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Analysis Personal Injury

Fraud units can now pursue abuse of Medicaid patients in their own homes

For decades, the state units that prosecute Medicaid fraud could use federal funds to pursue patient abuse mainly in facilities such as nursing homes. A 2020 change in federal law extended that authority to abuse and neglect of Medicaid patients in their own homes and other noninstitutional settings. The latest federal report on the units shows personal care attendants among the providers most often convicted in abuse and neglect cases.

What changed in federal law

Every state has a Medicaid Fraud Control Unit, usually inside the state attorney general’s office. The units are funded mostly by the federal government and are overseen by the HHS Office of Inspector General (HHS OIG).

According to OIG’s annual report for fiscal year 2025, since December 27, 2020 the units may receive federal matching funds to investigate and prosecute abuse or neglect of Medicaid enrollees in a noninstitutional or other setting. The change came from section 207 of Division CC of the Consolidated Appropriations Act, 2021. The federal rules for the units are in 42 CFR Part 1007.

In practical terms, this means a unit can now take on a case involving a personal care aide who abused a Medicaid patient at home, not only an aide working in a nursing home or similar facility.

What the 2025 numbers show

OIG reported that the units won 329 convictions for patient abuse or neglect in fiscal year 2025, out of 1,185 total convictions. The report says patient abuse and neglect includes sexual and physical abuse, but it does not say how many convictions involved sexual abuse.

The most common provider types in abuse and neglect convictions were:

  • Nurse’s aides: 71
  • Nurses: 60
  • Personal care service attendants: 40
  • Family members or guardians: 28
  • Unlicensed mental health counselors: 19

Personal care attendants usually help people with bathing, dressing, meals and other daily tasks, often in the person’s home. The report does not say where each crime happened, so these numbers cannot show exactly how many cases arose in homes.

An example of how these cases begin

A January 2026 announcement from the South Carolina Attorney General’s Office shows how such a case can start. The office said its Vulnerable Adults and Medicaid Provider Fraud unit, working with local police, arrested a home care aide. It alleges that between May and August 2025 the aide committed sexual battery against a minor and a vulnerable adult at a private home in Greenville where the aide was employed to provide care.

These are charges only. The aide has not been convicted and is presumed innocent, which is why CBW is not naming the person. We mention the case only because it shows a fraud unit handling an abuse allegation that arose in a private home.

Why home settings are harder to police

Abuse at home often happens with no other staff around. The person receiving care may depend on the caregiver and may not be able to call for help. There is no front desk, no roommate and often no camera.

Oversight is also split. Medicare home health agencies must follow federal rules on patient rights, abuse reporting and aide supervision. Many personal care programs are run by states through Medicaid, and some caregivers are hired directly by families. Background-check rules for home care workers are set mostly by the states and vary. Our home health care sexual abuse page explains who may be responsible in these different arrangements.

What this means for survivors and families

If you believe a caregiver abused you or someone you love at home, you can report it to local police, Adult Protective Services or your state’s Medicaid Fraud Control Unit. A criminal case is separate from any civil claim, and deadlines for civil claims vary by state. A lawyer can review the specifics. You can learn more in our sexual assault and abuse section.

This article is general information about how these cases work. It is not legal advice, it does not create an attorney-client relationship, and no two claims are alike. If something here sounds like your situation, the useful next step is a conversation about the facts.

Sources and citations

Statutes, regulations, agency material and decisions referred to above.

  1. Medicaid Fraud Control Units Annual Report: Fiscal Year 2025 (OEI-09-26-00140)U.S. Department of Health and Human Services, Office of Inspector GeneralPrimary source for the December 27, 2020 expansion of MFCU authority to noninstitutional settings, FY2025 conviction totals and provider types.
  2. 42 CFR Part 1007 — State Medicaid Fraud Control UnitsElectronic Code of Federal Regulations (National Archives)Federal regulations governing the units, including their authority over patient abuse and neglect.
  3. Attorney General announces home care aide charged with sexually assaulting minor and vulnerable adultSouth Carolina Office of the Attorney GeneralAnnouncement of an arrest and charges only; the defendant is presumed innocent and is not named here.
  4. Medicaid Fraud Control Units (MFCU)U.S. Department of Health and Human Services, Office of Inspector GeneralBackground on the units and how to contact them.

Vetted by

Stefan Rest, managing director of CBW Law

Stefan Rest

Managing Director, CBW Law

Stefan Rest has spent more than two decades advocating for consumers and helping people understand how the law may provide a path forward when they’ve been wronged. As Managing Director of CBW Law, he oversees client relations, the firm’s national law-firm network and new partnerships. He writes about developing litigation and consumer legal issues because the right information can help people recognize when their own story may matter.

Attorney advertising. The content of this website may be considered attorney advertising under the rules of certain jurisdictions. The information on this website is for general information purposes only and should not be taken as legal advice for any individual case or situation. Viewing this site does not create an attorney-client relationship. Prior results do not guarantee a similar outcome. Statutes, regulations and case law change, and the law differs from state to state.