Summary (tl;dr)

The Centers for Medicare & Medicaid Services (CMS) has implemented a six-month nationwide moratorium on new hospice and home health agency enrollments in Medicare due to pervasive fraud, waste, and abuse in these sectors, particularly in California. Concurrently, the Trump administration is deferring $1.3 billion in Medicaid payments to California over its perceived failure to aggressively combat healthcare fraud.

Essential Background

Hospice care, designed for individuals with a life expectancy of six months or less, and home health services, have faced increasing scrutiny due to widespread fraudulent activities, especially in California. For years, "bad actors" have exploited these programs by submitting false claims, billing for unprovided services, and using stolen identities, costing taxpayers hundreds of millions of dollars. In response to this escalating issue, California Governor Gavin Newsom signed legislation in 2021 that banned new hospice licenses in the state, a moratorium that has been extended to combat the fraud crisis.

The Full Story

On May 13, 2026, the Centers for Medicare & Medicaid Services (CMS), led by Administrator Dr. Mehmet Oz, announced a six-month nationwide moratorium on new Medicare enrollment for hospice and home health agencies. This decisive action, coordinated with Vice President JD Vance's Anti-Fraud Task Force, aims to prevent new fraudulent providers from entering the Medicare program while CMS intensifies investigations and removes existing bad actors.

Simultaneously, Vice President JD Vance announced that the Trump administration is deferring $1.3 billion in Medicaid reimbursements to California. This unprecedented deferral targets California's Medi-Cal program, with the administration asserting that the state has not adequately addressed the rampant healthcare fraud within its borders. Dr. Oz further revealed that CMS has already suspended payments to hundreds of hospice and home health providers in the Los Angeles area, totaling $70 million, due to credible allegations of fraud. California officials, in turn, have accused the federal administration of political motivations and undermining programs for vulnerable populations.

Why It Matters

This dual federal action—a nationwide enrollment moratorium and a significant deferral of Medicaid funds to California—highlights a serious nationwide effort to combat healthcare fraud, with a particular focus on the hospice and home health sectors. The moratorium could impact access to care for legitimate new providers and beneficiaries in some areas, although CMS states it will not affect current enrollments. The financial implications for California are substantial, potentially forcing the state to enhance its anti-fraud measures or risk further federal funding cuts. This crackdown underscores the federal government's commitment to protecting Medicare and Medicaid beneficiaries and safeguarding taxpayer dollars from fraudulent schemes that have, in some cases, put vulnerable patients at risk.

Geographic Location

• United States (nationwide moratorium on new Medicare enrollment for hospices and home health agencies)
• Washington, D.C., District of Columbia, United States (White House event where CMS Administrator Dr. Mehmet Oz and Vice President JD Vance announced the moratorium and Medicaid payment deferrals)
• California, United States (epicenter of hospice fraud, state-level actions against fraud, $1.3 billion Medicaid payment deferral)
• Los Angeles, Los Angeles County, California, United States (hundreds of providers had funds cut, 773 hospices and 23 home health agencies suspected of fraud had payments suspended)
• Sacramento, Sacramento County, California, United States (California Department of Health Care Services and Department of Justice took action against fraud schemes, Governor Newsom signed legislation to ban new hospice licenses)