CMS Freezes New Medicare Enrollments for Hospices, Home Health Nationwide
CMS has imposed a nationwide six-month moratorium on new Medicare enrollments for hospices and home health agencies.
Why it matters: Healthcare legal counsel must rapidly assess how these restrictions affect transactions, ownership changes, and regulatory compliance, especially given CMS' intent to intensify fraud investigations. The moratorium could impact acquisition strategies and operational planning for providers across all states.
- CMS announced the six-month moratorium on May 13, 2026, with immediate effect.
- The freeze covers all new Medicare enrollments and most ownership changes for hospices and home health agencies nationwide.
- Existing providers can continue operations and billing; only new enrollments and certain transfers are halted.
- CMS is escalating targeted investigations, analytics, and enforcement as part of broader anti-fraud measures.
The Centers for Medicare & Medicaid Services (CMS) initiated a nationwide moratorium on May 13, 2026, blocking all new Medicare enrollments and many majority ownership changes for hospices and home health agencies (HHAs) across the United States. The move responds to what CMS Administrator Dr. Mehmet Oz described as "systemic and deeply troubling fraud" plaguing the hospice and home health sectors.
- The moratorium—set for an initial six months with the possibility of six-month extensions—applies to every state, territory, and the District of Columbia.
- Current providers remain unaffected, able to continue delivering and billing for services under their existing Medicare enrollments.
- The freeze also restricts changes in ownership deemed common avenues for bad actors to mask control.
Citing the exploitation of vulnerable Medicare patients and taxpayer funds, Dr. Oz stated, "Today we're shutting the door on fraud—preventing new bad actors from entering Medicare while we aggressively identify, investigate, and remove those already exploiting them."
During the moratorium, CMS will intensify its investigative efforts, leveraging advanced data analytics and aiming to swiftly remove providers suspected of fraud. In Los Angeles alone, roughly 800 hospices and HHAs drove $1.4 billion in Medicare spending last year, with $70 million already suspended due to irregularities. CMS has previously revoked or deactivated hundreds of providers engaged in improper activity.
While the American Hospital Association voiced support for anti-fraud action, its senior vice president, Ashley Thompson, cautioned against "subjecting entire categories of providers or claims to restrictions due to the actions of a limited number of bad actors."
CMS also urged states to consider Medicaid and CHIP moratoria tailored to local compliance risks, as part of a larger anti-fraud policy push prior to the 2026 elections, including a $1.3 billion Medicaid funding deferral for California.
By the numbers:
- 800 — Estimated number of LA-area hospices and HHAs responsible for $1.4B in Medicare spending last year
- $70 million — Medicare funds suspended from LA-area providers due to suspected fraud
- $1.3 billion — Medicaid funding deferred for California over fraud concerns
Yes, but: Some industry leaders warn that blanket moratoria could restrict access or burden good-faith providers, causing unintended operational disruptions.
What's next: CMS may extend the moratorium in additional six-month increments, and will ramp up enforcement throughout the freeze period.