The U.S. Department of Health and Human Services has opened an investigation into possible healthcare fraud in California.
“We've already identified about $1.3 billion of federal dollars spent to take care of illegal immigrants,” Dr. Mehmet Oz, who serves as Administrator for the Centers for Medicare & Medicaid Services, said. “The state is giving that money back.”
Dr. Oz also said scammers are using home health care and hospice to rip off the government for even more money.
“These fraudsters, and these do tend to be foreign influences, these are Russian Armenian gangs, mafia that are leading a lot of these efforts, we believe, have been able to corrupt and work with doctors who are willing to lie,” he said.
California isn’t the only state being investigated. Colorado, Illinois, Minnesota, and New York are also under investigation.
U.S. Attorney Bill Essayli said that among the states accused, California is the worst.
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“No one is making sure the money is actually being used where it's intended to use,” he said. “And not only do the fraudsters benefit, but the real people who need the money are losing. People who actually need access to quality healthcare are losing.”
Governor Newsom is pushing back against the investigation, saying he's blocked more than $125 billion in fraud since taking office.
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