02/26/2026
Vice President Vance and Administrator Oz Hold Health Care Fraud Press Conference and Announce New Medicaid and Medicare Policies and RFI
On February 25, Vice President JD Vance and Administrator Mehmet Oz announced new steps to crack down on fraud in the Medicare and Medicaid programs. In the State of the Union on February 24, President Trump announced that VP Vance would be in charge of the Administration's "war on fraud," and that role was referenced in yesterday’'s press conference. LeadingAge recently engaged with the Administrator on fraud in hospice and home health and has been tracking the statements, actions, and potential actions across our continuum of care, including in the Medicaid program.
The Trump administration has directed the Centers for Medicare & Medicaid Services to withhold $259.5 million in federal Medicaid matching funds from Minnesota, citing concerns identified in a review of fourth-quarter 2025 spending. The funds reflect services already delivered and reimbursed by the state. Minnesota has 60 days to submit a corrective action plan or risk additional deferrals. In its announcement, CMS identified personal care and home- and community-based services as program integrity risk areas. Vice President JD Vance defended the move, emphasizing federal oversight of appropriated dollars, while CMS Administrator Mehmet Oz indicated other states may face similar scrutiny. Because Medicaid is an appropriated entitlement, Congress authorizes the federal match even though spending is mandatory. LeadingAge anticipates the action could face legal challenge, though no litigation has been filed.
CMS also announced a six-month, nationwide moratorium on new Medicare enrollment for durable medical equipment providers, citing fraud concerns, particularly in South Florida. Administrator Oz said a nationwide pause is intended to prevent bad actors from relocating across state lines and referenced coordination with the U.S. Treasury Department, including the Internal Revenue Service, to address fraud.
In addition, CMS issued a Request for Information on Comprehensive Regulations to Uncover Suspicious Healthcare, now open for a 30-day comment period in the Federal Register. LeadingAge will review the moratorium’s potential implications for providers and submit comments on the RFI in coordination with state partners and members.
Fraud in Ohio? Read last week’s article on suspect utilization of Ohio’s nursing home ventilator program here.
