California hospice fraud scandal fuels GOP bid to flip key House seat

Amid mounting allegations of hospice fraud in California, Republican congressional candidate Jenny Rae Le Roux is pointing fingers at state leaders for failing to take action and allowing oversight gaps to escalate the issue.

Le Roux criticized California Gov. Gavin Newsom for not addressing the problem, despite the state’s role in licensing hospice providers and determining which organizations can enroll in the federal program. Newsom’s office pushed back on the accusations, stating that the state has no role in the Medicare billing or payment process and that enforcement falls under the responsibility of the federal government.

The issue of hospice fraud in California has gained significant attention, with reports of numerous hospices operating despite red flags and concerns about fraudulent practices. In response, the U.S. Attorney’s Office for the Central District of California recently arrested eight individuals in a healthcare fraud sting, uncovering a scheme that defrauded the health care system of more than $50 million.

Newsom and California Attorney General Rob Bonta announced measures to dismantle a large-scale identity theft and hospice fraud scheme targeting the Medi-Cal program in Los Angeles. The scheme involved 14 fraudulent hospice providers and resulted in over $267 million in improper claims paid with state and federal funds.

Le Roux, who is running for office in the GOP primary for the 47th Congressional District, criticized Newsom for what she deemed as a publicity stunt and called for broader changes to the state’s hospice oversight system. She emphasized the importance of fighting fraud and protecting taxpayer dollars, highlighting the need for accountability and transparency in government spending.

The anti-fraud task force led by Vice President JD Vance suspended hundreds of hospices and home health agencies suspected of fraud in Los Angeles, estimating total fraud at over $600 million. Le Roux’s organization, Cal DOGE, is actively investigating whistleblower tips to uncover potential fraud in California, taking a more aggressive approach than traditional oversight efforts.

Le Roux raised concerns about the scale of potential fraud in California, suggesting that tens of billions of dollars in fraud and waste occur annually. She emphasized the need for better oversight at the federal level to ensure that taxpayer dollars are spent responsibly and transparently.

As she continues her campaign for Congress, Le Roux is determined to bring her fight against fraud to the federal level and advocate for greater accountability in government spending. She believes that every dollar spent with taxpayer money should be made public, and she is committed to ensuring that funds are used effectively and ethically.

Fox News Digital reached out to Newsom’s office for comment on the matter.