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How Medicare Fraud Investigations Work, and Why Hospice Abuse Gets Extra Scrutiny

2026-10-21 — by Eleanor Stratton
CMS Administrator Dr. Mehmet Oz speaking at a public event.

Centers for Medicare & Medicaid Services (CMS) Administrator Dr. Mehmet Oz is putting the Trump administration’s anti-fraud push on camera in a new 27-minute film, War on Fraud.

The documentary follows Oz as he spotlights alleged schemes targeting taxpayer-funded health care programs and shows him on visits tied to investigations involving Medicare, Medicaid, hospice care and other programs.

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What the film covers

HHS Secretary Robert F. Kennedy Jr. at a public event.

War on Fraud tracks Oz as he highlights alleged fraud schemes and the administration’s efforts to crack down on those responsible. The film includes appearances from HHS Secretary Robert F. Kennedy Jr. and CMS Deputy Administrator Kim Brandt.

Oz states the message bluntly in the video: “Fraudsters and criminals don’t give a s--- about you. They want your money, and they will walk all over your health, sacrifice your life and betray society’s trust to get your hard-earned money,” Oz says.

The documentary is set to be released Wednesday at 4 P.M. ET on Oz’s X account.

New York crackdown

The exterior of the FBI New York Field Office building in Manhattan.

Oz also appears in footage tied to a surprise enforcement action involving Social Adult Daycares across New York City.

On Tuesday, Oct. 20, CMS, the FBI, NYPD and other agencies delivered letters and conducted searches at social adult daycares across the city. As part of the broader operation, more than 80 New York City providers received warning letters from CMS over questionable billing practices.

An FBI spokesperson described “law enforcement activity” across locations including Queens, Staten Island, Brooklyn and other places in New York City “in connection with ongoing federal investigations.”

What Oz flagged

During the New York City enforcement activity, Oz flagged what he described as irregularities that raised questions about Medicaid billing.

Those included:

  • Low attendance despite high Medicaid billing
  • Questionable wheelchair transportation charges
  • Seniors entering without signing in
  • Inconsistent attendance claims
  • Sign-in sheets containing future-dated entries

Hospice focus

In War on Fraud, Oz singles out hospice care as a recurring problem area. He points to the Los Angeles area, saying roughly 2,000 hospice providers operate there, a concentration he argues has raised serious concerns about fraudulent billing.

He alleges some suspected schemes involve patients being enrolled in hospice under false pretenses, including falsely declaring patients terminally ill and misleading them into enrolling. Oz says this can potentially limit access to treatment for conditions classified as terminal while allowing fraudulent operators to bill Medicare for services under false pretenses.

Oz also alleges Russian organized crime groups are involved in some suspected hospice fraud operations.

"Clubhouse for crooks"

A street scene in Flushing, Queens, New York.

The documentary also shows Oz during an earlier visit to Flushing, Queens, where he describes a cluster of businesses, including a social adult daycare center, pharmacy and medical center, as a “clubhouse for crooks,” alleging the businesses are part of a fraudulent billing operation.

Oz says they recruit seniors, get them in, game the system and they use their ID numbers to charge everybody, “which means they are charging you.”

$3.7B equipment case

The documentary highlights what federal prosecutors describe as one of the largest alleged Medicare fraud schemes in U.S. history, involving $3.7 billion in fraudulent billing claims tied to medical equipment companies operating in Delray Beach, Florida.

Federal prosecutors allege the scheme involved billing for medical equipment patients never requested or needed. The accused ringleader allegedly fled the U.S. before being captured in Turkey and returned to South Florida to face federal charges.

The wider push

Vice President JD Vance at an official public event.

The White House Task Force on Fraud, led by Vice President JD Vance, has joined Oz in a media blitz highlighting alleged scams as the administration ramps up its crackdown on corruption in taxpayer-funded programs.

Oz has also pointed to Minnesota’s $250 million “Feeding Our Future” scandal as a factor that helped intensify the administration’s focus on large-scale fraud, citing a case that erupted into the national spotlight in 2022 and has since produced a wave of federal convictions.

Quick answers

What happened in New York City?

On Tuesday, Oct. 20, CMS, the FBI, NYPD and other agencies delivered letters and conducted searches at social adult daycares across New York City. CMS also sent warning letters to more than 80 providers over questionable billing practices.

What does Oz allege about hospice fraud?

Oz points to the Los Angeles area, where he says roughly 2,000 hospice providers operate. He alleges some suspected schemes involve falsely declaring patients terminally ill and enrolling them under false pretenses, and he alleges Russian organized crime groups are involved in some suspected operations.

What is the Delray Beach case?

Federal prosecutors allege $3.7 billion in fraudulent billing claims tied to medical equipment companies operating in Delray Beach, Florida, including allegations that equipment was billed that patients never requested or needed.