The Trump administration has announced a nationwide six-month freeze on new Medicare enrollments for hospice and home health agencies, expanding its anti-fraud efforts. The Centers for Medicare and Medicaid Services (CMS) said the moratorium aims to prevent fraudulent providers from entering the system while investigations intensify.
CMS Administrator Dr. Mehmet Oz stated that systemic fraud in hospice and home health care has exploited vulnerable patients and wasted taxpayer money. The freeze is part of Vice President JD Vance's anti-fraud task force, established by President Donald Trump to curb misuse of public funds.
Existing providers will continue operations as usual, but CMS plans to use advanced data analytics and targeted investigations to identify and remove fraudulent actors. The move follows similar moratoriums on durable medical equipment suppliers and payment suspensions to agencies in Los Angeles.
Critics warn that the broad freeze could penalize legitimate providers, while supporters argue it is necessary to protect Medicare resources. A similar moratorium on home health agencies was imposed under President Bill Clinton, noted Tricia Neumann of KFF, a health care research nonprofit.
The administration has also investigated potential fraud in at least five states, halting $243 million in Medicaid payments to Minnesota. However, CMS acknowledged a significant error in figures used to justify a fraud probe in New York, raising doubts about its methods.
