J.D. Vance warned states Wednesday to “get serious” about addressing fraud in the Medicaid and Medicare programs as Trump administration Increased scrutiny of health care spending and state compliance measures.
Speech during White HouseContinuously expand anti-fraud efforts, Vance The government wants states to step up investigations into alleged abuses involving federally funded health care schemes, The Guardian reports.
The comments come amid a new federal crackdown that includes tighter oversight of hospice and home health care providers and a review of state anti-fraud enforcement systems.
“Our goal is not to do that. We don’t want to close any funds,” Vance said. “What we want to do is make sure people take fraud seriously.”
Will states face Medicare or Medicaid funding cuts?
Vance said states that don’t comply with the government’s anti-fraud efforts could risk losing federal health care resources related to the Medicaid and Medicare programs.
“If we continue to see problems, we can also shut down other resources in the state’s Medicaid program,” he said.
Minnesota and three other Democratic-led states already face heightened scrutiny over the government’s anti-fraud campaign, The Guardian reported. More than $300 million in funding to Minnesota was reportedly on hold in recent months due to separate compliance issues, an action later suspended by the Centers for Medicare and Medicaid Services (CMS).
However, health care policy experts question whether the federal government has the legal authority to broadly withhold Medicaid funding from states.
Andy Schneider, a research professor at Georgetown University’s Center for Children and Families, told the Guardian that there was “no legal or regulatory basis” to withhold all federal Medicaid matching funds because of a failure by state fraud watchdogs.
What actions is the Trump administration taking?
The Centers for Medicare and Medicaid Services announced a six-month freeze on new Medicare enrollment for hospices and home health agencies while investigators examine suspected fraudulent activity.
President Donald Trump earlier signed an executive order creating a federal anti-fraud task force aimed at reducing waste and abuse in government health care programs.
Federal officials are also preparing to conduct an audit of the Medicaid Fraud Control Unit (MFCU), the watchdog group responsible for investigating abuse and fraud within the Medicaid system.
The Wall Street Journal reported that attorneys general in all 50 states received a letter from Thomas Bell, the inspector general of the Department of Health and Human Services, warning that failure to properly investigate fraud could put Medicaid funding “in jeopardy.”
The administration’s approach has drawn criticism from health care experts and Democratic lawmakers who say aggressive anti-fraud measures could harm vulnerable patients and caregivers.
