Trump Administration Pauses New Hospice Enrollment in Medicare
Trump administration pauses new hospice and home – The Trump administration has temporarily halted the enrollment of new hospice providers in Medicare, as part of its ongoing efforts to address alleged fraud within the healthcare sector. This decision, announced by the Centers for Medicare and Medicaid Services (CMS) on Wednesday, imposes a six-month moratorium on new hospice and home health agencies seeking to join the program. The move comes amid growing concerns about financial mismanagement and improper billing practices in these fields, according to officials.
Combatting Fraud in the Hospice Sector
CMS Administrator Dr. Mehmet Oz highlighted the initiative as a response to “systemic and deeply troubling fraud” in the hospice and home health industries. He stated that the moratorium aims to prevent unscrupulous actors from exploiting Medicare beneficiaries and siphoning funds from the American public. Oz emphasized the need to “shut the door on fraud” while investigations are conducted to root out bad actors. The action is part of a broader strategy led by Vice President JD Vance’s Anti-Fraud Task Force, which has been targeting areas with high fraud rates.
Broader Anti-Fraud Measures
Officials from the Trump administration have been taking a multi-pronged approach to curbing fraud. In addition to the new hospice enrollment pause, CMS has also imposed a moratorium on certain durable medical equipment providers, such as those supplying wheelchairs and hospital beds. This nationwide pause is part of an effort to scrutinize the industry for overcharging and improper claims. The administration has also directed state-level actions, including a prior pause on Medicaid payments to Minnesota and targeted investigations in several other states.
Dr. Mehmet Oz, in collaboration with Vice President JD Vance, has made combating fraud a central policy focus. The pair is set to unveil additional anti-fraud measures during a press briefing on Wednesday afternoon, further solidifying their commitment to reducing waste and abuse in healthcare programs. Mills, the Democratic governor of Maine, has been cited in previous actions, as the administration has scrutinized the state’s Medicaid-funded treatment program for children with autism. These efforts have sparked debates about whether the initiatives are politically motivated or genuinely aimed at improving program integrity.
Impact on Patients and Providers
While the moratorium is framed as a necessary step to protect Medicare funds, critics warn that it could limit access to care for patients. The National Alliance for Care at Home expressed concerns that the pause might deter legitimate providers from entering the market, especially in rural and underserved areas where demand for hospice services is rising. “An enrollment moratorium raises serious access-to-care concerns,” the group stated, noting that it could lead to longer wait times and reduced service availability.
According to CMS, the moratorium has already led to the suspension of $70 million in payments to 773 hospices and 23 home health agencies suspected of fraud. The agency has also revoked or deactivated hundreds of providers in Los Angeles and other regions, where it has focused its investigations. While these actions are seen as a step toward accountability, advocates argue that the process could be improved by incorporating more stakeholder input and ensuring transparency in how providers are evaluated.
Despite the pause, the administration has maintained that it is working with states to develop strategies that identify and stop fraudulent activity. For example, in Arizona, California, and Georgia, CMS has expanded oversight of new hospice providers, while in Florida and Texas, it has intensified reviews of home health claims. These targeted measures aim to strike a balance between preventing fraud and maintaining essential healthcare services for patients who rely on them.
