The federal freeze on new Medicare hospices and home health agencies will last another six months, into May 2027, the Centers for Medicare & Medicaid Services announced Nov. 12. The agency said fraud in both sectors persists, but it eased one restriction, allowing agencies already in Medicare to add new practice locations.
The extension does not affect patients already receiving hospice or home health care. CMS said in its press release that the extensions will not affect existing Medicare enrollments and that currently enrolled providers can keep delivering services.
For families arranging end-of-life care for a parent or home nursing after a hospital stay, the practical message is reassuring but specific. Established agencies remain open to new patients and can now grow into new areas, while brand-new agencies still cannot enroll in Medicare.
Six More Months, With One Door Reopened
CMS first imposed the nationwide moratoria on May 13, 2026. The extension continues to block initial Medicare enrollment applications for new hospices and home health agencies, along with certain changes in majority ownership, Becker’s reported.
The change involves locations. Under the original freeze, existing agencies could not add a practice location. Now, currently enrolled agencies can add branches, satellite offices, and other locations in the same state under their existing enrollment, and can resubmit applications for locations that were denied, Home Health Care News reported.
“Fraud in hospice and home health persists,” CMS Administrator Dr. Mehmet Oz said in the agency’s news release, adding that the agency’s work “isn’t finished.”
The freeze applies to Medicare only, since Medicaid moratoria remain with the states. Louisiana, Nevada, Ohio, Pennsylvania and Rhode Island have imposed hospice moratoria, with Ohio and Rhode Island also covering home health agencies, according to an industry summary of state moratoria.
Fraud Concerns Behind the Extension
CMS said the circumstances that led to the freeze “have not yet abated.” The agency said it needs more time to monitor providers for signs of fraud and take actions such as payment suspensions and revocations.
In October, a two-day CMS site visit operation in California led to 145 provider revocations tied to more than $703 million in Medicare and Medicaid payments. A related home health payment rule finalized this month also makes revocations retroactive to the date of noncompliance, which lets CMS recover payments made to noncompliant providers.
When the freeze began in May, federal officials said the goal was to prevent bad actors from entering the system, Bloomberg reported. Common schemes alleged in enforcement cases include kickbacks for referrals, enrolling patients who are not eligible, and billing for care that was not provided.
The freeze also has costs. About 250 home health agencies and 50 hospices have applied to join Medicare but have not been approved during the moratorium, CMS deputy administrator Kim Brandt said at a recent industry conference, according to one report.
Families Using Hospice or Home Health Keep Their Care
The National Alliance for Care at Home supported the narrower restrictions and urged CMS to move to targeted, data-driven enforcement. LeadingAge’s Katie Smith Sloan called the changes a step in the right direction but said extending the moratoria further delays legitimate providers’ ability to establish needed services.
The location change matters most in areas with few providers. Rural families and those in growing suburbs where demand has outpaced agencies may see established providers add locations closer to home.
Fraud is not only a taxpayer issue; it can harm patients directly. In fraudulent schemes, patients can be enrolled in hospice without being terminally ill, which can affect their access to curative treatment, or receive little of the care billed in their name.
Choosing an Agency During the Freeze
Families choosing a hospice or home health agency can take a few protective steps. Ask how long the agency has served Medicare patients, who will make visits and how often, and how to reach a nurse after hours. Medicare’s Care Compare tool lists quality ratings for certified agencies.
Patients should review Medicare statements for services they did not receive. Anyone asked to sign hospice paperwork without a clear terminal diagnosis from their own doctor, or offered gifts or cash to enroll, should decline and report it to Medicare.
Hospice requires a doctor’s certification that a patient is expected to live six months or less if the illness runs its usual course. Patients can leave hospice and return to regular Medicare coverage at any time.
The open question is whether CMS will lift, extend, or narrow the freeze again in May. MedicalDaily will report on any enforcement results the agency releases and on state Medicaid actions.
Key Questions Answered
What did CMS announce? A six-month extension of the nationwide freeze on new Medicare hospice and home health agencies, into May 2027.
What changed from the original freeze? Agencies already enrolled in Medicare can now add new practice locations under their existing enrollment.
Are current patients affected? No. CMS said the extension does not affect existing enrollments or stop current providers from delivering services.
Why did CMS extend it? The agency said the circumstances that led to the freeze have not yet abated and it needs more time to act against fraud.
How many new agencies are waiting? About 250 home health agencies and 50 hospices had applied without approval during the moratorium, a CMS official said.
How can families avoid hospice fraud? Check an agency’s history and ratings, review Medicare statements, and refuse gifts or pressure to enroll without a clear diagnosis.
Published by Medicaldaily.com
