CMS Seeks New Power to Remove 'Problematic' Medicare Providers

CMS is proposing to expand its own enforcement muscle. In the CY 2027 Home Health Prospective Payment System proposed rule, issued July 1, the agency asks for new authority to remove "problematic" and noncompliant providers from Medicare and to recoup their payments, according to Becker's Hospital Review. The power would apply across the entire Medicare program, not just home health.

The rule pairs that enforcement push with money. CMS proposes raising Medicare home health payments by 2.4% in 2027, a roughly $420 million increase. The combination is notable: higher reimbursement alongside a stronger ability to cut off agencies that violate program rules.

In practice, home health agencies and other Medicare providers should expect tighter compliance scrutiny and faster consequences for violations. The removal and recoupment authority signals CMS wants quicker tools to act on fraud, abuse, and noncompliance rather than relying solely on existing, slower processes. Providers should track the final rule closely, since the new powers could reshape how quickly agencies lose Medicare eligibility.