, but Data Shows It’s Part of a Larger Battle

Why It Matters

The feud highlights how health‑care fraud enforcement can become a partisan tool, potentially affecting billions in federal Medicaid payments and shaping future oversight policies across states.

Summary

CMS Administrator Dr. Mehmet Oz has publicly accused California of rampant hospice and home‑health fraud, claiming up to $3.5 billion in Los Angeles County alone and threatening to withhold Medicaid payments. Federal data, however, shows California recovers more than half of all Medicaid fraud recoveries nationwide, ranking fourth in dollars recovered per enrollee and outperforming most states. While hospice fraud is a documented problem in California, CMS clarified that not all billing cited by Oz is presumed improper and that investigations are ongoing. The dispute has escalated into a political clash, with Governor Newsom filing a civil‑rights complaint against Oz and Republican lawmakers joining the criticism of Democratic‑led states.