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Anita Browning, FRP | Florida Healthcare Law Firm
Historically, the HHS Office of Inspector General (OIG) acted as the sole gatekeeper for excluding bad actors from federal health care programs under Section 1128 of the Social Security Act. That dynamic has fundamentally shifted.
HHS Secretary Robert F. Kennedy Jr. officially delegated independent Section 1128 exclusion authority directly to the Centers for Medicare & Medicaid Services (CMS). Working alongside broadened revocation powers under 42 C.F.R. § 424.535, CMS is no longer just processing enrollment forms, it operates as a primary enforcement agency with “force multiplier” authority to cut off billing privileges and exclude entities entirely. The mechanics of how providers are being caught, where screening gaps exist, and the active enforcement push demonstrate why compliance programs must adapt.
Rather than relying on retrospective audits months after money has gone out the door, CMS has overhauled its detection infrastructure to catch questionable entities before claims are paid.
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