- The Centers for Medicare & Medicaid Services has announced a six-month enrollment pause for home health agencies and hospices.
- Home care providers who are already enrolled in Medicare, Medicaid, and CHIP may be affected by this enrollment freeze.
- Insurance requirements for home care businesses are not affected by this change.
On May 13, 2026, the Centers for Medicare & Medicaid Services (CMS) announced a six-month pause in new enrollments for home health agencies (HHAs) and hospices. This temporary enrollment freeze is tied to the wider anti-fraud crackdown within the federal government.
This guide covers how this announcement may impact the home health care industry and new HHAs.
Who is affected by the enrollment moratorium?
The moratorium on Medicare, Medicaid, and CHIP enrollment applies to new home health agencies and hospices, as well as certain changes in majority ownership of home care businesses. This is a nation-wide pause on enrollment impacting all 50 states, the District of Columbia, and U.S. territories.
How does this moratorium affect existing home care providers?
HHAs, hospices, and other home care providers who are currently enrolled in these program can generally:
- Continue to participate in Medicare, Medicaid, and CHIP programs
- Submit claims for covered services
- Make certain changes to their enrollment information
However, some existing home care businesses may be affected in other ways:
Selling a home care business
Under current rules, businesses changing majority ownership within 36 months of initial enrollment must file a new application. The moratorium temporarily blocks these applications, which could impact the sale of existing HHAs, hospices, and other home care businesses.
Heightened oversight
Alongside the enrollment pause, the CMS also announced additional fraud-detection measures, including:
- Nationwide hospice site visits
- New hospice scoring system
- Heightened oversight of newly enrolled hospices in states deemed to have an elevated fraud risk, including Arizona, California, Georgia, Nevada, Ohio, and Texas
- Enhanced HHA enrollment screening, with site verification and fingerprint-based background checks
- Expanding pre- and post- claim review for HHAs in Florida, Illinois, North Carolina, Ohio, Oklahoma, and Texas
How does this moratorium affect new home care providers?
Though temporary, this halting of Medicare, Medicaid, and CHIP enrollments will greatly impact new home health agencies, hospices, suppliers, and other care providers.
Attracting clients
HHAs and hospice clients typically fall into three categories: people aged 65 or older, those living with a disability, and patients with End-Stage Renal Disease. These groups are also more likely to rely on Medicare, Medicaid, and/or CHIP to pay for home care assistance.
New HHAs and hospice care providers may find it difficult to build their businesses without the ability to accept government subsidized payments. Though patients can submit claims through private health insurance or pay out of pocket, many may prefer to seek care with established services who are able to submit claims to these programs.
Applying for enrollment after the moratorium ends
HHAs and hospices that apply to enroll within six months of the moratorium end date will face higher scrutiny and screening, including:
- Site visits
- Fingerprint-based criminal background checks of 5% or greater owners
Can I start a home health agency in 2026?
Yes, you can still start a home health agency in 2026. However, you will be unable to enroll in Medicare, Medicaid, or CHIP until the home health agency Medicare enrollment pause has ended.
Once enrollment has resumed, there may be new rules or restrictions on who can join the program. HHAs and hospices that apply up to six months after the moratorium ends will automatically be assigned a high screening level.
New home health agencies and hospice care providers who are established in the next six months can accept other forms of payment, such as through health insurance claims or directly from patients and/or their families.
What if I have pending application?
Medicare, Medicaid, and CHIP enrollment applications received before May 13 will continue to be processed as normal. Applications received on or after May 13 will be denied.
Does the moratorium affect business insurance requirements?
No, the CMS home health agency moratorium does not affect insurance requirements for home health agencies. Non-medical home care, independent caregivers, nurses, and associated care businesses may still need insurance to operate in the United States.
Home care agency insurance requirements are typically set by state or territory governments. Certain types of coverage may be mandatory, regardless of whether you are enrolled in Medicare or not. You may also be required to have minimum coverage levels under a service contract or lease agreement.
What types of home care agency insurance do I need?
Common types of insurance that HHAs may need include:
- General Liability – Protects businesses against the risk of customer injury and property damage. It may be required to receive a home health agency license and/or to lease commercial space for your agency.
- Professional Liability – Also known as E&O insurance, it protects businesses against claims of negligence, misrepresentation or mistake, as well as document or paperwork errors. This type of coverage may be required to become licensed.
- Workers’ Compensation – Provides protection for employers if an employee suffers a work-related illness or injury. It is mandatory in most states (often before you hire your first employee) and can cover full-time, part-time, and short-term employees.
Always check the home health agency insurance requirements in your state to ensure your agency remains compliant.
BizInsure can help HHAs and home care businesses compare coverage in minutes, including non-medical home care insurance packages that combine General Liability, Professional Liability, and Cyber Liability insurance.
Is the moratorium nationwide, or are some states exempted?
Yes, the enrollment moratorium is nationwide. All US states, territories, and the District of Columbia are affected by this announcement. There are currently no exemptions for specific states or regions.
How long will the moratorium last?
This Medicare enrollment moratorium has been implemented for the next six months, starting from May 13, 2026. However, it could be extended for additional six-month periods as necessary or lifted earlier.
As with any insurance, coverage will be subject to the terms, conditions and exclusions contained in the policy wording. This information is general only and should not be relied upon as advice. The number of quotes provided varies between products, occupations and other underwriting factors determined by the insurers. Always check with your local licensing board when getting or renewing your home health agency license to ensure you are meeting their current licensing requirements.
