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Temporary CMS freeze on new Medicare hospice enrollment
A temporary CMS freeze on new Medicare hospice enrollment, imposed under 42 CFR 424.570 to combat fraud; the current moratorium, effective May 13, 2026, is nationwide rather than limited to specific counties or metro areas.
A hospice enrollment moratorium is a temporary CMS freeze on new Medicare enrollment for hospices, imposed under 42 CFR 424.570 to combat fraud, waste, and abuse. On May 13, 2026, CMS imposed a six-month nationwide moratorium on new home health agency and hospice enrollments.
CMS's moratorium authority is in 42 CFR 424.570, which lets CMS impose temporary enrollment moratoria on categories of providers or suppliers when needed to prevent or combat fraud, waste, and abuse [1]. On May 13, 2026, CMS implemented a temporary nationwide moratorium on the enrollment of new home health agencies and hospices, effective for six months and extendable in additional six-month increments if CMS deems it necessary (https://www.cms.gov/newsroom/press-releases/cms-announces-aggressive-nationwide-crackdown-fraud-six-month-hospice-home-health-agency-enrollment; https://www.cms.gov/files/document/qso-26-11-hha-hospice-original-release-2026-05-20.pdf).
The moratorium applies to initial enrollment applications and to non-exempt changes in majority ownership (CIMOs) under 42 CFR 424.550(b); any such application submitted after the moratorium's effective date is denied [2]. It does not affect existing enrolled hospices, which continue to deliver services and bill Medicare, and under 42 CFR 424.570(a)(1)(iv) it does not apply to an enrollment application received by the Medicare contractor before the effective date [2]. Moratoria have historically been used both geographically (targeting specific high-risk metropolitan areas) and, as in May 2026, nationwide.
The nationwide moratorium blocks de novo expansion and acquisitions structured as non-exempt changes in majority ownership, while leaving existing enrollments, service delivery, and billing unaffected. CMS's authority to renew the moratorium in six-month increments means the freeze's duration is indeterminate from the outset. The moratorium reshapes the hospice M&A market by creating structural barriers to CIMO-triggering transactions and attributing scarcity value to already-enrolled providers. Transaction structures that avoid a change of majority ownership under 42 CFR 424.550(b) are not blocked by the moratorium.
Yes — CMS imposed a temporary nationwide moratorium on new home health agency and hospice enrollments on May 13, 2026, effective for six months and extendable in six-month increments [3].
No — moratoria apply to new enrollment; existing enrolled hospices continue to deliver services and bill Medicare without interruption [2].
It blocks non-exempt changes in majority ownership under 42 CFR 424.550(b), so acquisitions structured as a change of majority ownership are subject to denial during the moratorium [2].
CMS acts under 42 CFR 424.570, which permits temporary enrollment moratoria on categories of providers or suppliers to prevent or combat fraud, waste, and abuse [1].
Vitalis Care is the end-of-life care app that helps hospices deliver compassionate care — while staying on top of schedules, field operations, documentation, compliance, and reimbursement.
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