JD Vance speaks alongside Centers for Medicare and Medicaid Services head Mehmet Oz during a press conference on “anti-fraud initiatives” in Washington, D.C., on May 13, 2026.Photo: Kent Nishimura/AFP via Getty Images
For <a href="https://healthylife7.com/gops-fauci-witch-hunt-is-more-than-just-bad-political-theater/” title=”GOP's Fauci witch hunt is more than just bad political theater”>more than a year, the Trump administration has sought to blame immigrants for widespread health care fraud. Immigrant communities, the Trump administration’s bunk theory goes, are draining re
The spurious allegations played a key role in Donald Trump’s massive — and deadly — immigration crackdown in Minnesota over the winter
A semiannual report from the Department of Health and Human Services’ Office of Inspector General to Congress, however, highlights a different narrative
The report, which covers enforcement actions over a six-month period, highlights the obvious: Corporations — not small immigrant-oriented healthcare providers, or undocumented immigrants illegally taking benefits — are responsible for the vast majority of alleged fraud in the American health care system
Released earlier this month, the report highlights billions of dollars’ worth of healthcare fraud from corporate executives
One CEO ran a scheme to target Medicare beneficiaries with medically unnecessary medical devices. An insurance broker and marketing executive orchestrated an Affordable Care Act enrollment scam that preyed on vulnerable people experiencing homelessness and substance abuse
While C-suite fraudsters are the stars of the congressional report and most credible research on the topic, immigrants are at the cynosure of the administration’s public fraud campaign
Freeing Actual Fraudsters
Experts on immigrant rights and healthcare say the administration is using immigrants as a scapegoat for systemic fraud in the healthcare system that can be attributed to corporate greed, while shielding actual bad actors who profit from a broken system
“There isn’t really clear evidence of any systemic issues implicating immigrants,” said Sarah Krieger, senior policy counsel at the National Immigration Law Center. “The administration’s public messaging is focusing on immigrants and immigrant workers, but that’s constructing a narrative with the intent of hurting immigrants, not with actually rooting out any problems.”
Krieger pointed to examples of the Trump administration using clemency and pardons to get corporate healthcare fraudsters off the hook
In May, President Donald Trump granted clemency to Lawrence Duran, the owner of a mental health company, American Therapeutic, who was sentenced to 50 years for “orchestrating a $205 million Medicare fraud scheme.”
An analysis by the California governor’s office found that Trump’s pardons had wiped nearly $2 billion in victim repayment and taxpayer recovery for Medicare and tax fraud, as well as other types of fraud
Trump Focus on Immigrants
Though immigrants aren’t mentioned once in the report itself, they have been the relentless focus of the Trump administration
In May, Vice President JD Vance and Mehmet Oz, a television doctor who is now head of the Centers for Medicaid and Medicare Services, hosted an anti-fraud press conference
At the event, Vance erroneously warned that “there could be tens of billions of fraudulent payments in the California system” going toward “illegal aliens, going to fraudulent businesses.” Oz — best known for promoting diet pills — similarly claimed that hundreds of millions of dollars of “questionable expenditures” were linked to “immigration-related costs,” and that “folks who are undocumented” were fraudulently getting access to Medicaid funds in California
The language is par for the course from administration officials. Later that month, deputy White House chief of staff Stephen Miller went so far as to blame the national debt on immigrants committing benefit fraud
“We could balance the federal budget if the only dollars that went out of the Treasury went to individuals who were properly lawfully correctly eligible to receive them,” Miller said at a press conference
The public rhetoric from Trump officials would lead one to false conclusions about who commits large-scale healthcare fraud — and who benefits
“We are seeing a trend around the administration scapegoating immigrants and not pointing to the actual bad actors: corporations,” said Isha Weerasinghe, director of the public benefits justice team at the Center for Law and Social Policy, a Washington-based nonprofit that advocates for people with low incomes
$300 Billion a Year
The National Health Care Anti-Fraud Association estimates that the cost of healthcare fraud could be as high as $300 billion a year
Most of that fraud is from providers scamming patients and insurance by billing patients for services not rendered or performing medically unnecessary services for the purpose of generating insurance payments
The administration does not want to highlight that type of fraud in their public rhetoric because they’re enabling it, said Krieger, of the National Immigration Law Center
“They’re not actually interested in solving the problem.”
“The administration has cut funding for all sorts of internal enforcement mechanisms. They have provided clemency to people convicted of government fraud in the past. They’ve fired inspector generals for overseeing accountability,” she said. “They’re not actually interested in solving the problem.”
Data suggests that noncitizens are less likely to commit welfare fraud than citizens
Weerasinghe said that the administration is using a well-worn tactic of blaming marginalized groups to take away benefits from the population more broadly.
“All of us know about the ‘welfare queen’ narrative, and that worked,” said Weerasinghe, referencing a racist trope popularized by Ronald Reagan to characterize Black people on benefits as greedy fraudsters. “It created a lot of hatred toward public benefits, and also this willingness for the public to be OK with this kind of crackdown that was absolutely unnecessary.”
Weerasinghe said the administration is using “the immigrant narrative in order to make their case to defer to defer funds.” Trump, for instance, recently froze more than $1 billion in Medicaid payments to California and Minnesota
“They’re not interested in tackling any systemic issues that may exist,” said Krieger. “They’ve kind of constructed a problem in search of a solution, and the solution always is to blame immigrants.”
IT’S EVEN WORSE THAN WE THOUGHT
What we’re seeing right now from Donald Trump is a full-on authoritarian takeover of the U.S. government.
This is not hyperbole
Court orders are being ignored. MAGA loyalists have been put in charge of the military and federal law enforcement agencies. The Department of Government Efficiency has stripped Congress of its power of the purse. News outlets that challenge Trump have been banished or put under investigation
Yet far too many are still covering Trump’s assault on democracy like politics as usual, with flattering headlines describing Trump as “unconventional,” “testing the boundaries,” and “aggressively flexing power.”
The Intercept has long covered authoritarian governments, billionaire oligarchs, and backsliding democracies around the world. We understand the challenge we face in Trump and the vital importance of press freedom in defending democracy
We’re independent of corporate interests. Will you help us?
IT’S BEEN A DEVASTATING year for journalism — the worst in modern U.S. history
We have a president with utter contempt for truth aggressively using the government’s full powers to dismantle the free press. Corporate news outlets have cowered, becoming accessories in Trump’s project to create a post-truth America. Right-wing billionaires have pounced, buying up media organizations and rebuilding the information environment to their liking
In this most perilous moment for democracy, The Intercept is fighting back. But to do so effectively, we need to grow
That’s where you come in. Will you help us expand our reporting capacity in time to hit the ground running in 2026?
We’re independent of corporate interests. Will you help us?
I’M BEN MUESSIG, The Intercept’s editor-in-chief. It’s been a devastating year for journalism — the worst in modern U.S. history
We have a president with utter contempt for truth aggressively using the government’s full powers to dismantle the free press. Corporate news outlets have cowered, becoming accessories in Trump’s project to create a post-truth America. Right-wing billionaires have pounced, buying up media organizations and rebuilding the information environment to their liking
In this most perilous moment for democracy, The Intercept is fighting back. But to do so effectively, we need to grow
That’s where you come in. Will you help us expand our reporting capacity in time to hit the ground running in 2026?
We’re independent of corporate interests. Will you help us?
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