WASHINGTON (AP) — The Trump administration on Wednesday pursued new efforts in a sweeping initiative to root out fraud in federal health programs, including announcing a nationwide six-month freeze on some new Medicare enrollments and warning states to actively investigate Medicaid fraud or risk losing funding.
Watch the full news conference in the video player above.
The moves are related to Vice President JD Vance's anti-fraud task force, which has been accelerating its messaging before the November elections. The panel set up by Republican President Donald Trump seeks to crack down on potential misuse of public money.
The most significant step Wednesday came from the Centers for Medicare and Medicaid Services with a nationwide six-month moratorium on all new Medicare enrollments by providers of hospice and home care.
"We've seen systemic and deeply troubling fraud in the hospice and home health space, with bad actors exploiting some of our most vulnerable Medicare patients and stealing money from the American taxpayer," the agency's administrator, Dr. Mehmet Oz, said in a statement. "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."
The Department of Health and Human Services' internal watchdog has sent letters to state attorneys general warning them to vigorously investigate possible fraud or risk losing federal money.
People across the United States have raised concerns about rising health costs and barriers to access, sometimes from the federal government's own actions. New work requirements in Medicaid, for example, are expected to strain hospitals around the country and result in millions of enrollees losing their health coverage.
Several alleged fraud schemes have been prosecuted in the hospice and home health care categories, and states have acknowledged that it is a legitimate concern. But some have pushed back on the administration's aggressive tactics and raised concerns that the catchall efforts could needlessly punish law-abiding providers that are trying to serve patients.
The administration contends the enrollment freeze and other actions it is taking will help prevent potential fraud in Medicaid and Medicare and preserve funding and resources for people most in need. Under the six-month pause, existing hospice and home health care providers will continue to operate as usual. But CMS said it will "intensify targeted investigations, deploy advanced data analytics, and accelerate the removal" of providers in the category that are suspected of fraudulent activity.
Such a freeze is not unprecedented, said Tricia Neumann, a senior vice president and executive director for the program on Medicare policy at the health care research nonprofit KFF. She said President Bill Clinton's Democratic administration also imposed a temporary moratorium on home health agencies.
"A brief moratorium gives the administration time to crack down on true fraud and prevent new fraudulent entities from popping up," she said.
Vance, a potential 2028 White House hopeful, has used the high-profile assignment from Trump to remind Americans struggling with high costs that he is trying to claw back taxpayer dollars. Vance has promoted the task force's work during campaign stops for Republican candidates and is expected to focus on the effort Thursday in Maine, where they are closely watched primary races on June 9.
Oz said earlier in the year that he was calling for corrective action on alleged fraud in government health programs in Maine, a request characterized by the state's Democratic governor, Janet Mills, as a "political attack."
In recent months, CMS has suspended payments to hundreds of hospice and home care agencies in Los Angeles over alleged fraud and issued another six-month moratorium on suppliers of durable medical equipment, prosthetics, orthotics and certain other supplies in Medicare.
The administration also has approached at least five states with investigations into potential health care fraud and halted some $243 million in Medicaid payments to one of them, Minnesota, over fraud concerns. Last month, Oz announced CMS would add to that oversight by requiring all 50 states to share how they planned to revalidate some of their Medicaid providers.
In at least one case, the administration has erred in its accusations against states. In April, CMS acknowledged to The Associated Press that it made a significant error in figures it used to help justify a fraud probe in New York. The acknowledgment deepened doubts in the administration's methods and raised a common criticism that has been made about the second Trump administration — that it tends to attack first and confirm the facts later.
Swenson reported from New York. Associated Press writer Geoff Mulvihill in Haddonfield, New Jersey, contributed to this report.
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