Vice President JD Vance has threatened to cut federal funding for states that do not comply with the Trump administration's anti-fraud efforts in Medicaid and Medicare programs. The administration announced a six-month moratorium on new home healthcare and hospice providers enrolling in Medicare, citing concerns about widespread fraud.
Key Takeaways
Vice President JD Vance has threatened to cut federal funding for states that do not comply with the Trump administration's anti-fraud efforts in Medicaid and Medicare programs. The administration announced a six-month moratorium on new home healthcare and hospice providers enrolling in Medicare, citing concerns about widespread fraud.
The move comes as part of Vance's anti-fraud task force, which aims to crack down on healthcare scams. According to Reuters, the Trump administration will block new home healthcare and hospice providers from enrolling in Medicare for at least six months. This moratorium is expected to give the Centers for Medicare & Medicaid Services (CMS) time to account for expenditures under the Medicare program and create additional guidance.
The administration has been criticized for mixing political preferences with agency efforts to eliminate fraud in government payments. Fox News reported that Vance warned states could lose federal funding if they fail to aggressively pursue Medicaid fraud. The administration is deferring $1.3 billion in Medicaid reimbursements from California, accusing the state of failing to take fraud seriously.
The crackdown on healthcare fraud started in Minnesota, where the Trump administration said it would withhold $259 million in funds for Medicaid. The administration has also paused Medicare enrollments by suppliers of durable medical equipment, such as prostheses. Industry groups have urged different approaches as the Trump administration weighs potential action.
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