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Gavin Newsom Faces Scrutiny Over $3.5B Hospice Fraud Hurting Seniors

New reporting has shoved a very messy truth into the daylight: federal officials say roughly $3.5 billion in hospice and home‑health billing tied to Los Angeles County looks suspicious, CMS publicly named the problem, federal prosecutors moved with arrests, and the House Oversight Committee has asked Governor Gavin Newsom for records. That’s the concrete development — not just hearsay or a headline — and it raises a simple question: who is Sacramento really protecting, seniors or bad actors?

What the $3.5 billion claim means

CMS Administrator Dr. Mehmet Oz put a number on the problem and people noticed. A $3.5 billion estimate at the county level is big enough to stop you in your tracks. Even if the math behind that number needs fine tuning, the core fact is clear: concentrated clusters of hospice billing drew red flags, and CMS followed with suspensions and tighter rules. When an agency goes public and federal prosecutors bring indictments, this isn’t an academic debate — it’s a public‑safety and taxpayer problem.

Congress steps in and Newsom gets a subpoenaed clipboard

The House Oversight Committee formally asked Governor Gavin Newsom for documents. That request is not theater — it’s oversight. Congress wants to know what California knew, when it knew it, and who in Sacramento may have been asleep at the wheel. Instead of leading, Newsom rolled out a civil‑rights complaint and talking points about state action. Fancy press releases don’t fix Medicare denials, but they make good soundbites for photo ops.

State arrests, revocations, and the limits of spin

California did announce criminal charges and license revocations, and Attorney General Rob Bonta called the schemes “brazen” and said no legitimate hospice services were provided in some cases. Those steps matter. But the state’s numbers and timing don’t erase the fact that victims lost care, were put on hospice without consent, and waited months to get it straightened out. When officials brag that “Donald Trump can’t pardon” state defendants, you know the messaging team is working hard to change the subject from the victims.

Seniors are the real story — demand answers now

People like Linda Henry, who allegedly had hospice care assigned without her knowledge, paid the price in lost medical care and stress. That’s the human cost of lax oversight. The next move should be simple: full cooperation with the House Oversight request, public release of the data behind the $3.5 billion figure, and faster remedies for victims. If Sacramento wants to keep playing politics, seniors will keep losing their health — and taxpayers will keep footing the bill for fraud.

Written by Staff Reports

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