Medicare Pauses New Supplier Sign-Ups to Fight Fraud and Waste
Published Date: 2/27/2026
Notice
Summary
Starting February 27, 2026, Medicare, Medicaid, and CHIP are hitting pause for six months on new sign-ups for companies that supply medical gear like wheelchairs, prosthetics, and other durable equipment. This temporary freeze helps stop fraud and waste, making sure your healthcare dollars go to the right places. If you’re a supplier or rely on these programs, expect tighter rules and a short wait before new suppliers can join.
Analyzed Economic Effects
6 provisions identified: 1 benefits, 3 costs, 2 mixed.
6‑Month Nationwide DMEPOS Moratorium
Starting February 27, 2026, CMS imposed a nationwide 6‑month moratorium on enrolling new Medicare DMEPOS medical supply company suppliers. The pause applies across the United States to new enrollments for the listed medical supply company types and may be extended in 6‑month increments.
Seven Supplier Types Specifically Blocked
The moratorium specifically blocks initial Medicare enrollments for seven types of DMEPOS medical supply companies nationwide: (1) medical supply company; (2) medical supply company with orthotics personnel; (3) medical supply company with pedorthic personnel; (4) medical supply company with prosthetics personnel; (5) medical supply company with prosthetic and orthotic personnel; (6) medical supply company with registered pharmacist; and (7) medical supply company with respiratory therapist.
Tighter Screening and 10‑Year Bar Risk
During the moratorium CMS will closely screen DMEPOS supplier applications (including site visits and online research) to ensure applicants are not medical supply companies. CMS warns that submitting false or misleading enrollment information can lead to denial, revocation, and up to a 10‑year reapplication bar under Sec. 424.530(a)(4).
Applications Received Before Moratorium Exempt
If your Medicare enrollment application for a DMEPOS supplier was received by the Medicare contractor before February 27, 2026, it is not subject to the moratorium and will be processed. CMS also can lift the moratorium earlier for specified reasons (for example, a presidential disaster declaration or public health emergency) or extend it in 6‑month increments.
States Decide on Medicaid and CHIP Moratoria
CMS did not impose a nationwide Medicaid or CHIP moratorium; instead, each State may decide whether to implement a DME moratorium for its Medicaid or CHIP programs. CMS is offering every state and territory the opportunity to consult with CMS on implementing a Medicaid- or CHIP-based DME moratorium.
CMS Says Beneficiary Access Should Be Maintained
CMS states it does not foresee shortages or access‑to‑care issues for Medicare beneficiaries because there are more than 79,000 DMEPOS suppliers nationwide and over 6,000 medical supply company enrollments already exist; CMS notes about 600 medical supply companies enroll each year (about 300 over a 6‑month period). CMS also noted other supplier types (pharmacies, hospitals, etc.) can open new locations and many supplies can be mail‑ordered.
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