In a significant escalation of the Trump administration's "war on fraud," the Centers for Medicare &Medicaid Services (CMS) announced a sweeping, nationwide moratorium on the enrollment of new hospice and home health providers effective May 13, 2026.This move marks another move in a series of aggressive actions by the White House Anti-Fraud Task Force, led by Vice President J.D. Vance, signaling a zero-tolerance approach to what the administration characterizes as "systemic and deeply troubling" exploitation of the Medicare program.

The Moratorium

Effective May 13, 2026, the nationwide moratorium halts the Medicare enrollment of all new hospice agencies and home health agencies (HHAs) for an initial period of six months. Under federal law, specifically Section 1866(j)(7) of the Social Security Act (enacted via Section6401 of the Affordable Care Act) and 42 C.F.R. § 424.570, the Secretary of Health and Human Services has the authority to impose such a freeze when it is deemed necessary to prevent or combat fraud, waste, or abuse.

The moratorium is comprehensive. It applies to all 50 states, the District of Columbia, and U.S. territories. During this six-month window, CMS will not process new Medicare enrollment applications. Furthermore, the freeze extends to certain Changes of Ownership(CHOWs)—specifically those where a hospice or HHA seeks a majority ownership change within 36 months of its initial enrollment. CMS has indicated that the moratorium may be extended in additional six-month increments if the underlying fraud risks are not sufficiently mitigated. The moratorium does not apply to changes in practice location, provider information, or changes in ownership that do not require initial enrollment.

A Pause to Recalibrate Fraud, Waste, and Abuse Oversight

The administration’s justification for this nationwide freeze is based on data from the Anti-Fraud Task Force regarding persistent, systemic vulnerabilities within the post-acute care sector. CMS has identified significant concerns regarding high volumes of fraudulent billing and identity theft, particularly in areas such as Arizona, California, Nevada, and Texas, where the rapid proliferation of new hospice and home health providers has outpaced regulatory oversight.

CMS cites its statutory responsibility to protect the Medicare Trust Fund as the primary driver for this action. The Task Force reported that nearly $1.4 billion has already been withheld from providers in recent months. By pausing new entries, the administration intends to deploy advanced data analytics and conduct nationwide site visits to "scrub" the current provider list and remove bad actors who are already inside the system. The administration has positioned this as a targeted effort to stabilize the program and ensure that resources are directed toward legitimate patient care.

HHA and Hospice Providers Must Protect Their Business Today

The imposition of a nationwide moratorium creates a volatile landscape for healthcare investors and legitimate providers alike. For established agencies with high compliance standards, the moratorium may temporarily reduce competition from new market entrants, but no one will be safe from enhanced scrutiny.

• Heightened Oversight: The moratorium is not just a pause on new players; it is a signal of "open season" on existing ones. Current providers should prepare for an era of ongoing documentation audits, "accelerated removal," and increased site audits.
• Valuation and Transactions: Existing Medicare provider numbers have effectively become capped assets. We expect to see a surge in the valuation of currently enrolled agencies, though any transaction involving a "young" agency (under 36 months old) will face intense regulatory scrutiny or a complete block under the CHOW restrictions.
• Access to Care: Industry advocates have already raised concerns that a nationwide freeze—rather than a targeted, geographic one—could inadvertently harm patients in rural or underserved areas where new hospice or home health capacity is legitimately needed.

Now is the time for HHA and hospice providers to ensure their compliance programs and data metrics are robust enough to withstand the heightened oversight environment that has become the new nationwide standard. CMS has already proven through its recent enforcement efforts in California that a single data point is a sufficient basis for it to accuse your business of a “credible allegation of fraud” and summarily suspend all of your Medicare reimbursements. We predict intensive documentation audits will become the new cost of doing business as agencies will have to invest considerable resources into warding off enormous overpayment demands.

Health Law Alliance has a proven track record of fighting regulatory overreach. The White House’s Anti-Fraud Task Force has made its message clear: providers that wait for a CMS audit, suspension, or revocation to engage legal counsel have already fallen strategically behind. Our attorneys have the hospice and HHA industry know-how to assist with all aspects of this evolving regulatory landscape now; schedule a consultation to ensure your compliance program can stand up to CMS’s industry enforcement purge.