Daijiworld Media Network - Washington
Washington, May 14: US Vice President J D Vance on Wednesday unveiled an aggressive new campaign against alleged Medicaid and Medicare fraud, accusing several Democratic-led states of failing to adequately monitor misuse within federally funded healthcare programmes.
Speaking at the White House alongside senior officials involved in the administration’s anti-fraud initiative, Vance said the federal government would defer nearly $1.34 billion in Medicaid reimbursements to California while pressing the state to strengthen enforcement measures against fraudulent claims.
The Vice President criticised California’s handling of fraud investigations, stating that the administration expects stricter oversight and accountability from state authorities.
Vance also announced that letters were being sent to Medicaid agencies in all 50 states directing them to demonstrate that they are actively and effectively prosecuting healthcare fraud cases. States that fail to meet federal expectations could face suspension of anti-fraud funding support from Washington, he warned.
During the announcement, Vance argued that widespread fraud weakens public trust in welfare programmes and diverts resources away from vulnerable citizens who genuinely depend on government-funded healthcare.
Mehmet Oz, widely known as Dr Oz, claimed federal investigators had identified serious irregularities in California’s Medicaid billing system.
According to Oz, investigators found approximately $630 million in suspicious billing linked to providers identified as extreme outliers in the system. He said the billing patterns raised concerns over the volume of patients and the scale of claims submitted.
Oz also revealed what officials described as the largest hospice fraud enforcement action in US history. Authorities have reportedly suspended around 800 hospice providers operating in the Los Angeles region after uncovering suspected fraudulent practices.
He alleged that nearly half of the hospice providers in the area could be involved in fraudulent activity and stated that the suspended facilities collectively billed the federal government nearly $1.4 billion last year.
As part of the broader enforcement drive, the administration has imposed a nationwide freeze on approvals for new hospice and home healthcare providers while federal agencies review licensing standards and oversight systems.
Andrew Ferguson, who leads the anti-fraud task force, accused some states of treating anti-fraud programmes as political patronage systems instead of enforcement mechanisms.
Meanwhile, Kim Brant, a senior official overseeing the Medicare fraud “war room,” said authorities have already blocked more than $2 billion in suspicious payments over the past year by analysing claims before federal funds were released.
Vance also linked the issue to broader immigration and fiscal policy debates, alleging that undocumented immigrants in certain states were benefiting from taxpayer-funded healthcare services.
The administration of President Donald Trump has made anti-fraud enforcement a major domestic policy priority during its second term, arguing that reducing waste, abuse, and improper benefit payments is essential for preserving the long-term sustainability of Medicare and Medicaid programmes.