California authorities have filed felony charges against 21 people in connection with an alleged hospice fraud scheme that officials say cost the state $267 million.
The announcement was made on Thursday by California attorney general Rob Bonta. According to authorities, the suspects are accused of orchestrating a complex operation involving hospice companies and the state’s Medi-Cal health program.
Investigators say the group allegedly bought 14 hospice companies and used stolen personal information to fraudulently bill the state health plan. The suspects are said to have obtained personal identifying information for people who were not residents of California by purchasing it from the dark web.
That information was allegedly used to enroll stolen identities in Medi-Cal, the state program that provides low-income residents with free or low-cost health care. Officials say the scheme allowed the defendants to submit false claims tied to hospice services.
The case centers on accusations of organized fraud against a public health system that serves some of the state’s most vulnerable residents. The charges mark a major step in a wider investigation into alleged abuse of hospice billing and patient enrollment.
Authorities have not provided additional details in the source about the individual defendants beyond the fact that 21 people are facing felony charges. The allegations remain accusations, and the legal process is ongoing.
The reported $267 million loss underscores the scale of the case and the financial damage officials say resulted from the scheme. California’s attorney general’s office has not, in the source provided, said how much of the money may have been recovered or whether more charges could follow.
Hospice care is intended for patients with serious or terminal illness, and the alleged misuse of that system has raised concerns about fraud in programs designed to protect public health. In this case, authorities say the suspects turned that system into a vehicle for billing abuse by using identities that were unlawfully obtained.
The felony charges represent the latest development in the investigation, which officials say involved a network of people and businesses tied to the purchase of hospice companies and the exploitation of Medi-Cal enrollment.
