California and the federal government battle over hospice fraud, as victims lose coverage and care

California and federal authorities are engaged in a conflict regarding widespread hospice fraud, a situation that has resulted in vulnerable patients losing essential medical coverage and care. The issue came to light as investigators uncovered schemes involving the exploitation of Medicare beneficiaries, including individuals who were not terminally ill.

One documented case involves Linda Henry, a 71-year-old Southern California resident who discovered in 2024 that she had been fraudulently enrolled in hospice services despite being in good health. This case highlights the broader systemic impact of fraudulent billing practices, which jeopardize the stability of hospice care for legitimate patients while compromising the integrity of federal healthcare programs.