The Trump administration has announced a six-month nationwide freeze on new enrollments for hospice and home health providers under Medicare, as part of a broader crackdown on healthcare fraud.
According to the Centers for Medicare and Medicaid Services (CMS), existing providers will not be affected by the pause. The move allows regulators to strengthen oversight and investigate suspicious billing practices in high-risk sectors.
CMS Administrator Dr. Mehmet Oz stated that the initiative aims to protect vulnerable patients and taxpayer dollars. Vice President J.D. Vance is leading a federal anti-fraud task force focused on abuses in hospice and home healthcare programs. Federal officials estimate tens of billions of dollars are lost annually to healthcare fraud, with California receiving particular scrutiny over allegations of widespread hospice abuse. Medicare spent roughly $28.3 billion on hospice care and $16 billion on home healthcare in 2024, according to federal data.
In a key quote, Dr. Mehmet Oz noted: “A third of all hospices… in the entire country are in Los Angeles. Ask yourself, ‘How is that possible?’ It’s not. There are not that many people dying in Los Angeles… We believe that at least half of the hospices in the entire area around Los Angeles are fraudulent.”
While current providers remain unaffected and can continue serving patients, the freeze will impact new providers seeking federal funding for hospice and home health services.
