CMS Imposes Six-Month Moratorium on New Hospice and Home Health Providers to Combat Fraud

The Centers for Medicare and Medicaid Services (CMS) announced on Wednesday a six-month moratorium on the enrollment of new hospice and home health agency providers.

The decision aims to “crush” fraudulent businesses and follows a series of measures by the Trump administration to address “fraud, waste, and abuse” in federal healthcare spending.

Background and Context

This moratorium is the latest in a series of actions taken by CMS to curb fraudulent activities in the healthcare sector. In January, the agency threatened a two-year licensing freeze for new providers of home and community-based services in Minnesota.

Additionally, in February, CMS implemented a nationwide halt on the enrollment of new durable medical equipment suppliers.

Purpose and Impact

The moratorium is expected to remain in effect for six months and applies to new hospice and home health agency providers seeking to enroll in Medicare, Medicaid, and the Children’s Health Insurance Program (CHIP).

CMS stated that the pause is necessary to protect program integrity and ensure that only legitimate providers are enrolled in federal healthcare programs.

Previous Actions

• January 2020: CMS threatened a two-year licensing freeze for new home and community-based services providers in Minnesota.
• February 2020: CMS imposed a nationwide moratorium on new durable medical equipment suppliers.

Statement from CMS

“This moratorium is a critical step in our ongoing efforts to combat fraud, waste, and abuse in federal healthcare spending. We are committed to protecting the integrity of our programs and ensuring that beneficiaries receive high-quality care from legitimate providers.”