The Trump administration uncovered a massive Medicare fraud scheme — and already blocked $220 million in fraudulent claims tied to a suspicious 7,100 percent surge in transplant billing.
Medicare claims for tissue and organ transplants, known as allografts, exploded from $200 million in 2019 to $14.4 billion in 2025 — a jump that set off alarm bells across the White House Anti-Fraud Task Force.
Vice President JD Vance leads the task force. CMS Administrator Mehmet Oz leads enforcement.
Since March, the Centers for Medicare and Medicaid Services denied 96 percent of allograft claims flagged during the review.
“That’s a lot of money. And that bankrupts not just hospital systems and physician groups, but it causes major problems across the entire landscape.”
CMS identified 4,200 potentially fraudulent allograft claims totaling $224 million through May alone.
The crackdown didn’t stop with transplants. The administration also announced enforcement actions targeting Durable Medical Equipment fraud — wheelchairs, walkers, hospital beds, and other gear.
Payments have been suspended to 102 suppliers. Billing privileges revoked for another 725 suppliers. Those suppliers accounted for 8.6 percent of all Medicare-funded equipment in 2025.
CMS officials said they found claims for equipment that was never medically necessary, never ordered, more expensive than prescribed, or never delivered at all.
A spokesperson for Vance’s office said the task force “has effectively wiped out Durable Medical Equipment fraud in America” in just six months. The vice president and Oz announced a moratorium on new DME companies, paired with aggressive enforcement by DOJ and HHS.
Oz told Fox News Digital the administration’s whole-of-government approach stopped the bleeding.
“We stopped nearly $220 million in fraudulent skin substitute claims and suspended or revoked billing privileges for over 800 DME suppliers. We are keeping our promise to the American people: we will root out corruption, protect vulnerable patients, and hold every bad actor accountable.”
Oz had a message for anyone still trying to rip off Medicare.
“To anyone out there, and I’m talking to you if you’re a fraudster, for anyone out there who thinks they can get away by stealing from the American people, especially American patients, I’ve got a bit of advice for you: Do not walk away from this press conference. Don’t walk away from us. You start running because the vice president and this task force are coming after you.”
The White House Anti-Fraud Task Force is now expanding its review to other high-risk billing categories across Medicare and Medicaid.
