CMS Announces Nationwide DMEPOS Enrollment Moratorium as Part of Fraud Crackdown

On February 25, CMS announced a “nationwide moratorium on Medicare enrollment for certain Durable Medical Equipment, Prosthetics, Orthotics, and Supplies (DMEPOS) suppliers,” temporarily halting new supplier enrollments and certain ownership changes in categories identified as particularly susceptible to fraud. CMS has historically identified DMEPOS as a high-risk area for improper billing, citing more than $1.5 billion in suspected fraudulent billing in this sector in the prior year. The moratorium reflects a deliberate shift away from “pay-and-chase” enforcement toward preemptive controls, allowing CMS to pause market entry to support ongoing investigations and risk mitigation efforts.