CMS Extends Moratorium On New Healthcare Services In Some Cities

Date: July 27, 2015

Miami Among Cities With Six-Month Extension On Moratorium

The Federal Centers for Medicare and Medicaid Services has extended its moratorium on the addition of “new Medicare home healthcare agencies, subunits and ambulance suppliers in a slew of major cities across the country,” Modern Healthcare reported. Miami and Fort Lauderdale are among the cities where the moratorium has been extended for an additional six months. The extension comes due to what the HHS Office of Inspector General called “a significant potential for fraud, waste and abuse” that “continues to exist in these geographic areas.” In its notice, CMS said it “CMS consulted with the HHS (Office of Inspector General) regarding the extension of the moratoria on new (home healthcare agencies) and ground ambulance suppliers in all of the moratoria counties, and HHS-OIG agrees that a significant potential for fraud, waste and abuse continues to exist in these geographic areas.” In extending the moratorium, CMS said it “relied on the experience of law enforcement and its own data analysis in” its decision. The moratoria has been in place since 2013, Modern Healthcare noted, and also includes Dallas, Detroit, Houston, and Chicago. The moratoria are allowed as part of Obamacare.

What Happens Next

The moratoria will be extended starting July 29 and “last for at least another six months,” Modern Healthcare noted.

What This Means For Small Businesses

Burdensome government regulations have long presented small businesses in the healthcare sector many challenges. The latest extension of a moratorium on adding new suppliers in the Miami area is harmful to small business owners and entrepreneurs in the city who are looking to capitalize on the growing consumer demand for health services.

Additional Reading

NFIB previously noted Florida’s battle with Federal regulators over healthcare regulations.

Note: this article is intended to keep small business owners up on the latest news. It does not necessarily represent the policy stances of NFIB.

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