The Trump administration uncovered a jaw-dropping 7,100% surge in Medicare claims for skin substitutes over just six years—from $200 million in 2019 to $14.4 billion in 2025—and has already blocked millions in fraudulent payments as Vice President JD Vance’s anti-fraud task force cracks down nationwide.
The staggering spike prompted immediate action from the Centers for Medicare and Medicaid Services (CMS), led by Administrator Mehmet Oz, which identified 4,200 suspicious claims for skin substitutes—known as allografts—totaling $224 million in charges through May.
Since March, CMS has denied 96% of claims flagged as potentially fraudulent.
“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.”
Oz delivered that warning during a press conference in Milwaukee on Wednesday, ahead of expected remarks from Vance highlighting the task force’s wins.
The agency also targeted alleged fraud in Durable Medical Equipment (DME)—wheelchairs, walkers, hospital beds—suspending payments to 102 suppliers and revoking billing privileges for an additional 725 suppliers.
“In just six months, the task force has effectively wiped out Durable Medical Equipment fraud in America,” a spokesperson for Vance’s office told Fox News Digital.
The crackdown came after Vance and Oz announced a moratorium on new DME companies, paired with aggressive enforcement actions by the Justice Department and HHS.
The suspended suppliers represented 8.6% of all Medicare-funded Durable Medical Equipment in 2025.
Sources at CMS told Fox News Digital that fraud was identified for suppliers who filed claims for equipment that was not necessary or ordered, filed claims for equipment more complex or expensive than ordered, and claims for equipment that was never delivered.
“Thanks to the whole-of-government approach spearheaded by the White House Anti-Fraud Task Force, we stopped nearly $220 million in fraudulent skin substitute claims and suspended or revoked billing privileges for over 800 DME suppliers,” Oz said in a statement.
“We are keeping our promise to the American people: we will root out corruption, protect vulnerable patients, and hold every bad actor accountable.”
“TO 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.”
Oz issued that direct warning to fraudsters during the Milwaukee press conference.
In May, the Justice Department charged 15 individuals in Minnesota, uncovering more than $90 million in alleged fraudulent claims tied to multiple state-funded assistance programs.
The task force and DOJ announced a massive takedown of two of the largest Medicaid fraud cases in Minnesota state history, as well as the largest autism fraud scheme ever charged by the federal government.
“Our message is simple: if you’re committing fraud, we will find you, and we won’t rest until justice is served,” Vance said on X at the time.
President Donald Trump established the anti-fraud task force through an executive order in May, appointing Vance to lead the effort. A number of agencies and departments have joined the crackdown on fraud across the country.
“Vice President JD Vance and Republicans are doing a great job hunting down Fraud in the various States,” Trump posted on Truth Social in June. “Billions of Dollars is being found, and we’ve just started!”
