HHS Delegates Exclusion Authority to CMS as Q1 2026 Revocations Surge 40%
On July 21, 2026, HHS Secretary Kennedy announced that CMS now has direct exclusion authority, previously held only by the HHS Office of Inspector General. CMS revoked 1,413 Medicare and Medicaid providers and suppliers in Q1 2026, a 40% increase over prior years and the largest quarterly surge on record. The delegation gives CMS "force multiplier" capacity to exclude providers from federal health programs based on fraud, abuse, or program integrity concerns. Medicaid managed care organizations must screen networks for excluded providers and may face increased mid-year terminations and provider adequacy challenges as revocation volumes accelerate.
Medicaid MCOs must immediately verify provider eligibility against expanded exclusion lists and prepare for network disruption as CMS ramps up enforcement using new delegated authority.
Managed Care
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