Ohio Medicaid Moratorium Cuts New Home Care Agencies 100% as Fraud Probes Expand

{"The policy response followed allegations of improper billing in Ohio's consumer-directed program, where family members can serve as paid aides. State data show home care workforce turnover already exceeds 60% annually, with median wages at $16.78. The moratorium blocks new agencies while existing ones face stricter electronic visit verification audits and ownership rules under House Bill 795.","Similar restrictions in Florida and California have coincided with 8-12% drops in authorized home care hours per CMS waiver reports from 2024-2025. Observational analyses from the Kaiser Family Foundation link such provider limits to a 15-20% rise in nursing facility admissions among working-age disabled adults within two years, driven by documented shortages rather than changes in medical need.","Federal emphasis under CMS Administrator Mehmet Oz on case-by-case fraud reviews amplifies state-level caution. This pattern repeats across Republican-led states with large HCBS waivers, where audit costs and compliance burdens fall heaviest on small providers serving complex cases like spinal muscular atrophy or cerebral palsy.","Without reversal or supplemental wage funding, the next measurable outcome will be increased institutional placements tracked through state 1915(c) waiver metrics by Q1 2027."}