In May 2026, CMS announced a six-month nationwide moratorium on new Medicare enrollments for Home Health Agencies (HHAs) and hospices.

The decision has created confusion throughout the industry, with many prospective agency owners asking the same question:

“Can I still open a home health agency?”

The answer is yes—but there is an important catch.

What Is the Medicare Enrollment Moratorium?

The moratorium temporarily prevents new Home Health Agencies and Hospice providers from enrolling in Medicare.

According to CMS, the action was taken as part of ongoing efforts to combat fraud, waste, and abuse within the healthcare system.

While existing Medicare-certified agencies are not affected, organizations seeking to become newly enrolled Medicare providers may face significant delays during the moratorium period.

Can You Still Open a Home Health Agency?

Technically, yes.

Many states still allow entrepreneurs to:

• Form a business entity
• Obtain state licensure
• Hire staff
• Establish operational processes
• Prepare for future Medicare participation

However, without Medicare enrollment, agencies may be unable to bill Medicare beneficiaries for covered services until enrollment restrictions are lifted.

For many startups, this creates uncertainty around revenue projections and growth plans.

Why Did CMS Take This Action?

Federal regulators have increased oversight of home health and hospice providers in recent years due to concerns surrounding fraudulent billing practices and improper enrollment activity.

The moratorium is intended to strengthen program integrity while allowing regulators to further evaluate enrollment activity across the country.

Although legitimate providers may be impacted, CMS believes these measures are necessary to protect Medicare resources and patient care.

What Should Prospective Agency Owners Do?

For organizations planning to enter the home health market, now may be the ideal time to focus on building a strong operational foundation.

Areas to prioritize include:

• Licensing preparation
• Compliance programs
• Caregiver recruitment
• Referral development
• Workflow design
• Technology implementation

By preparing now, agencies can position themselves for a smoother launch once enrollment restrictions are lifted.

Preparing for the Future

While the moratorium has temporarily slowed Medicare enrollment opportunities, it has not eliminated the growing demand for home-based care.

America’s aging population continues to drive significant need for skilled home health services.

Agencies that use this period to strengthen operations, implement efficient systems, and prepare for future growth may ultimately be better positioned when new enrollments resume.

At INMYTEAM, we’re helping agencies build scalable operations through scheduling, EVV, billing, payroll, compliance management, and AI-powered workflow automation—allowing owners to focus on growth while staying prepared for an evolving regulatory landscape.

The moratorium may be temporary, but operational excellence will remain a long-term competitive advantage.