On February 27, 2026, the Centers for Medicare and Medicaid Services (CMS) implemented a nationwide six-month temporary moratorium on new Medicare enrollment applications and changes in majority ownership for certain durable medical equipment, prosthetics, orthotics, and supplies (DMEPOS) companies.
The moratorium was formally published in the Federal Register and is effective immediately. CMS issued the notice according to its authority under 42 C.F.R. § 424.570 and section 1866(j)(7) of the Social Security Act, citing program integrity concerns and a significant potential for fraud, waste, and abuse.
This action was announced in conjunction with a broader CMS and US Department of Health and Human Services (HHS) initiative to strengthen Medicare and Medicaid fraud enforcement and increase transparency surrounding provider revocations.i
The Moratorium Is Limited in Scope
The temporary enrollment freeze is limited to seven specific DMEPOS “medical supply company” supplier types and applies nationwide.
Definition of “Medical Supply Company” for Moratorium Purposes
For purposes of the moratorium only, CMS defines a medical supply company as a business whose primary function is to furnish DMEPOS supplies directly to beneficiaries with a medical order or to other providers and suppliers.
Certain affected supplier types require specific licensed or credentialed personnel (e.g., orthotics personnel, prosthetics personnel, respiratory therapists, or registered pharmacists). To meet this requirement, the company must have at least one individual serving in an employment, advisory, contractual, or other role.
Supplier Types Affected by the Moratorium
The moratorium applies exclusively to the following DMEPOS supplier categories:
- Medical supply companies
- Medical supply companies with orthotics personnel
- Medical supply companies with pedorthic personnel
- Medical supply company with prosthetics personnel
- Medical supply company with prosthetic and orthotic personnel
- Medical supply companies with a registered pharmacist
- Medical supply companies with a respiratory therapist
The moratorium applies to:
- Initial Medicare enrollment applications
- Applications reporting changes in majority ownership that require re-enrollment
Applications submitted prior to February 27, 2026, are not subject to the moratorium.
CMS’s Stated Basis for the Moratorium
CMS stated that the nationwide moratorium was imposed after consultation with the US Department of Health and Human Services Office of Inspector General (HHS-OIG) and analysis of Medicare Fee-for-Service enrollment and enforcement data.
Among the factors CMS considered:
- Enrollment trends across more than 80 DMEPOS supplier types
- Revocations of Medicare billing privileges
- Payment suspensions based on credible allegations of fraud
- Law enforcement referrals and investigations
- Benefit integrity unit complaints since 2023
CMS determined that these seven supplier categories present a heightened risk of fraud, waste, and abuse and that a temporary moratorium is necessary to protect the Medicare Trust Fund while the agency evaluates additional safeguards.
CMS further stated that it believes the current DMEPOS supplier network is sufficient to maintain beneficiary access to care during the moratorium period.
The moratorium must remain in effect for at least six months but may be extended in six-month increments. CMS must determine whether to lift or extend the moratorium prior to the end of each six-month period.
Part of a Broader Medicare and Medicaid Fraud Enforcement Initiative
The DMEPOS enrollment freeze was announced as part of a broader federal enforcement strategy emphasizing affordability, program integrity, and proactive fraud detection. CMS characterized the action as part of a shift away from “pay-and-chase” enforcement toward preventative screening and data-driven oversight.
In addition to the moratorium, CMS announced:
- Increased use of advanced analytics to detect suspicious billing patterns
- Heightened collaboration with law enforcement
- Expanded transparency regarding provider revocations
CMS to Publicly Disclose Medicare Revocations
CMS also announced plans to publish information identifying providers and suppliers whose Medicare billing privileges have been revoked. The agency intends to disclose:
- The provider’s National Provider Identifier (NPI)
- The stated basis for revocation
Although CMS has not yet clarified the timing or frequency of publication, this initiative significantly increases reputational and contractual exposure for suppliers subject to adverse Medicare actions.
DMEPOS suppliers should review contractual reporting obligations requiring disclosure of revocations or other disciplinary actions to Medicaid agencies and commercial payers.
Impact on State Medicaid Enrollment Requirements
In some states, Medicare enrollment is a prerequisite to Medicaid enrollment for certain DMEPOS suppliers. For example, New York State Medicaid requires certain suppliers to obtain site-specific Medicare approval before submitting a Medicaid enrollment application.
While pharmacies are not included by default within the definition of “medical supply companies” for purposes of this moratorium, other DMEPOS suppliers that fall within the seven affected categories may experience downstream delays in Medicaid enrollment where Medicare approval is required.
We anticipate that certain state Medicaid agencies may issue additional guidance addressing the moratorium’s impact.
Key Takeaways for DMEPOS Suppliers
- CMS has imposed a nationwide six-month moratorium on new Medicare enrollment and majority ownership changes for seven categories DMEPOS medical supply companies.
- The moratorium does not affect applications submitted before February 27, 2026.
- CMS may extend the moratorium in six-month increments.
- CMS believes the current supplier network is sufficient to meet beneficiary needs without reductions in access to care or quality of care. This may lead to stricter scrutiny of enrollment applications once the moratorium is removed.
- CMS will publish revocation data, increasing transparency and potential reputational risk.
- State Medicaid enrollment processes may be indirectly affected where Medicare enrollment is a prerequisite.
What Affected DMEPOS Suppliers Should Do Now
- Engage Experienced Health Care Regulatory Counsel: Suppliers should confirm whether they fall within one of the seven affected categories and assess the impact of the moratorium on planned enrollments, expansions, or ownership transactions.
- Evaluate Pending or Anticipated Ownership Changes: Transactions involving majority ownership should be carefully reviewed to determine whether they would trigger re-enrollment requirements subject to the moratorium.
- Monitor CMS and State Agency Guidance: CMS may issue additional sub-regulatory guidance, and state Medicaid programs may clarify how Medicare enrollment prerequisites will be handled during the moratorium.
- Review Compliance and Reporting Protocols: Given CMS’s new transparency initiative, suppliers should ensure internal protocols address revocation reporting obligations and risk mitigation strategies.
How Barclay Damon Helps DMEPOS Suppliers Nationwide
Barclay Damon’s Health Care Controversies Team counsels DMEPOS suppliers across the United States on legal and contractual compliance requirements, including Medicare and Medicaid enrollment; revalidation; revocation and payment disputes; and program integrity audits and investigations. We assist suppliers navigating complex federal and state regulatory requirements to maintain uninterrupted participation in Medicare and Medicaid programs.
If you have any questions regarding the CMS DMEPOS moratorium, Medicare disclosure obligations, or related compliance risks, please contact Brad Gallagher, co-leader of the firm's Health Care Controversies and Pharmacy Teams, at bgallagher@barclaydamon.com; Amanda Rhodes, associate, at arhodes@barclaydamon.com; or another member of the firm’s Health Care Controversies Team.
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