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In a dramatic escalation of tensions between California Governor Gavin Newsom and the Trump administration, a recent video featuring Mehmet Oz, head of the Centres for Medicare and Medicaid Services (CMS), has ignited a fierce debate over allegations of healthcare fraud involving Los Angeles’s Armenian community. Newsom’s office has responded by filing a civil rights complaint with the US Department of Health and Human Services, claiming Oz’s statements are not only baseless but also racially charged, potentially leading to significant harm within the community.
The Controversial Allegations
The controversy erupted following Oz’s visit to Van Nuys, a neighbourhood in Los Angeles with a substantial Armenian population. In a video that has circulated widely on social media, Oz asserts that a network of 42 hospices in the area is implicated in a vast healthcare fraud scheme. He references a specific case involving a business allegedly entangled in a $16 million fraud operation. Furthermore, he claims that approximately $3.5 billion in fraud related to hospice and home care services has occurred in Los Angeles, with a significant portion allegedly orchestrated by what he terms the “Russian Armenian mafia.”
During his remarks, Oz highlights the Armenian script visible on local business signage, suggesting a direct link between the community and the alleged fraudulent activities. His statements have not only provoked outrage from local leaders but have also prompted fears of a chilling effect on community participation in essential healthcare programmes.
Newsom’s Response
In reaction to Oz’s claims, Governor Newsom’s administration quickly mounted a rebuttal. The governor’s civil rights complaint argues that Oz’s remarks risk inciting discrimination against the Armenian community and could deter individuals from seeking hospice and home care services. Newsom’s office pointed out that the unfounded allegations have already resulted in tangible harm, including reduced patronage at an Armenian bakery featured in the controversial video.
Moreover, Newsom highlighted California’s proactive measures against healthcare fraud, noting that over 280 hospice licenses had been revoked since 2022 due to concerns regarding fraudulent activities. This underscores a commitment to safeguarding the integrity of healthcare services rather than the indiscriminate targeting of specific communities.
The Broader Context
This incident is part of a larger pattern of conflict between Newsom, who is speculated to be a potential Democratic presidential candidate for the 2028 election, and the Republican leadership under Donald Trump. Their rivalry has spanned various issues, from immigration policy to environmental regulations, and now appears to encompass allegations of systemic fraud affecting vulnerable communities.
Oz’s video aligns with a broader initiative by the Trump administration to spotlight alleged fraud across the nation. This follows previous controversies, such as the crackdown on daycare centres operated by Somali Americans in Minneapolis, which resulted in significant unrest and, tragically, loss of life.
Why it Matters
This unfolding situation highlights a critical intersection of healthcare, race, and politics in the United States. As allegations of fraud surface, they not only threaten the livelihoods of entire communities but also raise questions about the motivations behind such claims. The implications extend beyond California, serving as a potential blueprint for future political strategies aimed at galvanising support through divisive narratives. As both sides prepare for a likely intensification of this conflict, the stakes for the Armenian community and for healthcare policy in the US remain alarmingly high.
