Dr. Oz Reveals Over $4 BILLION in California Hospice Fraud — “Minnesota is the Tip of the Iceberg”
The Minnesota fraud scandal rocked the nation. But, it’s just the beginning.
Because, it’s not just Minnesota.
Now, the Trump administration is starting to uncover the massive amounts of fraud happening in other states — like California.
President Trump’s CMS Administrator Dr. Oz says that the Minnesota Somali fraud scheme pales in comparison to what he saw happening in California.
He’s estimating that over $40 billion in fraud has been committed in Gavin Newsom’s state — and, that’s just within the hospice and home care sectors.
Watch what Dr. Oz had to reveal here:
🚨 DR. OZ: “What we’re seeing in Minnesota is the tip of the iceberg because it is dwarfed by what I saw in California, which is wholesale cultural malfeasance … The magnitude of fraud we believe is approximating $4 BILLION just in hospice and home health care.” pic.twitter.com/CeMUz8TV81
— Chief Nerd (@TheChiefNerd) January 18, 2026
Earlier this month, the Department of Justice launched an investigation into medical fraud in California.
Speaking at a press conference announcing the investigation, Dr. Oz gave more details on how the scam works.
Per The New York Post:
Billions of dollars in alleged fraudulent healthcare spending is being investigated in California, specifically probing foreign nationals operating illegal hospice facilities — officials announced Friday in a bombshell press conference.
“We have witnessed a sevenfold increase in hospice in LA County, sevenfold. That doesn’t happen naturally,” Dr Mehmet Oz, the administrator of the Centers for Medicare & Medicaid Services told The Post during at the press conference.
“There is not seven times more deaths in LA County than there were five years ago. These are fraudsters, and these do tend to be foreign influences, either Russian and Armenian gangs, mafia, that are leading a lot of these efforts.”
Fraudsters who run these facilities are working with about “100 bad doctors,” who convince a patient they’re dying to enroll them in hospice care, Dr Oz said, adding about 100,000 people have handed over their Medicare numbers.
“We are major focused on this issue, and I think our suspicion, our belief, is that the fraud in California will magnify whatever’s happening in Minnesota,” United States Attorney Bill Essayli said. “What’s happening in Minnesota pales in comparison to the level of fraud that we believe is occurring in California.”
Dr Oz said the Trump administration is also cracking down on taxpayer money being used to treat illegal immigrants for elective procedures.
“We’ve already identified about $1.3 billion of federal dollars spent to take care of illegal immigrants,” Dr Oz said. “The state is giving that money back.”
Hundreds of billions of dollars flow through California’s healthcare system, according to Essayli, who said $10 billion is for “illegal immigrant health care.”
“No federal dollars is supposed to be used for that,” said Essayli, who back in April launched a task force investigating corruption in the state, specifically focused on homelessness.
Absolutely infuriating.
If this is only hospice fraud, then can you imagine how much fraud in total must be going on in California? And, furthermore, in the entire nation?
Imagine how many Trillions of our debt is due to fraud.
— Southern FFA Family (@FFAFamily) January 18, 2026
These are our tax dollars being stolen by scammers and fraudsters…
Audit the entire system!
— God & Country (@GodandCountryy) January 18, 2026
Your thoughts?