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[POLITICS] · United States · 3 sources

California Department of Health Care Services flagged for Medi-Cal fraud risk

A report by California State Auditor Grant Parks has classified the Department of Health Care Services as “high-risk” for fraud, waste, and abuse within the Medi-Cal program. The program, which serves approximately 14 million residents and pays out $200 billion annually, faces significant oversight concerns.

The auditor noted that out of 28,000 Medi-Cal providers identified as being at the highest risk for fraud or abuse, the Department has yet to begin investigations into 26,000 of them. Specific instances of alleged abuse include two medical providers billing nearly $1.6 million in 2024-25 despite being ineligible, and a transportation provider receiving over $11 million in the same period despite highly improbable mileage claims.

The Department of Health Care Services disputed the findings, stating the report “omits critical information and context, resulting in an incomplete analysis” and relies on “isolated anecdotes” rather than system-wide data.

Entities

California Department of Health Care Services · Grant Parks · Medi-Cal

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