Overview
On February 26, 2026, the Centers for Medicare & Medicaid Services (CMS) issued a Federal Register notice imposing a six-month nationwide temporary moratorium on the enrollment into the Medicare program of new medical supply providers and companies classified as Durable Medical Equipment, Prosthetics, Orthotics, and Supplies (DMEPOS) suppliers. CMS imposed the DMEPOS moratorium after analyzing enrollment trends and claims data showing persistent vulnerabilities and program integrity concerns in the DMEPOS supplier sector. The moratorium becomes effective upon publication of the notice in the Federal Register (scheduled for February 27, 2026).
This moratorium is an exercise of CMS statutory authority under the Affordable Care Act and associated Medicare regulations specifically designed to prevent and combat fraud, waste, and abuse in the Medicare program. Under this authority, CMS may halt new enrollments in provider/supplier categories or geographic areas where data indicate a significant potential for fraud, waste, or abuse. The moratorium may also apply to Medicare Advantage or Medicaid/CHIP providers in certain circumstances unless a state determines that the moratorium would harm access to care.
CMS and the HHS Office of Inspector General (OIG) cited historical patterns of improper billing, fraud schemes, and systemic oversights that have compromised Medicare funds and potentially harmed beneficiaries.
Moratorium Rationale
The CMS notice outlines a robust program integrity rationale, including:
- Historical fraud and abuse trends in DMEPOS billing and supplier activities, as documented in multiple OIG reports
- Data showing high numbers of improper billing schemes tied to certain equipment types, such as braces, catheters, and other off-the-shelf products
- Persistent systemic vulnerabilities that traditional enrollment screening and oversight have failed to fully address
Furthermore, HHS Secretary Kennedy and CMS Administrator Oz have publicly framed the moratorium as part of a broader shift away from what they described as a long-standing "pay-and-chase" model of enforcement toward a real-time fraud prevention strategy. Secretary Kennedy stated that CMS is leveraging advanced data analytics and AI tools to detect suspicious billing before taxpayer dollars are disbursed, emphasizing that proactive enrollment controls are a key component of that approach. Administrator Oz similarly characterized the moratorium as a preventive measure intended to "padlock the jar" rather than pursue recovery after improper payments have already occurred, underscoring the administration's commitment to stopping high-risk suppliers from entering the Medicare program in the first place.
Moratorium Scope
The moratorium applies nationwide to the Medicare enrollment of DMEPOS medical supply companies not yet enrolled at the time of the notice's publication. Existing enrolled suppliers remain unaffected and can continue billing Medicare. The moratorium does not restrict changes in practice location or administrative updates, or changes of ownership that do not require new enrollment under 42 C.F.R. §424.570.
Providers or suppliers whose applications were received before the moratorium goes into effect may proceed in most cases.
Duration and Extensions
CMS authority only allows it to impose temporary moratoria for six-month periods. However, those can be extended in six-month increments if CMS determines continued need. CMS must publish additional Federal Register notices to announce extensions or lifting of the moratorium.
Implications for Providers, Suppliers, and Industry Stakeholders
Organizations planning to enter the Medicare market as DMEPOS suppliers should anticipate application delays and uncertainty. Any prospective supplier must assess whether their business model or services fall within the moratorium's scope and adjust operational timelines accordingly.
The imposition of a moratorium signals heightened enforcement priorities in areas historically prone to improper billing and fraud. Existing suppliers should anticipate continued scrutiny of billing practices, documentation, and compliance structures.
While this moratorium specifically targets DMEPOS suppliers, the underlying statutory authority allows CMS to impose similar enrollment moratoria in other categories if data indicate unacceptable risks. Stakeholders should closely monitor Federal Register notices and CMS communications for future actions.
The nationwide CMS temporary moratorium on DMEPOS supplier enrollment reflects a broader federal push to strengthen Medicare program integrity and protect beneficiaries. The action imposes immediate constraints on new market entrants and reinforces the need for robust compliance frameworks within the DMEPOS supply sector. Providers, supply companies, and industry advisors should adjust planning assumptions and maintain vigilance for further notices from CMS during the moratorium period and beyond.
Related Development: CMS "CRUSH" Initiative
The DMEPOS moratorium was announced alongside the CMS Request for Information (RFI) under its Comprehensive Regulations to Uncover Suspicious Healthcare (CRUSH) initiative. Through CRUSH, CMS is seeking stakeholder input on additional regulatory and operational tools to strengthen fraud prevention across Medicare, Medicaid, CHIP, and the Health Insurance Marketplace. The RFI signals potential future rulemaking aimed at expanding enrollment controls, enhancing data transparency, leveraging advanced analytics, and improving coordination with states and law enforcement.
Together, the moratorium and the CRUSH initiative show a coordinated approach: combining immediate enforcement actions with longer-term regulatory changes to strengthen fraud prevention across federal healthcare programs.
Please let us know if you would like further analysis of how these changes affect specific service lines, billing practices, or compliance programs. Venable's Healthcare and Healthcare Policy teams are ready to provide support and counsel when you need it.