Healthy California seniors trapped in fake hospices as $3.5B Medicare fraud scheme exposed

Land of milk and honey? More like fraud and funny money.Federal officials estimate Los Angeles County alone accounts for $3.5 billion in fraudulent hospice claims as more victims come forward with stories of abuse.Fraudsters have allegedly created fake hospices, stolen identities and enrolled people in end-of-life care to bill Medicare.The scam can have serious consequences for victims.Because hospice is intended for terminally ill patients, Medicare generally won’t pay for medical treatment outside hospice once someone is enrolled.At 71 and recently retired, Linda Henry thought she was in good health.Then in 2024, she discovered Medicare records said she had heart failure — and that she had been enrolled in hospice, despite never signing up.That meant Henry’s regular medical care was suddenly in jeopardy.

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By clicking above you agree to the Terms of Use and Privacy Policy.Never miss a story She discovered the problem after her doctor tried to bill Medicare for an allergy test in September 2024 and the claim was denied.

Other medical claims soon bounced back too.Henry spent months calling Medicare and emailing officials while her doctor provided a letter saying she was healthy.She was allegedly enrolled with Fortuna Hospice Inc., which didn’t answer her calls.When Henry drove to the address listed for the company, she found what appeared to be an empty office.“I delayed physical appointments and my colonoscopy and all this stuff because I knew that we were going to fight about this and it wasn’t going to get paid,” she told the AP.Eight months later, Medicare finally recognized Henry as a fraud victim.

It took another four months before she began seeing doctors again.California has been a major target of the federal crackdown as The California Post has reported.The state had about 2,...