U.S. CMS Imposes Nationwide Moratorium on Home Health and Hospice Enrollments to Combat Fraud

In a sweeping crackdown on healthcare fraud, the U.S. Centers for Medicare & Medicaid Services (CMS) announced today a six-month moratorium on new Medicare enrollments for home health and hospice agencies nationwide. The unprecedented move, effective immediately, targets what CMS Administrator Dr. Mehmet Oz described as “systemic and deeply troubling fraud” in these high-risk sectors, where bad actors have allegedly exploited vulnerable Medicare patients and drained taxpayer funds.

The moratorium applies to all initial Medicare enrollments and certain changes in majority ownership—measures CMS says are frequently abused to obscure control by fraudulent operators. While current providers remain unaffected and can continue serving patients, the freeze aims to prevent new bad actors from entering the system while CMS accelerates investigations and removes suspected fraudulent entities. The agency emphasized that the nationwide scope will prevent fraudsters from evading detection by relocating across state lines.

This action marks the third major enrollment freeze under CMS’s intensified fraud prevention efforts, following a similar six-month moratorium on certain durable medical equipment, prosthetics, orthotics, and supplies (DMEPOS) companies announced earlier this year. With these measures in place, CMS has taken what it calls “some of the most significant fraud prevention actions in the agency’s history.”

“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. 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. What we have is about protecting patients, restoring integrity, and safeguarding taxpayer dollars.”

According to the official CMS announcement, the moratorium is part of a coordinated federal effort to combat fraud, waste, and abuse in Medicare programs. The agency will deploy advanced data analytics and targeted investigations to identify and remove providers suspected of fraudulent activity during the six-month period. The freeze may be extended in six-month increments if deemed necessary.

While CMS frames the moratorium as a necessary step to protect Medicare beneficiaries and taxpayers, industry groups have raised concerns about unintended consequences. The National Alliance for Care at Home (the Alliance) warned that broad enrollment freezes fail to distinguish between compliant providers and bad actors, potentially reducing competition and slowing innovation—particularly in rural areas where access to care is already limited.

Industry Divided: Fraud Prevention vs. Patient Access

Jennifer Sheets, CEO of the Alliance, criticized the moratorium in a statement, arguing that CMS should instead focus on data-driven, risk-based oversight and enforcement of existing mechanisms. “CMS must use boots-on-the-ground surveys and targeted enforcement to root out blatantly bad actors without punishing high-quality providers operating in great faith,” Sheets said.

The Alliance’s position reflects broader industry concerns. A letter signed by the Alliance, LeadingAge, LeadingAge California, and the California Association for Health Services at Home (CAHSAH) emphasized that the “overwhelming majority of providers serve their communities with integrity” and urged CMS to preserve access to high-quality care.

Hilary Loeffler, Vice President of Policy and Regulatory Affairs for the Alliance, previously told Hospice News that broad enrollment moratoria are ineffective at addressing fraud. “I don’t think broad enrollment moratoria work, quite frankly,” Loeffler stated. “CMS still needs to go in and take action and clean up the fraud in those spaces.”

Who Is Affected and What Happens Next?

The moratorium impacts:

• New applicants: All applications for initial Medicare enrollment in home health and hospice agencies are frozen for six months.
• Ownership changes: Certain changes in majority ownership—often used to obscure fraudulent control—are also blocked.
• Existing providers: Currently enrolled agencies can continue operating and serving Medicare beneficiaries without interruption.
• Patients: Medicare beneficiaries relying on home health or hospice services should experience no disruption in care, though access concerns may arise in underserved areas.

During the moratorium, CMS will:

• Accelerate the removal of providers suspected of fraud.
• Intensify investigations using advanced data analytics.
• Monitor for fraudulent activity across state lines.

The freeze follows CMS’s earlier moratorium on DMEPOS companies, part of a broader “whole-of-government” effort led by Vice President JD Vance’s Anti-Fraud Task Force. CMS has framed these actions as essential to restoring integrity to Medicare programs and protecting vulnerable patients.

Expert Perspective: Balancing Fraud Prevention and Patient Care

Dr. Helena Fischer, Editor of Health at World Today Journal, notes that while CMS’s actions are well-intentioned, the moratorium raises critical questions about collateral damage. “Fraud in home health and hospice is a serious issue, but broad freezes risk harming legitimate providers—especially in rural communities where options are already scarce,” Fischer observes. “The challenge for CMS will be ensuring that fraud prevention doesn’t come at the cost of patient access.”

Fischer also highlights the need for transparency in CMS’s enforcement process. “Patients and providers alike deserve clarity on how suspected fraud is identified and investigated. Without it, the risk of overreach—and the potential for wrongful sanctions—remains a concern.”

Where to Find Official Updates

For the latest information on CMS’s fraud prevention efforts, including the moratorium’s status and any extensions, visit:

• CMS Press Release on Moratorium
• CMS Fraud, Waste, and Abuse Resources
• Medicare Beneficiary Information

Key Takeaways

• The CMS moratorium is a six-month freeze on new home health and hospice Medicare enrollments, effective immediately.
• Existing providers and patient care remain unaffected, but industry groups warn of reduced competition and access concerns.
• CMS will use data analytics and targeted investigations to remove suspected fraudulent providers during the freeze.
• The action is part of a broader federal crackdown on Medicare fraud, including earlier moratoriums on DMEPOS companies.
• Stakeholders urge CMS to focus on risk-based oversight rather than broad enrollment freezes.

What’s Next?

The next critical checkpoint is the six-month review period, during which CMS will assess whether the moratorium achieves its goals or if further extensions are necessary. The agency has not yet announced a specific date for this review, but updates will be posted on the CMS website. In the meantime, providers and beneficiaries are advised to monitor official communications for any changes to the moratorium’s scope or duration.

We welcome your insights on this developing story. How do you think CMS should balance fraud prevention with patient access? Share your thoughts in the comments below or on our social media channels.