California Attorney Rob Bonta appears to finally be honing in on medical fraud after federal pressure — digging up more than a quarter of a billion dollars in faulty services billed to Medi-Cal and Medicaid.
The top state prosecutor says investigators caught 14 fraudulent hospice companies who had billed Medi-Cal and Medicaid for $267 million in non-existent services after they received a tip from the California Department of Healthcare Services.
“Over the life of this fraud scheme, not a single legitimate hospice service was ever provided, yet millions were billed in a brazen, calculated scheme that exploited the Medi-Cal system, stole from the state of California and Medicaid and prevented services and care from going to sick individuals who actually need it” Bonta said at a press conference Thursday.
“This wasn’t a mistake or a loophole; it was deliberate fraud. This kind of abuse undermines trust, drains critical resources, and threatens care for those who truly depend on it,” he added.
California AG Rob Bonta appears to finally be honing in on fraud after federal pressure. Jonathan Alcorn For CA PostBonta’s office filed felony criminal charges against 21 suspects for the healthcare fraud crimes.
He insisted, as the state faces extensive criticism for the alleged widespread healthcare fraud, that his office alone worked on the case. Bonta also noted that they were looking into fraud “before certain people in this country decided to think about it for the first time.”
Robert Sabiron Rubillar and Liezyl Rubillar, the chief executive officer and chief financial officer of Legal Systems Billing Solutions, helped organize the scheme, according to prosecutors.
A criminal complaint alleged the two submitted claims to Medi-Cal for Cherish Hospice Inc., Emanuel Hospice and Azure Hospice Care Inc.. They were charged with conspiracy and insurance fraud for allegedly submitting the faulty claims.
“This is just the latest example of the California DOJ’s long standing ongoing and successful efforts [against] hospice and Medi-Cal fraud. We have been doing this work for years. We’ve been doing it successfully before certain people in this country decided to think about it for the first time,” Bonta said.
Bonta announced a $267 million hospice fraud scheme, with a sign detailing 21 suspects and 14 fraudulent companies. Jonathan Alcorn For CA Post
Bill Essayli blasted Bonta earlier for the widespread fraud in California. Jonathan Alcorn For CA Post“I also want to make clear: This is our case, a California case, from beginning to end, my office worked on it.”
Following Bonta’s announcement, Assembly Republican Leader Heath Flora called for a special session on fraud across state programs.
“Let’s be honest. This latest announcement from the Attorney General is not proactive. It shows how large this problem became before it was stopped,” he said.
“The question is simple: why did it take so long to get here? This is not limited to one program. We’ve seen serious concerns in hospice, Medi-Cal, high-speed rail, homelessness spending, and in-home health services, to name a few. Same pattern every time. Money goes out. Oversight doesn’t keep up,” Flora added.
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