WASHINGTON — The Centers for Medicare & Medicaid Services on May 13 announced a six-month nationwide moratorium on new Medicare enrollment for home health agencies and hospices, citing widespread fraud in both sectors. Healthcare organizations warn the freeze could hinder hospital discharge planning, particularly in rural and underserved communities already facing limited post-acute care options.
CMS Administrator Dr. Mehmet Oz characterized the scope of fraud as severe.
“We’ve seen systemic and deeply troubling fraud in the hospice and home health space, with bad actors exploiting some of our most vulnerable Medicare patients and stealing money from the American taxpayer,” Oz said. “This is about protecting patients, restoring integrity, and safeguarding taxpayer dollars.”
The moratorium, effective immediately upon announcement, blocks all new Medicare enrollment applications from home health agencies and hospices. Existing Medicare-enrolled providers are not affected and may continue operations. CMS can extend the freeze in successive six-month increments if fraud risks persist.
Fraud Driving the Action
CMS said the measure is part of a broader anti-fraud initiative linked to Vice President JD Vance’s Anti-Fraud Task Force. In Los Angeles alone, the agency suspended $70 million in payments to 773 hospices and 23 home health agencies suspected of fraudulent billing — providers responsible for $1.4 billion in Medicare spending last year.
Nationwide, Medicare program integrity savings reached a record $41.9 billion in fiscal year 2025, a 59% increase over the $26.3 billion recovered in fiscal year 2024. CMS said its return on investment for program integrity enforcement hit $22.3 for every dollar spent, the highest ever recorded.
Rapid sector growth contributed to fraud exposure. The number of hospice providers expanded at 7.8% annually between 2019 and 2023. More than 1.8 million Medicare beneficiaries received hospice services in 2024.
The moratorium was formally published in the Federal Register on May 15, 2026.
Hospitals Sound Discharge Alarm
While the freeze does not affect established providers, healthcare systems say it limits growth of a sector hospitals rely on for patient transitions — raising concerns that constrained capacity will delay discharges.
The American Hospital Association expressed support for fraud prevention efforts but warned of unintended consequences.
“There are many rural and underserved areas of the country where hospitals struggle to find appropriate discharge locations for patients, and home health agencies and hospice providers are essential to ensuring timely and safe next levels of care,” said Ashley Thompson, the AHA’s senior vice president of public policy analysis and development. The AHA called on CMS to pursue “a more targeted, data-driven approach” rather than broad categorical restrictions.
Discharge gaps already exist independent of the moratorium. An analysis of 2023 Medicare claims found that more than a third of Medicare fee-for-service beneficiaries referred to home health following hospitalizations did not receive services within seven days of discharge.
Modern Healthcare reported the freeze is already preventing established operators from expanding into new locations — a limitation analysts say could widen care gaps in underserved markets.
Industry Pushes Back
Home health and hospice trade groups disputed the moratorium’s scope, arguing it conflates legitimate providers with bad actors.
Al Cardillo, president and CEO of the Home Care Association of New York State, said the policy applies an unequal standard to home-based care compared with other essential services.
“CMS likely would never consider a blanket nationwide moratorium on new emergency departments, oncology practices, birthing centers, mental health clinics, dialysis providers, or other essential care settings,” Cardillo said. “Such an approach would rightly be viewed as unjustifiable and harmful to patient access. Home health and hospice should be treated with the same level of respect.”
Legal Experts Warn of Broader Enforcement
Healthcare attorneys say the moratorium may be the opening move in a sustained regulatory crackdown.
“We don’t know when this moratorium will end,” said Michelle Huntsman, a partner at Holland & Knight. “This is probably just the first lever that Medicare is going to pull.”
CMS has not provided a public timeline for when new enrollment applications might resume.
Why This Matters for Home Care
A tightening home health market means families coordinating post-hospital care may face longer waits and fewer provider options at discharge. For caregivers preparing a home environment before a loved one returns from the hospital, having the right equipment already in place — including a home hospital bed — can help bridge coverage gaps and support a safer, more comfortable recovery at home.
