CBS News did an analysis on hospice fraud in Los Angeles. It starts with the story of 69-year-old Lynn Ianni, “a pickleball whiz, zipping from dinks to drives energetically.”
Two years ago, Ianni suffered an injury on the court and Medicare insurance denied her coverage because, according to their records, she dying in hospice.
“They said, ‘you’re in hospice.’ And I said, ‘what? What are you talking about?” Ianni said. “‘Are you kidding me? Do I look like I’m in hospice?’”
Ianni’s Medicare number had been stolen and used by a company that enrolled her in hospice.
CBS News reports:
Medicare is federally administered, and hospices must be certified for reimbursements. But the state issues the licenses for hospices to operate.
Three years ago, California’s state auditor sounded the alarm that Los Angeles County had seen a 1,500% increase in hospice companies since 2010 – more than six times the national average relative to its elderly population.
Auditors estimated LA County hospices overbilled Medicare by $105 million in a single year. The report called out notable red flags – key warning signs of fraud:
The state says it proceeded to investigate and revoke the licenses of 280 hospices.
CBS News found that indications of fraud in LA County hospices have increased since the problem was first identified.
The CBS News analysis found over 700 LA County hospices that trigger fraud red flags.
California is facing this public services fraud problem as Governor Newsom considers a presidential run. Republicans and social media influencers have been highlighting the issue, citing the Feeding our Future scam in Minnesota.
Newsom’s office responded to an inquiry about the findings, with a spokesperson sanding CBS News a January 2026 statement, which reads in part, “Under Governor Newsom’s administration, California has cracked down on hospice fraud, launched partnerships across state agencies, and the California Department of Justice has arrested criminals to hold them accountable.”
CALIFORNIA HOSPICE FRAUD: There’s a stretch in Los Angeles with 500 registered hospice companies within just three miles of each other. And 89 in a single building. But when we visited, we found empty offices, piled-up mail, and phone lines dead.
Watch CBS News’ exclusive… pic.twitter.com/ydb8v0RqxE
— CBS News (@CBSNews) March 10, 2026
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Read more at CBS News
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