Protect Yourself Against Hospice Fraud
Why Big Purchases Feel So Satisfying
When pickleball enthusiast Lynn Ianni suffered an injury in 2024, the active 69-year-old expected to be back on the court after some physical therapy. Imagine her surprise when she learned Medicare wouldn't cover physical therapy on account of her being in hospice.
"I said, 'What? What are you talking about?'" Ianni told CBS News in 2026.1 "'Are you kidding me? Do I look like I’m in hospice?'"
Someone had stolen Ianni's Medicare number and fraudulently enrolled her in hospice. As shocking as the phrase "hospice fraud" may be, Ianni's story – and her delayed care as a result – are becoming far too common. In 2026, a hospice industry advocate tearfully told California legislators about a woman who died when hospice fraud delayed life-saving care.2
The U.S. Centers for Medicare & Medicaid Services (CMS), has sounded the alarm about widespread fraud among the $27 billion Medicare pays out to hospices annually.3 Since December 2025, the agency has put 817 hospices under medical review and revoked the Medicare enrollment of 182.
Everyone with a Medicare number, and those who love them, should understand the signs of hospice fraud, how it works and how to protect themselves and others.
What Is Hospice Fraud?
Hospice fraud occurs when a scammer enrolls a Medicare recipient in a hospice, even though the victim does not need end-of-life care.4 They then bill Medicare for services the victim does not receive.
In some cases, the scammer covertly steals the victim's Medicare number and secretly enrolls them in hospice. Other scammers convince victims to enroll in hospice when they don't really need it.
How Does Hospice Fraud Work?
Unlike cybercrime rings that can be globally distributed, hospice fraud typically requires perpetrators to have a physical location in the U.S. so they can be licensed and bill Medicare. A CBS News investigation found 1,800 registered hospice facilities in L.A. County alone, a 1,500% increase since 2010.1 CBS News visited a neighborhood with 137 registered hospices and found many of their physical addresses empty.
Maintaining these multiple entities is an organized criminal enterprise of its own, with the scammers engaging in a practice called "license flipping" to quickly open a hospice just long enough to commit lucrative fraud before abandoning it to open another.5 The criminals behind the abandoned offices are operating in one of two ways:
The scammers use stolen Medicare numbers to enroll victims in hospice without their knowledge. They then bill Medicare for services the victim does not receive.
The perpetrators use predatory marketing to trick elderly victims into sharing their Medicare numbers willingly. The victims are often offered free in-home cooking, cleaning, or other perks if they enroll in hospice care. After enrolling, the victims often do not receive anything, but the scammer bills Medicare.
Financially, taxpayers collectively bear the burden of hospice fraud, but the victims are harmed as well. Victims often discover the fraud when, like Ianni above, they need services Medicare doesn't cover for patients in hospice. The delay in accessing care that can occur can have serious health consequences for the elderly victims. In Ianni's case, for example, she spent six months without access to her Medicare coverage — all while dealing with an injured shoulder. 2
Overall, it’s a little-known crime that isn’t new but has started to gain attention despite efforts to squash it. In 2020, an Atlanta-based hospice company agreed to pay $1.75 million in allegations that it billed Medicaid and Medicare for non-terminal patients who were certified for years without showing signs of declining health.14
If anyone asks you for your Medicare number or says they need it for part of a service they offer, treat it like a red flag.
How To Protect Yourself from Hospice Fraud
While CMS has announced a crackdown on hospice fraud, Medicare recipients should remain vigilant for the foreseeable future.3 The CBS News investigation found that 700 of L.A. County's 1,800 hospices trigger multiple red flags for fraud as defined by the State of California.1
To stay safe, elderly people and their loved ones should take the following precautions:
- Protect a Medicare number like it's a Social Security or bank account number. Carefully vet any provider who asks for it to ensure they are legitimate.6
- If someone offers free in-home services, like cooking or cleaning through Medicare, assume it is a scam. Medicare does not cover such services. Watch for these claims in texts and emails, as well as from door-to-door scammers.
- Similarly, do not accept any offers of money, gift cards, or groceries in exchange for signing up for hospice.
- Turn away anyone offering Medicare services door-to-door. Medicare does not enroll people that way.
