The administration of US President Donald Trump will stop new home healthcare and hospice providers from enrolling in Medicare for at least six months as part of a wider crackdown on healthcare fraud. The decision came through a government statement released on Wednesday. Federal officials said the temporary moratorium aims to stop fraudulent operators from entering the Medicare system and collecting taxpayer money through fake or unnecessary claims, reported Reuters.
The order will prevent new providers from signing up for Medicare reimbursements. Medicare is the federal health insurance program that mainly serves Americans aged 65 and older and people with disabilities. The freeze will not affect providers already enrolled in the program, according to the Centers for Medicare & Medicaid Services, also known as CMS.
The move marks the latest action from Vice President JD Vance’s anti-fraud task force, which the administration launched earlier this year to target waste, fraud and abuse in federal healthcare spending, reported Reuters.
Federal officials said scammers have used hospice and home healthcare programs for years to collect millions of dollars through fraudulent billing schemes. In many cases, providers billed Medicare for services patients did not need or never received.
Consumer protection groups have repeatedly warned older Americans about these scams. The Senior Medicare Patrol, a national fraud prevention organization, has issued several public alerts tied to fake hospice and home healthcare claims. CMS Administrator Mehmet Oz defended the administration’s decision and said the government wants to protect both patients and taxpayers, reported Reuters.
“This is about protecting patients, restoring integrity and safeguarding taxpayer dollars,” Oz said in a statement.
An administration official said the pause will give CMS time to examine spending patterns in hospice and home healthcare programs and create stricter guidance before reopening enrollments.
Why did Trump administration take this step?
Healthcare fraud has troubled the Medicare system for years. Fraud schemes often involve providers billing the government for services patients never needed or never received. In some cases, patients were enrolled into hospice care without proper medical approval.
Consumer protection groups such as the Senior Medicare Patrol have repeatedly warned older Americans about these scams, reported Reuters. Fraud investigators say criminals target Medicare because the program handles huge amounts of federal money every year.
The federal government has used similar tactics before. In 2013, CMS temporarily stopped new enrollments for providers in Miami-Dade County, Florida, after officials detected unusual billing activity and suspected fraud networks.
The latest crackdown comes after years of complaints about weak oversight in certain states. California became a major focus after a state audit in 2022 found widespread problems in hospice regulation. Investigators said lax enforcement allowed questionable operators to enter the market and bill Medicare.
The Trump administration also increased hospice oversight in Republican-led states such as Georgia and Ohio last year. Officials rejected accusations that enforcement only targeted Democratic-controlled states.
The White House has still faced criticism from opponents who say the administration mixes political messaging with anti-fraud operations. Trump has repeatedly claimed, without public evidence, that Democratic-led states face higher fraud risks than Republican-led states.
The administration’s fraud campaign expanded beyond hospice care earlier this year. In February, officials paused Medicare enrollments for some suppliers of durable medical equipment, including prosthetics and medical devices.
Federal investigators estimate that healthcare fraud costs the United States tens of billions of dollars every year. Experts say those losses eventually raise healthcare costs for patients, employers and taxpayers.
Move by healthcare industries
Some healthcare groups support temporary restrictions if they help remove fraudulent operators from the system. Others worry the freeze may hurt access to care for patients who need hospice or home treatment.
The National Partnership for Healthcare and Hospice Innovation backed a temporary enrollment pause earlier this year, reported Reuters. The group says that tighter oversight could protect patients and improve trust in the hospice industry.
However, the National Alliance for Care at Home warned the administration against taking actions that may discourage doctors, nurses and patients from using hospice or home healthcare services.
Hospice care remains a major part of the US healthcare system. According to the Medicare Payment Advisory Commission, about 1.8 million Medicare beneficiaries received hospice services in 2024. The total cost reached $28.3 billion, reported Reuters.
Home healthcare programs also handled large numbers of patients. Around 2.7 million Medicare beneficiaries used home healthcare services last year at a cost of about $16 billion.
Several large companies operate in the sector, including UnitedHealth Group and BrightSpring Health Services. Major hospice providers also include VITAS Healthcare, which operates under Chemed Corporation.
The administration’s broader anti-fraud effort first gained national attention in Minnesota earlier this year. Federal officials moved to withhold $259 million linked to Medicaid funding after investigations into alleged fraud schemes involving public assistance programs.
Trump also referred several times to a Minnesota child nutrition fraud case that began in 2020. Prosecutors accused dozens of people of stealing about $250 million from a federally funded food assistance program.
The issue later became politically charged after the administration linked fraud investigations with immigration enforcement policies in Minnesota.