Protecting Patients and Safeguarding Taxpayer Dollars: The Role of CMS in Combatting Medicare and Medicaid Fraud

Benefits Fraud and Improper PaymentsHouse Energy and Commerce Subcommittee on Oversight and Investigations · 2026-03-17 · 119th Congress
The Energy and Commerce Subcommittee on Oversight and Investigations convened this hearing to examine CMS efforts to combat fraud in Medicare and Medicaid, including in durable medical equipment, genetic testing, skin substitutes, home health, and hospice. Begins at 0:13:22
Transcript
Highlights

Title

CMS oversight hearing on Medicare/Medicaid fraud and state Medicaid funding cuts

Purpose

The Energy and Commerce Subcommittee on Oversight and Investigations convened this hearing to examine CMS efforts to combat fraud in Medicare and Medicaid, including in durable medical equipment, genetic testing, skin substitutes, home health, and hospice. Deputy Administrator and COO Kimberly Brandt testified about CMS's data-driven detection tools, while Democrats focused heavily on CMS's funding actions against Minnesota and other Democratic-led states, questioning whether fraud enforcement was being used for political retaliation. Begins at0:13:22

Who spoke

Chairman David Joyce (R-OH), Subcommittee Chair0:13:22: Opened by describing widespread Medicare/Medicaid fraud across DME, genetic testing, skin substitutes, home health, hospice, and Medicaid transportation and personal care services0:13:45; later questioned Brandt on LA hospice fraud, recovery rates on fraudulent payments (~10%)0:41:19, and thanked her for CMS's vigilance0:42:11.

Rep. Yvette Clarke (D-NY), Ranking Member0:17:44: Said CMS was withholding roughly $2 billion in Minnesota Medicaid funding over 14 services and expanding investigations to California, Maine, New York, and Florida, calling it politically motivated targeting of Democratic-led states0:18:16; pressed Brandt on who at CMS chose which states to investigate and the timeline of Minnesota's stalled hearing request0:42:400:45:03.

Rep. Brett Guthrie (R-KY), Full Committee Chair0:23:05: Argued fraud enforcement should be bipartisan, noting Florida (a Republican state) and Nebraska are also under CMS scrutiny0:24:08; cited a $3.4 million DME fraud case involving a Russian national0:24:36.

Rep. Frank Pallone (D-NJ), Full Committee Ranking Member0:25:57: Accused the administration of undermining fraud enforcement by firing HHS Inspector General Christi Grimm and pardoning fraudsters, while cutting nearly $1 trillion from Medicaid in reconciliation0:26:240:22:10; alleged CMS was withholding funds from Minnesota, California, Maine, and New York for political reasons0:27:46.

Kimberly Brandt, CMS Deputy Administrator and COO0:31:39: Testified CMS oversees care for 170+ million Americans and $1.8 trillion in spending0:31:39; described a Los Angeles hospice raid finding malnourished residents while owners billed $6,000/month per resident0:32:33; said CMS's Fraud Defense Operations Center stopped over $2.1 billion in payments across 350+ providers in the past year0:36:02; said fraud recovery rates are only about 10%0:41:19; confirmed a Minnesota audit found a 131% rise in adult companion service providers with a 234% payment increase against just 24% beneficiary growth0:43:10; said New York's per-beneficiary Medicaid spending is 36% above the national average1:02:25; said she was not consulted on President Trump's pardons of Medicare fraudsters1:09:01; said she was not involved in DOGE's posting of a CMS Medicaid dataset2:37:48.

Rep. Kevin Mullin (D-CA)1:13:33: Questioned whether CMS analyzed how many seniors, children, or people with disabilities would lose care before withholding Minnesota funds1:14:00, and raised concern about a similar investigation opened into California's Medi-Cal program1:15:01.

Rep. Diana Harshbarger (R-TN)1:17:44: Asked about CMS's authority to suspend suspicious payments before they go out and to compel state recoupment of fraudulent Medicaid payments1:18:141:18:44; asked which provider categories see the most fraud, with Brandt citing genetic testing, hospice, home health, and DME as the "big four"1:22:30.

Rep. Lori Trahan (D-MA)1:04:21: Questioned why Trump fired the HHS Inspector General and left the post vacant for nearly a year1:04:50; listed Trump pardons/commutations for Medicare fraudsters including Lawrence Duran ($87 million) and Philip Esformes ($1.3 billion)1:06:501:07:14.

Rep. Rick Allen (R-GA)1:08:33: Asked Brandt to describe harm to legitimate beneficiaries from fraud, such as improper denials tied to fraudulent claims on medical records1:09:551:10:50.

Rep. Kevin Mullin (D-CA) — see above.

Rep. Young Kim / "the other Mullen" (R-OK region jest): [Note — self-identified only as "Mullen" from California in banter; insufficient identification to summarize substantively; see transcript 1:13:03.]

