This story is the second in an ongoing series on the Cost of Fraud, as Open the Books tallies the hidden fees on American tax returns. Click here to read the first story on fraudulent autism billings.
In January 2026, Centers for Medicare and Medicaid Services Administrator Dr. Mehmet Oz alleged that roughly $3.5 billion worth of fraud, so far unconfirmed, was happening through false hospice billings in a scheme he attributed in large part to what he called the “Russian Armenian mafia.”
So, Open the Books took a look at Oz’s claims, what fraud could be confirmed, and its cost to taxpayers.
It turns out Russian and Armenian-linked fraud has cost taxpayers almost $1 billion in confirmed losses from Medicare and Medicaid, part of a Department of Justice operation dubbed “Operation Gold Rush.” These schemes become a hidden fee on America’s tax returns; this example carries a price tag of $7 per household, according to Federal Reserve data.
Open the Books’ cost-per-household estimates for fraud reflect only confirmed cases; the true cost is likely far higher.
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In June 2025, the Department of Justice announced charges against members of a transnational crime organization who had submitted an eye-popping $10.6 billion in fraudulent billings through medical supply companies they’d acquired. They successfully drew down $941 million from federal taxpayers, or $7 per household.
“Operation Gold Rush,” part of the National Health Care Fraud Takedown, is...
This story is the second in an ongoing series on the Cost of Fraud, as Open the Books tallies the hidden fees on American tax returns. Click here to read the first story on fraudulent autism billi...