The numbers are staggering, and the crackdown is finally matching the scale of the problem. Vice President JD Vance’s Anti-Fraud Task Force, working with the Centers for Medicare and Medicaid Services, has withheld $1.4 billion in federal funding from home health and hospice providers suspected of defrauding Medicare. A nationwide six-month moratorium on new Medicare enrollments for hospice and home health agencies took effect Tuesday to halt fraudulent activity while investigators clean house.
CMS identified hospice and home health as high-risk categories where fraudulent actors have exploited Medicare patients and taxpayers on a massive scale. The freeze applies only to initial enrollment applications and certain ownership transfers—critical mechanisms fraudsters use to obscure control—while existing enrolled providers continue serving beneficiaries without interruption. CMS reported that its recent enforcement actions with the Vance task force already suspended payments to 773 hospices and 23 home health agencies in Los Angeles alone, representing roughly $70 million in withheld funds.
The scope of fraud is alarming: nearly 90% of suspended providers never contacted CMS after their payments were cut off—a behavior inconsistent with legitimate operations that typically fight for reimbursement. Reports indicate this pattern emerged across states including California and Minnesota, where alleged thefts in focused enforcement actions exceeded $600 million. The moratorium specifically targets fraudsters attempting to hop state lines to evade local enforcement pauses.
CMS Administrator Dr. Mehmet Oz described the misconduct as exploiting vulnerable patients while stealing taxpayer funds. The freeze enables intensified investigations, advanced data analytics, and accelerated removal of suspected fraudulent providers without disrupting patient care. This targeted action represents a critical step in stopping shell operations that bill Medicare for nonexistent services—ensuring taxpayer dollars serve real patients, not criminals.
