House Oversight Chairman James Comer is raising serious alarm over what he describes as massive Medicaid fraud in California, pointing to a shocking state audit and a whistleblower who alleges Gov. Gavin Newsom was aware of the problem.
“A state audit CONFIRMED there is at least $3.5 billion in hospice fraud in one county—Los Angeles County,” Comer said, calling the findings a glaring example of failed oversight.
According to Comer, that staggering figure represents more than 10% of the total amount the federal government spends on hospice care nationwide—raising urgent questions about how such large-scale abuse could go unchecked.
“So the red flags are there. There was rampant fraud,” Comer said. “There is a whistleblower that came forward, alleging Newsom knew about it.”
The allegations suggest a deeply troubling breakdown in accountability within California’s healthcare system, with critics arguing that state leadership failed to act despite clear warning signs. Comer also drew comparisons to other states facing similar fraud concerns, signaling this could be part of a broader nationwide issue.
Newsom’s office has not confirmed the whistleblower claims, and no formal finding has established that the governor had direct knowledge of specific fraudulent activity. However, the scale of the alleged fraud—and the existence of prior audit warnings—are expected to intensify scrutiny on California’s handling of taxpayer-funded healthcare programs.
With billions potentially lost and patient care at risk, calls are growing for a full federal investigation into how the system was exploited—and who, if anyone, allowed it to happen.
