The Department of Health and Human Services (HHS) has enacted a six-month freeze on new Medicare enrollments for home health care and hospice providers, effective immediately, as part of the Trump administration's intensified crackdown on fraud. The moratorium, announced Wednesday, prevents these providers from registering to receive reimbursements from Medicare, the federal health insurance program for Americans aged 65 and older or those with disabilities.
The Centers for Medicare and Medicaid Services (CMS) implemented the pause in coordination with Vice President Vance's Anti-Fraud Task Force, which the president established earlier this year following federal allegations of widespread fraud in a Minnesota social services program. CMS Administrator Mehmet Oz stated, "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."
Oz added, "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. This is about protecting patients, restoring integrity, and safeguarding taxpayer dollars." The agency plans to conduct targeted investigations into providers suspected of Medicare fraud during the moratorium, while confirming that already-enrolled providers will not be affected.
This action follows the administration's pause of $259.5 million in Medicaid reimbursements to Minnesota in February, amid a federal probe into social service fraud. Prosecutors alleged that a group defrauded over $250 million from a federally funded child nutrition program, with many of those implicated being Somali Americans. The White House used these allegations to justify its controversial immigration enforcement in Minneapolis, which resulted in the fatal shooting of two U.S. citizens by federal officers.
The Trump administration has also targeted other Democrat-led states, including Maine and California, as part of its broader anti-fraud campaign. Vice President Vance declared on social media Tuesday, "Under President Trump, we are unleashing the most aggressive federal anti-fraud efforts in American history. We won't rest until we root out every bit of fraud infecting our government and screwing over taxpayers."
Critics argue that the moratorium could disrupt access to care for patients who rely on new home health or hospice providers, though CMS insists the measure is necessary to protect program integrity. The freeze aligns with the administration's broader push to cut spending and combat waste, which has included a proposed gas tax holiday and budget reductions at agencies like Interior. However, a recent poll found that 77% of Americans believe Trump's policies have raised living costs, adding pressure on the White House to demonstrate fiscal responsibility.
The moratorium also comes as the administration faces scrutiny over its handling of international issues, including ongoing tensions with Iran and trade negotiations with China. While the freeze targets domestic fraud, it underscores the administration's focus on reining in spending amid broader economic concerns.
