CMS Imposes Six-Month Nationwide Moratorium on New DMEPOS Supplier Enrollments
The Centers for Medicare & Medicaid Services (CMS) has announced a six-month nationwide temporary moratorium on the enrollment of new Durable Medical Equipment, Prosthetics, Orthotics, and Supplies (DMEPOS) suppliers into the Medicare program. The action was published in the Federal Register on February 27, 2026, and takes effect immediately.
According to CMS, the moratorium follows a detailed review of enrollment patterns and claims data, revealing ongoing program integrity vulnerabilities within the DMEPOS sector. The agency cited persistent risks of fraud, waste, and abuse tied to certain equipment categories and supplier activities.
Legal Authority and Scope
CMS exercised its statutory authority under the Affordable Care Act and corresponding Medicare regulations, which permit temporary enrollment moratoria in provider or supplier categories where there is a significant risk of fraud, waste, or abuse. The moratorium applies nationwide and affects only new DMEPOS suppliers seeking Medicare enrollment after the publication date.
Existing Medicare-enrolled DMEPOS suppliers are not impacted and may continue billing as usual. The moratorium does not restrict administrative updates, practice location changes, or ownership changes that do not require new enrollment under 42 C.F.R. § 424.570. Applications received prior to the effective date are generally permitted to proceed.
CMS noted that similar moratoria could extend to Medicare Advantage or Medicaid/CHIP providers in certain cases unless a state determines that access to care would be compromised.
Rationale: Ongoing Fraud and Improper Billing Concerns
CMS and the HHS Office of Inspector General (OIG) referenced multiple historical investigations identifying improper billing schemes and systemic weaknesses in DMEPOS oversight. Particular concern was raised over high-risk equipment categories, including braces, catheters, and other off-the-shelf products frequently associated with fraudulent billing patterns.
Federal officials characterized the action as part of a broader shift from what they described as a “pay-and-chase” enforcement model toward proactive fraud prevention. HHS Secretary Kennedy stated that CMS is leveraging advanced data analytics and artificial intelligence tools to detect suspicious billing before payments are issued. CMS Administrator Oz described the moratorium as a preventive measure aimed at blocking high-risk suppliers from entering the Medicare program at the outset.
Duration and Potential Extensions
Under federal law, CMS may impose moratoria in six-month increments. The current moratorium will remain in effect for six months but may be extended if CMS determines that program integrity concerns persist. Any extension or termination will require publication of a subsequent Federal Register notice.
Industry Implications
Organizations planning to enter the Medicare DMEPOS market should anticipate enrollment delays and reassess operational timelines. Industry stakeholders are advised to carefully evaluate whether their services fall within the moratorium’s scope.
Existing DMEPOS suppliers should expect continued oversight and heightened scrutiny of billing practices, documentation standards, and compliance programs. The action signals broader enforcement priorities that could affect other provider categories if similar risks are identified.
Related Development: CMS “CRUSH” Initiative
The moratorium was announced alongside a CMS Request for Information (RFI) under the agency’s Comprehensive Regulations to Uncover Suspicious Healthcare (CRUSH) initiative. Through CRUSH, CMS is soliciting stakeholder input on additional regulatory and operational measures to enhance fraud prevention across Medicare, Medicaid, CHIP, and the Health Insurance Marketplace.
The RFI indicates potential future rulemaking focused on expanded enrollment controls, improved data transparency, advanced analytics deployment, and stronger coordination with state agencies and law enforcement.
Together, the DMEPOS moratorium and the CRUSH initiative reflect a coordinated federal effort to strengthen healthcare program integrity through both immediate enforcement actions and longer-term regulatory reforms.
CMS has advised stakeholders to monitor upcoming Federal Register notices and agency communications for further developments during the moratorium period.
