Crossroads 2026SC Politics

South Carolina Prosecutor Zeroes in on Medicaid Fraud

“This is happening in state after state…”

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by WILL FOLKS

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South Carolina eighth circuit solicitor David Stumbo – who is running to become the Palmetto State’s next attorney general – says he would take aim at Medicaid fraud in the event he is elected.

According to Stumbo, Medicaid fraud costs South Carolina taxpayers a minimum of $147 million annually – with more than 9,300 recipients having been “flagged for assets above the legal limit.” Of those, Stumbo claimed more than 1,000 had “six-figure bank accounts, and some with more than $1 million.”

“Millionaires are on Medicaid in South Carolina,” Stumbo said during a press conference at the S.C. State House. “And as attorney general, I’m going to stop it.”

Stumbo’s calculations may be on the conservative side. According to the latest data from the U.S. Department of Health and Human Services (HHS), an estimated 6.12% of Medicaid payments are fraudulent. If we apply that figure to the estimated $10.1 billion in Medicaid funding expended in the Palmetto State, the true fraud total could be as high as $620 million.

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Whatever the amount, Stumbo said it is depriving rightful recipients of the funding to which they are entitled.

“South Carolina families are working two jobs to afford groceries and gas — while their tax dollars are paying for millionaires on Medicaid,” Stumbo said. “And more than 25,000 vulnerable South Carolinians are stuck on waitlists, some for years. That is wrong. And it ends when I’m attorney general.”

Stumbo was joined at his press conference by state senator Billy Garrett, sponsor of S. 915. Garrett’s legislation – which unanimously passed the S.C. Senate but died in the S.C. House of Representatives – would have dramatically expanded the ability of future attorneys general to investigate and prosecute Medicaid fraud.

“Senator Garrett’s bill passed the Senate forty-five to nothing,” Stumbo said. “Republicans, Democrats — every senator agreed. It gives the attorney general the power to subpoena fraud records, prosecute fraud with real penalties, and recover taxpayer money,” Stumbo said. “Pass it. Send it to the governor. Then send me to enforce it.”d have dramatically expanded the authority of future attorneys general to investigate and prosecute.”

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Stumbo also praised current attorney general Alan Wilson for his work on this issue, vowing to continue his efforts via the implementation of “a five-point plan to root out Medicaid fraud and protect both South Carolina taxpayers and the vulnerable citizens the program was built to serve.”

Stumbo’s plan consists of…

  • Medicaid Fraud Strike Force in the attorney general’s office, dedicated to prosecution and investigation
  • Aggressive criminal prosecution of recipients gaming the system, providers billing for services never delivered, and shell-company middlemen exploiting the program
  • fight for full annual asset verification of every ABD Medicaid recipient — every year, no more 25% spot checks
  • Cross-state fraud detection — working with other states to catch the scammers who hop state lines
  • public annual report on Medicaid fraud investigations, prosecutions, and taxpayer dollars recovered

“This is happening in state after state,” Stumbo said. “The same fraudsters. The same shell games. The same middlemen treating a program meant for sick children, the elderly, and the disabled like a personal ATM. South Carolina will not be next. Not on my watch.”

Stumbo is one of three candidates vying for the Republican nomination for attorney general. The others are state senator Stephen Goldfinch and first circuit solicitor David Pascoe. Recent polling shows broad swaths of the state’s GOP electorate is undecided as to which of the three candidates they prefer.

Charleston, S.C. attorney Richard Hricik is the lone Democrat who filed for the office. He will face the winner of the GOP primary in the November election.

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ABOUT THE AUTHOR…

Will Folks (FITSNews)

Will Folks is the founding editor of the news outlet you are currently reading. Prior to founding FITSNews, he served as press secretary to the governor of South Carolina. He lives in the Midlands region of the state with his wife and eight children.

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