Hospice fraud uses stolen identities for fake patients A $267 million Medi-Cal hospice fraud ring, Operation Skip Trace, has been uncovered, involving 21 defendants accused of using stolen personal information from the dark web to bill for fictitious end-of-life care. This sophisticated scheme exploits Medi-Cal and Medicare systems, making detection difficult as it doesn’t trigger credit alerts. Consumers are advised to monitor their statements for unusual activity and to utilize fraud alerts and credit monitoring services to prevent and mitigate potential identity theft.

• Operation Skip Trace uncovered a $267 million Medi-Cal hospice fraud ring involving 21 defendants.
• Scammers allegedly bought stolen personal information from the dark web to enroll individuals in Medi-Cal and list them as hospice patients.
• Shell hospice companies billed the state for care that was never provided, often to individuals who did not live in California or were not terminally ill.
• Hospice fraud is difficult to detect as it doesn’t typically trigger credit alerts or hard inquiries.
• Los Angeles County alone accounts for an estimated $3.5 billion in hospice fraud.
• California has revoked over 280 hospice licenses and placed a moratorium on new providers.
• Consumers should watch for warning signs like services listed on Medicare Summary Notices that were never received or Medi-Cal enrollment letters in their name.
• Reporting suspicious activity to relevant authorities and utilizing fraud alerts and credit monitoring services are recommended protective measures.