The Trump administration will temporarily halt Medicare enrollment by new home health and hospice providers amid concerns about rampant healthcare fraud, an exclusive report by Reuters revealed.
The nationwide suspension comes after the U.S. State Attorney’s office, in a joint effort with Vice President (VP) J.D. Vance's anti-fraud task force, announced the arrest of 8 healthcare professionals accused of various Medicare fraud schemes totaling $50 million across Southern California.
"Widespread fraud has gone on for far too long. But under the Vice President's task force, we are finally putting a stop to the massive scale fraudsters ripping off the American people once and for all," a spokesperson for VP Vance said.
Centers for Medicare & Medicaid Services' Announcement
"Today we’re shutting the door on fraud—preventing new bad actors from entering Medicare while we aggressively identify, investigate, and remove those already exploiting them," Centers for Medicare and Medicaid Services (CMS) Administrator, Dr. Mehmet Oz, shared on X. "This is about protecting patients, restoring integrity, and safeguarding taxpayer dollars."
The pause would give the CMS time to fully account for hospice and home health expenses under the Medicare program and create additional guidance, a senior administration official told the media outlet.
The CMS oversees federally funded health insurance programs.
One of the concerns behind the pause was the rate at which fraudulent home health and hospice businesses can be established, the official added.
Trump Administration's Efforts to Combat Medicare Fraud
The Trump administration has blamed some Democratic-led states, such as California and Minnesota, for taking serious efforts to combat fraud.
During the announcement of the California healthcare fraud arrests, First Assistant U.S. Attorney Bill Essayli dubbed the state the “kingdom of fraud,” accusing it of failing to perform proper vetting procedures when issuing hospice licenses.
According to the National Health Care Anti-Fraud Association, tens of billions of dollars are estimated to be lost nationwide via healthcare fraud every year. These schemes lead to higher costs for both patients and employers.
In Feb. 2026, the Trump administration additionally paused Medicare enrollments by suppliers of durable medical equipment, such as mobility aids.
