Medicare Experiences A 7,100% Increase In Skin Substitute Claims Over 6 Years

Medicare claims for skin substitutes (allografts) surged from $200 million to $14.4 billion between 2019 and 2025.  Another explosion in fraud?

https://www.foxnews.com/politics/trump-admin-uncovers-7100-surge-medicare-transplant-claims-anti-fraud-crackdown-blocked-millions

Trump admin uncovers 7,100% surge in Medicare skin substitute claims, says fraud crackdown blocked millions
Vance-led task force says 96% of potentially fraudulent claims denied for since March.
By Preston Mizell & Stephen Sorace - July 8, 2026

FIRST ON FOX: The Trump administration revealed new figures that show a drastic 7,100% spike in Medicare claims for skin substitutes in just six years as the task force led by Vice President JD Vance continues to crack down on fraud across the country.

The staggering increase in claims occurred between 2019 and 2025, surging from $200 million to $14.4 billion, prompting the anti-fraud task force and the Centers for Medicare and Medicaid Services (CMS) to identify potentially fraudulent claims and deny 96% of claims made since March.

The CMS, which is led by Administrator Mehmet Oz, identified 4,200 suspicious claims for skin substitutes, known as allografts, totaling $224 million in charges through May of this year.

"That's a lot of money," Oz said during a press conference in Milwaukee, Wisconsin, on Wednesday. "And that bankrupts not just hospital systems and physician groups, but it causes major problems across the entire landscape."

The agency also found alleged fraudulent claims for Durable Medical Equipment (DME), which includes wheelchairs, walkers, hospital beds and other essential equipment. The agency says that payments have been suspended to 102 suppliers and revoked 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. "After the vice president and Dr. Oz announced a moratorium on new DME companies, paired with aggressive enforcement actions by DOJ and HHS, this kind of fraud has effectively ended."

The suppliers who were suspected of fraud and had payments suspended represented 8.6% of all Medicare-funded Durable Medical Equipment in 2025.

Fox News Digital learned from sources at the Centers for Medicare and Medicaid Services 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 told Fox News Digital 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."

Oz reiterated his warning to fraudsters during the press conference.

"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," Oz said at the press conference ahead of expected remarks from Vance highlighting the efforts made by the anti-fraud task force.

In May, the Justice Department charged 15 individuals in Minnesota, finding more than $90 million in alleged fraudulent claims tied to multiple state-funded assistance programs.

The task force and the 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," Vance said in a message on X at the time. "Our message is simple: if you’re committing fraud, we will find you, and we won’t rest until justice is served."

President Donald Trump established the task force through an executive order in May. He appointed Vance to lead the task force, and a number of agencies and departments have been involved in the effort to crack down 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!"