CMS Imposes Six-Month Pause on New Medicare Hospice and Home Health Provider Enrollments

The Centers for Medicare and Medicaid Services placed a six-month moratorium on new enrollments of hospice and home health agency providers in Medicare, effective immediately. The pause aims to intensify investigations and prevent additional providers from entering categories identified as high-risk for fraud while officials review and remove existing bad actors already in the system.

CMS Administrator Dr. Mehmet Oz described systemic fraud in the hospice and home health sectors, where bad actors have exploited vulnerable Medicare patients. The agency will use the period to deploy advanced data analytics, accelerate targeted investigations and speed removal of suspected fraudulent providers.

The moratorium will not halt services by existing providers or prevent new patients from enrolling in hospice or home health care. Officials said current Medicare beneficiaries will continue receiving care without interruption.

The enrollment freeze is coordinated with Vice President JD Vance’s anti-fraud task force, launched in March. It represents the third such nationwide moratorium implemented by the administration, following earlier pauses on certain durable medical equipment suppliers and a threatened two-year licensing freeze in Minnesota.

CMS has already suspended $70 million in payments to 773 hospices and 23 home health agencies suspected of fraud in Los Angeles. Oz has publicly highlighted a four-block area in the Van Nuys neighborhood containing 42 hospices, calling it an epicenter of fraudulent activity.

In a separate action announced the same day, the administration said it would defer $1.3 billion to $1.4 billion in Medicaid payments to California over widespread fraud allegations. The withheld funds mark the largest healthcare funding threat issued by the administration to date.

“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. This is about protecting patients, restoring integrity, and safeguarding taxpayer dollars." — Dr. Mehmet Oz, CMS Administrator, May 13, 2026 (multiple sources) The Medicare Fee-for-Service improper payment rate fell to an estimated 6.55 percent in fiscal year 2025 from 7.66 percent the prior year. Recent enforcement actions include a May 8 sentencing of former NFL player Joel Rufus French to more than 16 years in prison for his role in a $197 million Medicare fraud scheme and the April seizure of over $2 million from a Pasadena wound care clinic accused of billing for unperformed procedures. Hospice enrollment has grown rapidly in recent years. The number of hospice providers increased by an average of 7.8 percent annually between 2019 and 2023, according to the Medicare Payment Advisory Commission. In 2024 more than 1.8 million Medicare beneficiaries received hospice services at a cost of $28.3 billion.”

Industry representatives expressed concern about the broad approach. Al Cardillo, president and CEO of the Home Care Association of New York State, questioned why home health and hospice were singled out for a blanket moratorium when fraud exists across other health care sectors.

Legal and policy experts said the short-term impact on patient access is expected to be limited but warned that increased scrutiny and inspections will follow. One attorney specializing in health care noted uncertainty about when the moratorium will end and suggested it may represent the first of several regulatory steps.