US Freezes New Home Health and Hospice Medicare Sign-Ups as Fraud Probes Grow

The U.S. government has temporarily frozen new Medicare enrollments for home health agencies and hospice providers nationwide as federal investigators ramp up efforts to combat what officials describe as widespread fraud inside the healthcare system. CMS said the nationwide enrollment freeze took effect on May 13, 2026, and is expected to remain in place for at least six months while fraud investigations continue. New providers entering Medicare will have to wait as authorities intensify investigations into suspicious billing and ownership practices.

Federal officials say the action is aimed at stopping bad actors from exploiting elderly and vulnerable patients while draining billions from taxpayer-funded healthcare programs. CMS Administrator Dr. Mehmet Oz described the issue as “systemic and deeply troubling,” saying fraudulent operators have been manipulating Medicare through fake services, improper billing, and questionable enrollment tactics.

The moratorium applies to new Medicare enrollment applications for home health agencies and hospices, along with certain ownership transfers often associated with fraud investigations. Existing providers already enrolled in Medicare will still be allowed to operate normally during the six-month pause.

Why Officials Say Fraud Became a Serious Concern

According to CMS, home health and hospice care have long been considered high-risk sectors for fraud because services are delivered inside patients’ homes, where direct oversight can be limited. Federal regulators say the relatively low startup costs for these businesses also make it easier for fraudulent operators to quickly open agencies and bill Medicare for questionable or unnecessary care.

Government reports cited by CMS point to years of abuse involving providers allegedly certifying patients for hospice care when they were not terminally ill, paying recruiters to find Medicare beneficiaries, or creating networks of shell companies to hide ownership changes. In some states, the number of hospice providers reportedly surged far faster than patient demand, raising red flags among regulators.

The crackdown also follows recent investigations in places like Los Angeles, where CMS suspended payments tied to hundreds of hospice and home healthcare agencies suspected of fraudulent activity. Officials said those agencies accounted for roughly $1.4 billion in Medicare spending last year, with tens of millions of dollars already frozen during ongoing investigations.

Industry Groups Support Crackdowns, But Warn About Side Effects

Some healthcare industry leaders say stronger oversight is necessary to protect patients and preserve trust in Medicare-funded care. Groups representing hospice providers acknowledged that fraudulent operations can damage the reputation of legitimate agencies that follow federal rules and provide critical services to aging Americans.

At the same time, several organizations warned that a nationwide enrollment freeze could create unintended consequences, especially in rural or underserved communities where healthcare options are already limited. Critics argue that halting all new providers — rather than targeting only suspicious ones — could reduce competition and make it harder for patients to access care quickly.

The National Alliance for Care at Home said regulators should focus on “data-driven” investigations and direct enforcement against fraudulent businesses instead of broad restrictions that may affect legitimate providers operating in good faith. Some experts also noted that temporary enrollment freezes have been used before by both Republican and Democratic administrations when fraud concerns escalated.

A Broader Federal Anti-Fraud Push Is Expanding

The enrollment freeze is part of a wider anti-fraud campaign tied to Vice President JD Vance’s federal anti-fraud task force, which has been increasing scrutiny across Medicare and Medicaid programs in recent months. Officials say the government is using advanced data analytics, enhanced background checks, fingerprint-based screenings, and site inspections to identify suspicious healthcare operations before they can bill Medicare.

CMS previously imposed another six-month moratorium earlier this year targeting certain suppliers of medical equipment and prosthetics, which officials also linked to fraud risks. The agency has additionally pressured states to strengthen Medicaid oversight or risk losing federal funding tied to healthcare programs.

For now, the new moratorium is scheduled to remain in effect through November unless federal officials decide to extend or lift it earlier. CMS says the pause will give investigators time to examine enrollment patterns, track suspicious ownership changes, and strengthen safeguards designed to prevent future abuse inside the Medicare system.