Rep. Troy Balderson (R-OH)2:29:43: Asked about provider verification tools like fingerprinting and site visits, and CMS's Netflix-like risk algorithm for flagging high-risk enrollees2:30:152:30:45; raised billing for deceased or incarcerated patients and asked about CMS's cross-checks against death records2:31:352:32:25.

Rep. Marc Molinaro/Weber (R-TX)0:58:37: Asked about $65 million in fraudulent genetic testing claims in Texas and how CMS educates elderly beneficiaries about scams0:59:071:00:23.

Rep. Suzan DelBene/Marilyn Strickland (D-WA), Dr. Schrier2:45:43: Argued fraud enforcement is being weaponized against Democratic states, cited Trump's firing of 17 inspectors general and pardons of convicted Medicare fraudsters (Duran, Esformes, and a Florida Medicaid fraud group), and raised concerns about the CMS "WISeR" AI prior-authorization pilot potentially denying care to seniors2:46:592:50:27.

Rep. Greg Landsman (D-OH)2:51:22: Raised a constituent bill on Medicaid coverage for epidermolysis bullosa (EB) wound-care bandages, asking Brandt about costs and a potential pilot program to study hospitalization-prevention savings2:52:372:53:03.

Rep. Mariannette Miller-Meeks/Buddy Carter (R-GA)2:40:19: Discussed rapid growth in skin substitute billing, said CMS's new payment structure produced a 99% reduction in skin substitute billing since January 12:42:58, and promoted his Skin Substitute Access and Payment Reform Act2:44:24.

Rep. Kim Schrier (D-WA) — see above, addressed separately from Landsman if distinct; retained as listed.

Rep. Paul Tonko (D-NY)2:20:36: Pressed Brandt repeatedly on Vice President Vance's actual authority over CMS anti-fraud efforts, noting DOJ told a federal court Vance "holds no delegated Medicaid related authority" while Trump and Oz publicly framed him as leading the anti-fraud effort2:21:232:22:13.

Rep. Bruce Folger (Idaho delegation)2:26:02: Asked about DOJ clawback of fraud proceeds (including treble damages) and bank reporting obligations for suspicious activity2:26:262:27:25.

Rep. Lizzie Fletcher (D-TX)2:35:11: Raised concerns about DOGE posting a CMS Medicaid provider spending dataset without guardrails and Social Security data misuse allegations, asking whether Brandt approved or assisted the DOGE data posting2:37:212:37:48.

Key moments

Brandt said a Los Angeles residential home was paid $6,000/month per resident ($36,000 total for six residents) for hospice services never rendered, with residents found malnourished and living in unclean, moldy conditions0:33:01.

Brandt disclosed CMS's fraud recovery rate on fraudulent payments is only about 10%, prompting the shift to a "stop and verify" prepayment approach0:41:19.

A CBS News investigation cited by Chairman Joyce found 89 hospice organizations registered to a single Van Nuys address, with 700 of roughly 1,800 LA County hospices triggering multiple state fraud red flags and 42% of flagged hospices still operating0:38:120:38:39.

Brandt confirmed CMS's Fraud Defense Operations Center stopped over $2.1 billion in Medicare payments across 350+ providers in the past year, and that catheter fraud interception exceeded 90% before payments went out0:36:021:53:18.

Rep. Pallone and Rep. Trahan detailed Trump pardons/commutations of convicted Medicare fraudsters — Lawrence Duran ($87 million), Philip Esformes ($1.3 billion), and a five-person Florida Medicaid fraud group ($35 million) — with Brandt confirming she was not consulted1:06:501:07:141:09:01.

Rep. Tonko pressed Brandt on a contradiction: DOJ told a federal court Vice President Vance "holds no delegated Medicaid related authority," while Trump and Administrator Oz publicly cast Vance as leading the anti-fraud effort; Brandt maintained CMS alone makes "data driven and fact based" state-selection decisions2:21:232:25:06.

Brandt said a new payment structure effective January 1 produced a 99% reduction in skin substitute billing without a corresponding rise in beneficiary complaints about lost access2:42:58.

Rep. Fletcher asked whether Brandt approved DOGE posting a CMS Medicaid provider-spending dataset on X without clear guardrails; Brandt said she was not involved in its collection or posting2:37:48.

Brandt said recent enrollment screening in California resulted in 60% of 177 newly enrolled hospices being revoked within six months, with 35% of the remainder subject to corrective action0:34:52.

Rep. Clarke noted CMS had not scheduled Minnesota's requested hearing on withheld funds since January 9, and Brandt attributed the delay to litigation the state initiated against the agency0:45:030:45:21.

Metadata

CommitteeHouse Energy and Commerce Subcommittee on Oversight and Investigations
Chamber / CongressHouse · 119th Congress
Date2026-03-17
TypeHearing
Witnesses
Ms. Kimberly Brandt — Deputy Administrator and Chief Operating Officer, U.S. Centers for Medicare and Medicaid Services
Videoyoutube
Transcript243 caption blocks · 18,380 words · 2:56:06 runtime
EventCongress.gov 119065