Harshbarger Statement on Healthcare Fraud Crackdown

Washington, D.C. - Congresswoman Diana Harshbarger (R-TN), Vice Chair of the Subcommittee on Health of the House Energy and Commerce Committee, released the following statement applauding the Trump administration's sweeping crackdown on Medicaid and Medicare fraud:

"For years, fraudsters have been looting Medicaid and Medicare while Washington looked the other way, and anyone who dared call it out was attacked as heartless or extreme.

"What's being uncovered across this country isn't some anomaly-it's what happens when there's zero accountability and zero consequences.

"These programs were built to serve the most vulnerable Americans, not to be a feeding frenzy for bad actors and fake shell companies stealing billions from taxpayers and the people who need them most.

"I'm proud to stand with President Trump and Vice President Vance's zero-tolerance action that was long overdue. I look forward to working with the administration in strengthening the integrity of government programs and fighting fraud through legislative action, investigative efforts, and constituent advocacy.

"The era of Washington looking the other way is over, and we're coming for every last stolen dollar."

BACKGROUND:

Earlier this week, Vice President JD Vance, leading the White House Anti-Fraud Task Force, delivered an ultimatum to all 50 states to fully comply with anti-fraud statutes or risk losing federal Medicaid funding. The Trump administration launched a nationwide audit of state Medicaid Fraud Control Units (MFCUs)-state-level watchdogs established and funded under federal law-requiring states to demonstrate they are aggressively prosecuting Medicaid fraud. States that fail to cooperate could see federal funding put in jeopardy.

In coordination with the Anti-Fraud Task Force, the Centers for Medicare & Medicaid Services (CMS) announced a six-month, nationwide moratorium on new Medicare enrollment for hospices and home health agencies-freezing enrollment in two of the highest-risk categories for fraudulent activity. The administration has already cut off approximately 800 hospices suspected of fraud, withholding $1.4 billion in payments nationwide. According to CMS Administrator Dr. Mehmet Oz, it is believed that at least half of the hospices in the greater Los Angeles area are fraudulent, with CMS suspending payments to 773 hospices and 23 home health agencies in Los Angeles alone, representing $70 million in suspended funds. Earlier this year, a similar moratorium was implemented for durable medical equipment, prosthetics, orthotics, and supplies companies.

The crackdown follows a series of high-profile fraud investigations, including the Daily Wire's " Medicaid Millionaires " investigation exposing billions in Medicaid fraud across Ohio, where thousands of shell home health companies billed taxpayers for chores, cooking, and companionship with zero verification or oversight. The administration previously halted nearly $260 million in Medicaid funding to Minnesota following allegations of widespread program abuse.

House Republicans took a critical first step to address systemic Medicaid fraud and abuse through the Working Families Tax Cuts , which included targeted provisions to strengthen oversight, restore program integrity, and ensure Medicaid serves the Americans it was built for.

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