CMS has announced new actions aimed at strengthening fraud prevention within Medicare and Medicaid programs. The initiative focuses on improving oversight, protecting patients and taxpayers, and preventing improper payments before they occur.
At the White House, Vice President J. D. Vance, Secretary of Health and Human Services Robert F. Kennedy Jr., and Administrator of the Centers for Medicare & Medicaid Services (CMS) Mehmet Oz outlined several policy updates intended to improve program integrity and reduce fraud in federal health care programs.
Nationwide Moratorium on Certain Medical Supply Company Enrollments
One of the key measures is a nationwide six-month moratorium on new Medicare enrollments and certain ownership changes for specific categories of medical supply providers.
The policy, which took effect February 25, 2026, applies to seven categories of Durable Medical Equipment, Prosthetics, Orthotics, and Supplies (DMEPOS) providers, primarily businesses whose primary role is distributing medical equipment or supplies.
The moratorium does not affect existing suppliers or applications submitted before February 27, 2026.
Key Details of the Moratorium
- Effective Date: February 25, 2026
- Duration: Initial six-month period
- Scope: Applies nationwide, including all 50 states, U.S. territories, and Washington, D.C.
Entities affected
- Medical supply companies within seven DMEPOS categories, including those employing professionals such as orthotists, pedorthists, prosthetists, pharmacists, or respiratory therapists.
Exemptions
- Pharmacies
- Grocery stores
- Hospitals and physician practices
- Other inpatient or outpatient providers
Ownership transactions
- The moratorium also restricts certain 36-month rule transactions, meaning a business that recently changed ownership may not enroll a new owner in Medicare during that period.
Potential extensions
- CMS may extend the moratorium in additional six-month increments if necessary.
Impact on your practice
Due to the exemptions this is not going to directly affect your practice, but if you have a separately incorporated entity that provides DME this may impact you.
Request for Stakeholder Input
Federal officials are also inviting public and industry feedback on ways to further strengthen fraud prevention efforts. Stakeholders are encouraged to provide input on how CMS can continue to improve oversight, monitoring, and program integrity efforts.
Officials noted that these actions are part of a broader strategy to enhance fraud detection, improve safeguards, and ensure that federal health care funds are used appropriately to support patient care.
Statements from Health Officials
Secretary Kennedy noted that the initiative reflects a shift toward identifying and stopping improper payments earlier in the process, including the use of advanced analytics and technology tools.
CMS Administrator Dr. Oz emphasized that strengthening preventive oversight can help reduce fraud while ensuring that Medicare and Medicaid resources remain available for the patients who rely on them.
Read Comments