CMS: Moratorium on Hospices and Home Health

On May 13, 2026, the Centers for Medicare & Medicaid Services (CMS) imposed a nationwide six-month moratorium on new Medicare enrollments for hospice providers and home health agencies (HHAs). The action follows a recent executive order creating a federal task force to prevent fraud and disrupt fraud networks.

Scope of the Action

The new restrictions apply nationwide to new hospice and HHA Medicare enrollments, including certain ownership changes that require a new enrollment. They cover all states, territories, and the District of Columbia and expand on earlier, more limited restrictions.

New hospices and hospice practice locations
New HHAs and HHA branches or practice locations
Providers subject to the “36-month rule,” covering non-exempt majority ownership changes within 36 months of initial enrollment or the latest such change

The moratoria do not apply to existing providers, applications filed before May 13, 2026, or routine updates that do not require a new enrollment.

Routine provider updates, such as phone numbers
Indirect ownership changes
Ownership changes that do not require new enrollment

Routine practice location changes generally remain allowed unless a provider relocates into a covered area. In effect, expansion beyond an approved service area may be barred, while relocation within an approved area may still be treated as routine.

The moratorium lasts six months initially, but CMS may extend it in six-month increments if fraud concerns persist. Based on past practice, an extension of at least a year appears likely.

Providers seeking enrollment after the new provider restriction ends may face heightened scrutiny. Applications filed within six months after it is lifted may be placed in a high-risk screening category, requiring added owner screening and survey scrutiny for new enrollments or locations nationwide.

CMS has also published an FAQ on the moratoria.

More Enforcement to Come

The moratoria are only one part of a broader enforcement push. CMS says it will intensify targeted investigations, expand data analytics to identify suspected fraud, and increase audits, including possible pre-payment audits. In serious cases, adverse findings could lead to recoupments, revocation of billing privileges, or termination of Medicare enrollment.

CMS Reasoning

CMS says the moratoria respond to fraud and abuse concerns in hospice and home health, including kickbacks, improper certifications, enrollment of ineligible patients, and billing for services not provided, not medically necessary, or inadequately documented. CMS also cited hospice “churn and burn” schemes and home health vulnerabilities, such as low startup costs and limited supervision, that make these sectors prone to fraud, waste, and abuse.

Medicaid Fraud Enforcement

The enforcement push extends beyond Medicare. The same day CMS announced the moratoria, the White House said it would withhold $1.3 billion in Medicaid reimbursements to California over concerns about inadequate efforts to address hospice fraud. The move, also tied to the task force, signals a willingness to use federal funding to press states to strengthen anti-fraud enforcement. Vice President JD Vance said other states could face similar suspensions, citing the recent withholding of about $243 million from Minnesota over allegedly suspect claims.

Possible Additional State-Level Engagement

CMS is also urging states to consider their own hospice or HHA enrollment moratoria for Medicaid and CHIP. It says it will provide consultation and technical assistance to states and territories weighing those measures, signaling possible broader state-level enforcement and enrollment limits.