The Centers for Medicare & Medicaid Services has announced a nationwide six-month freeze on new Medicare enrollments for hospice and home health agencies as part of a major federal effort to combat fraud and abuse within the healthcare system.
The moratorium, announced in coordination with Vice President JD Vance’s Anti-Fraud Task Force, temporarily halts new providers from entering Medicare in two sectors federal officials say have experienced “systemic and deeply troubling fraud.”
According to CMS Administrator Dr. Mehmet Oz, the action is aimed at protecting vulnerable patients and taxpayer dollars.
“We’ve seen systemic and deeply troubling fraud in the hospice and home health space, with bad actors exploiting some of our most vulnerable Medicare patients and stealing money from the American taxpayer,” Oz said in a statement.
Federal officials said the freeze only impacts new provider enrollments and certain ownership changes. Current hospice and home health agencies will continue operating normally and patient care will not be interrupted.
The crackdown follows multiple investigations into fraudulent billing practices nationwide. CMS officials said nearly 800 hospice and home health agencies in the Los Angeles area alone have had payments suspended amid fraud investigations involving approximately $1.4 billion in Medicare spending.
The federal government said additional enforcement efforts include revoking or deactivating hundreds of fraudulent providers, conducting nationwide site visits, expanding fingerprint-based background checks, and increasing oversight in states considered at higher fraud risk, including Ohio, California, Texas, Arizona, Georgia, and Nevada.
In response to the announcement, FAIRHOPE Hospice and Palliative Care President and CEO Kristin Glasure said legitimate hospice providers have long pushed for stronger oversight of fraudulent operators.
“We work to honor life through love and dignity, and we are frustrated to see the abuse of benefits created for people requiring end-of-life care,” Glasure said. “These bad actors harm the reputation of all hospice organizations through inexcusable conduct.”
Glasure added that FAIRHOPE supports the federal government’s actions and hopes the temporary freeze leads to improved oversight and accountability for new providers entering the industry.
CMS said the six-month moratorium is part of one of the most aggressive anti-fraud campaigns in agency history and builds on earlier freezes targeting fraudulent durable medical equipment suppliers.
