California authorities have charged 21 people in a scheme that allegedly used stolen identities to bill about $267 million in hospice services through the state’s Medicaid program.
Rob Bonta said five suspects have been arrested so far. Investigators allege the group bought personal data online and used it to enroll people who do not live in California into Medi-Cal.
The case began after the California Department of Health Care Services flagged possible fraud. Authorities said those involved bought 14 hospice companies and used them to submit claims under the stolen identities.
Prosecutors have filed charges including conspiracy to commit health care fraud, health care fraud, identity theft, and money laundering, along with added penalties tied to large-scale financial crimes.
“This isn’t a political game for us. This is about protecting taxpayer dollars, protecting the programs that sick and vulnerable Californians rely on, and protecting our state,” Bonta said.
Gavin Newsom said the state will continue to pursue similar cases.
“For years, California has led the charge to protect public programs from fraud and abuse. We hold accountable to the fullest extent of the law anyone who tries to rip off taxpayers and take advantage of public programs, particularly those as sensitive as hospice care,” Newsom said.
Data from the attorney general’s office shows that 119 hospice-related criminal cases have been filed during Bonta’s time in office, with 51 convictions so far.
The case comes as the Trump administration increases efforts to address fraud in federal benefit programs. Federal authorities recently announced more arrests tied to separate health care fraud cases in and around Los Angeles.
