Cohen, Morgan Proposed Plans to Curb Hospice Fraud
The candidates for California controller outlined distinct approaches to address rampant hospice billing fraud.
Updated on Oct. 7, 2026 in Healthcare
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California controller candidates Malia Cohen and Herb Morgan have proposed competing strategies to mitigate widespread hospice industry fraud. With Los Angeles County alone accounting for an estimated $3.5 billion in fraudulent claims, the office's oversight role has become a focal point of the race.
Why it matters
The California controller serves as a vital financial watchdog, responsible for auditing public programs and maintaining fiscal oversight of payments from the state Treasury. Addressing systemic exploitation of Medicare by hospice providers is essential to protecting public funds and ensuring the integrity of the state healthcare system.
Since the start of 2025, more than 1,000 hospices have been removed from Medicare, and the California Department of Health has revoked hundreds of licenses over the past two years.
The players
Malia Cohen
She has held the office of California controller since 2022 and is currently seeking reelection.
Herb Morgan
He is a candidate for California controller who previously founded the investment firm Efficient Market Advisors.
The details
Incumbent Malia Cohen intends to modernize the state's fiscal management system to improve oversight, while challenger Herb Morgan proposes publishing all material state payments on a public ledger for greater transparency.
Timeline
More than 1,000 hospices were removed from Medicare in 2025.
Malia Cohen began her tenure as California controller in 2022.
Herb Morgan founded his investment firm Efficient Market Advisors in 2004.
The election for California controller will occur on November 3, 2026.
Market Landscape
These strategies reflect a broader effort to reform the Medicare hospice benefit by tightening eligibility and payment oversight. This move positions the controller’s office as a critical check against systemic exploitation within the state’s healthcare provider market.
The outcome of this election may determine how aggressively the state audits healthcare claims to prevent waste. Residents could see significant changes in how public health programs are managed, directly impacting the fiscal health of California state services.
The takeaway
The race for California controller highlights the critical role of fiscal oversight in curbing multi-billion dollar fraud schemes. Voters face a choice between modernizing existing state systems or shifting toward a policy of radical fiscal transparency.
Further reading
For more on how state oversight impacts medical service providers, visit the Healthcare section.
Source note: This article includes information reported by Daily Bulletin.
Live Poll
Should local government prioritize fraud prevention over auditing and recovering lost taxpayer funds?
