Addressing Medicare and Medicaid Fraud: Federal Efforts and Challenges

The challenges posed by fraud within the Medicare and Medicaid programs have captured the attention of federal authorities. These programs operate as open-ended entitlements, creating difficulties in distinguishing between outright scams and aggressive, yet routine, billing practices. As of 2026, the Trump administration has acknowledged this crisis, focusing on identifying fraudulent activities and preventing abuse of taxpayer dollars.

On May 13, 2026, U.S. Administrator for the Centers for Medicare & Medicaid Services, Mehmet Oz, alongside Vice President JD Vance, addressed this issue during a press conference. Oz emphasized the federal government’s commitment to tackling healthcare fraud, asserting that their efforts aim to protect American families and patients. He revealed an estimated $100 billion is lost annually to fraud within Medicaid alone.

Significant actions have already been taken, such as the recent closure of 800 Los Angeles-based hospices. These facilities were allegedly involved in providing sham services, costing the system a staggering $1.4 billion last year. These closures are a part of broader initiatives labeled as ‘anti-fraud’ measures, showcasing the federal government’s determination to mitigate fraudulent activities in healthcare.

The publication of these efforts by the Manhattan Institute’s City Journal, known for its urban policy coverage, reflects an ongoing battle against systemic issues within these vital healthcare programs. The magnitude of fraud within Medicare and Medicaid demands vigilant oversight and continuous reform to safeguard public funds and support genuine healthcare needs effectively.