- Review all explanation of benefits statements and Medicare Summary Notices and watch for unknown providers and services.4
- When looking for hospice care or to vet any new providers, use Medicare Care Compare to see quality scores and contact information — and to pre-screen all potential providers.7
What To Do If You're a Victim of Hospice Fraud
The degree of hassle and pain for victims of hospice fraud can vary based on when and why they realized they've been victimized. A proactive Medicare recipient who notices something amiss on their statement of benefits may have time to report the issue and clear it up before medical care delays become an issue. However, patients who discover the fraud in the course of being denied Medicare coverage for urgent medical care may have a more challenging road ahead. In either case:
- Report the fraud to Medicare immediately by calling 1-800-MEDICARE (1-800-633-4227) or report Medicare fraud online.8
- File a report with the FBI's Internet Crime Complaint Center.9
- Look for local support resources with the U.S. Department of Health and Human Services' Senior Medicare Patrol National Resource Center.10
- Find government agencies, programs and nonprofits available to assist with elder fraud by state at the Department of Justice's Elder Justice Neighborhood Resources.11
- Search for specific services like identity theft counseling, emergency financial assistance and support groups at the DOJ's Office for Victims of Crimes Directory of Crime Victim Services.12
If needed, find an attorney who specializes in providing quality legal services to older clients and people with disabilities at the National Academy of Elder Law Attorneys.13
Falling victim to hospice fraud can be a devastating event. As with all cases of fraud, victims should be encouraged to seek both legal and emotional support as they seek to recover. In addition to the steps above, review the guidelines in our story, "What to Do if You Are a Victim of Fraud," to find the support you need.
-
Is Cybercrime Draining Elders’ Retirement Accounts, Preventing the Great Wealth Transfer?
How bad actors are targeting baby boomers and draining accounts.
-
Why Scammers Target Victims of Previous Fraud for Their Next Score
Bad actors often target fraud victims for a second scam on purpose.
Important disclosure information
Asset allocation and diversifications do not ensure against loss. This content is general in nature and does not constitute legal, tax, accounting, financial or investment advice. You are encouraged to consult with competent legal, tax, accounting, financial or investment professionals based on your specific circumstances. We do not make any warranties as to accuracy or completeness of this information, do not endorse any third-party companies, products, or services described here, and take no liability for your use of this information.
- Rachel Gold, et al, "We visited “ground zero” for hospice fraud: Los Angeles, California," CBS News, published March 10, 2026. Accessed August 11, 2026. Back
- Ana B. Ibarra, "Sham hospice schemes are bilking Medicare — and harming California seniors," CalMatters, published April 29, 2026. Accessed August 11, 2026. Back
- Center for Medicare & Medicaid Services, "Hospice Fast Facts," published January, 2026. Accessed August 11, 2026. Back
- Federal Bureau of Investigation, "Emerging Hospice Fraud Targeting Medicare Recipients," FBI Public Service Announcements, published June 3, 2026. Accessed August 11, 2026. Back
- Holly Vossel, "CMS, DOJ ‘Aggressively’ Cracking Down on Hospice Fraud," Hospice News, published January 12, 2026. Accessed August 11, 2026. Back
- Kira Krown, "You heard that correctly: Scammers are committing hospice fraud," Federal Trade Commission Consumer Alerts, published December 13, 2024. Accessed August 11, 2026. Back
- Medicare Care Compare, accessed August 11, 2026. Back
- U.S. Department of Health and Human Services, "Report Fraud, Waste, and Abuse," accessed August 11, 2026. Back
- Federal Bureau of Investigation Internet Crime Complaint Center. Accessed August 11, 2026. Back
- U.S. Department of Justice, "Find Help or Report Abuse," accessed August 11, 2026. Back
- U.S. Department of Justice, "Elder Justice Neighborhood Resources," accessed August 11, 2026. Back
- Office for Victims of Crime, "Directory of Crime Victim Services," U.S. Department of Justice. Accessed June 17, 2026. Back
- The National Academy of Elder Law Attorneys, "Find a Lawyer," accessed June 17, 2026. Back
- “Hospice to pay $1.75 million to resolve false claims act allegations,” Justice.gov, published Marh 4, 2020. Accessed August 11, 2026. Back