CMS Medicare Enrollment Freeze: What Home Care and Home Health Agency Owners Need to Know

The home care and home health industry has been buzzing ever since CMS announced a nationwide enrollment moratorium for new Home Health Agencies and Hospices.

For many aspiring agency owners, the news immediately sparked concern. Questions began flooding social media groups, industry forums, and consulting companies across the country:

Can I still start a home health agency?

Will Medicaid applications be affected too?

Is this the beginning of a larger crackdown on new providers?

While the headlines have certainly captured attention, it is important to understand what was actually announced, how similar moratoriums have worked in the past, and what agency owners should be doing right now to position themselves for success.

What Did CMS Announce?

On May 13, 2026, the Centers for Medicare & Medicaid Services (CMS) implemented a six-month nationwide moratorium on new Medicare enrollments for Home Health Agencies and Hospices.

According to CMS, the moratorium was established as part of the agency's ongoing efforts to combat fraud, waste, and abuse within federal healthcare programs.

During the moratorium period, CMS will deny new Medicare enrollment applications for affected provider types, as well as certain ownership changes that require a new Medicare enrollment.

The announcement specifically targets Medicare enrollment.

However, the conversation becomes more complex when Medicaid enters the picture.

Could Medicaid Enrollment Be Impacted?

The answer is: possibly.

Federal Medicaid regulations allow CMS enrollment moratoriums to influence Medicaid provider enrollment at the state level.

Under federal regulations, state Medicaid agencies are generally expected to impose corresponding enrollment moratoriums when CMS identifies a provider category as high-risk. However, states may choose not to implement a moratorium if doing so would negatively affect beneficiary access to care.

In other words, Medicaid enrollment decisions may now vary by state.

This is not a situation where one nationwide answer applies to everyone.

In fact, Ohio has already announced a Medicaid enrollment moratorium for certain provider types that aligns with the federal action. Other states have not yet publicly announced similar restrictions.

For agency owners pursuing Medicaid credentialing, the most important step is to monitor communications from your state Medicaid agency and verify information directly with provider enrollment departments.

The key takeaway is this:

Do not assume Medicaid enrollment is automatically frozen in your state simply because CMS imposed a Medicare moratorium.

We've Seen Moratoriums Before

Although this announcement feels significant, it is important to remember that enrollment moratoriums are not new.

CMS has used temporary enrollment moratoriums multiple times over the past decade in response to suspected fraud risks in specific provider sectors and geographic regions.

Historically, these moratoriums have been used as temporary program integrity tools rather than permanent barriers to entry.

The healthcare industry has successfully navigated regulatory shifts, reimbursement changes, value-based purchasing initiatives, PDGM implementation, and countless compliance updates over the years.

This situation is another example of an industry adapting to regulatory oversight while continuing to meet the growing needs of patients and families.

Don't Allow Fear to Drive Your Business Decisions

Whenever major industry announcements occur, it is natural for uncertainty to follow.

Unfortunately, uncertainty often creates something even more dangerous: fear.

Over the past several weeks, I have spoken with agency owners who are worried that opportunities are disappearing or that the industry is becoming too difficult to enter.

The reality is far different.

America's population continues to age.

Families continue to seek care at home.

Hospitals continue to discharge patients who need home-based support.

The demand for quality care services has not disappeared.

In fact, many industry experts believe the demand for home-based care will continue to grow for years to come.

While regulations may change, the need for compassionate, compliant, and professionally operated agencies remains constant.

Successful agency owners understand that market conditions will always change.

Their focus remains on preparation, execution, and adaptability.

Rather than focusing on what you cannot control, focus on what you can control:

• Compliance readiness

• Documentation systems

• Credentialing preparation

• Referral development

• Caregiver recruitment

• Financial management

• Operational efficiency

These are the fundamentals that create long-term success regardless of regulatory changes.

A Friendly Fiscal Year Reminder

As we approach June 30, many states will conclude their current fiscal year and begin a new budget cycle on July 1.

This makes June an excellent time for agency owners to conduct a thorough operational review.

Ask yourself:

• Are all credentialing applications complete and up to date?

• Have provider enrollment files been properly maintained?

• Are policy and procedure manuals current?

• Is staff training documentation audit-ready?

• Are compliance records organized and accessible?

• Are contracts and vendor agreements current?

• Is your agency financially prepared for the next fiscal year?

Too often, agency owners wait until problems arise before addressing operational gaps.

The agencies that thrive in the coming year will be the ones that use this season to prepare rather than react.

Whether you are currently credentialing, preparing for Medicaid enrollment, pursuing Medicare certification in the future, or simply strengthening your agency's foundation, now is the time to get organized.

Final Thoughts

The recent CMS enrollment moratorium deserves attention, but it does not deserve panic.

Stay informed.

Monitor official announcements.

Verify information directly with your state agencies.

Most importantly, continue building a strong, compliant, and sustainable organization.

Regulations will change. Policies will evolve. Industry challenges will come and go.

But one thing remains true:

Families will continue to need quality care at home.

The agencies that remain focused, prepared, and adaptable will be well-positioned to serve that need—regardless of the regulatory environment.