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CMS Launches Nationwide 6-Month Moratorium on New HHA and Hospice Enrollments

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Why it matters

The Centers for Medicare & Medicaid Services announced a nationwide moratorium on new Medicare enrollments for home health agencies and hospices, effective May 13, 2026. The temporary freeze, initially set for six months and renewable in similar increments, will deny all new initial enrollment applications in these two sectors. CMS invoked authority under Social Security Act section 1866(j)(7) and related Affordable Care Act provisions, stating the action follows consultation with federal law enforcement and targets what the agency characterizes as high-risk provider categories vulnerable to fraud, waste, and abuse.

The moratorium applies only to new enrollments and certain ownership-change transactions treated as new enrollments under Medicare rules. Existing certified home health agencies and hospices retain their current enrollments and billing authority. The specific mechanics of how CMS will treat transactions involving changes of ownership, restructurings, and other corporate events remain to be clarified in forthcoming guidance.

Attorneys advising home health and hospice providers, investors, and acquirers should immediately assess pending enrollment applications and planned market-entry or expansion strategies. The moratorium directly affects M&A activity, new provider launches, and transactions involving ownership changes. Practitioners should monitor CMS guidance for exceptions, clarifications on what constitutes a "new" enrollment, and any signals about the agency's enforcement priorities that may inform compliance posture and deal structuring going forward.

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