CMS Announces Nationwide Moratorium on DMEPOS Supplier Enrollment

On February 27, 2026, the Centers for Medicare & Medicaid Services (CMS) announced a temporary nationwide moratorium on enrolling certain companies providing durable medical equipment, prosthetics, orthotics, and supplies (DMEPOS) into Medicare. This initiative aims to leverage CMS's program integrity powers to tackle fraud, waste, and abuse in the sector through heightened scrutiny.

The moratorium will initially last for six months, with potential extensions announced through the Federal Register and CMS website updates. This measure impacts the approval of new Medicare enrollments for specific DMEPOS supplier types. Applications submitted by these suppliers on or after the implementation date will not be accepted.

CMS defines, for moratorium purposes, a medical supply company as one primarily providing DMEPOS supplies directly to beneficiaries with a medical order, medical providers, suppliers, or both. The moratorium generally excludes businesses like grocery stores or inpatient medical providers, where providing DMEPOS is not the primary function.

Suppliers already enrolled and affected by the moratorium will continue participating in Medicare and can bill for covered items and services. Their existing billing privileges remain intact, while compliance, revalidation, and accreditation obligations persist. A noteworthy element of the moratorium is its connection to the CMS 36-month change in majority ownership (CIMO) rule, which requires re-enrollment and accreditation under certain conditions.

CMS will process applications received before the moratorium but will deny those submitted on or after the effective date, necessitating refiling once the moratorium ends. Suppliers should avoid submitting new applications for affected types as these will face automatic rejection. Exceptions are not considered on a case-by-case basis, though appeals regarding applicability, not legitimacy, may be entertained.

Federal regulations require state Medicaid programs to align with Medicare moratoria unless it negatively affects beneficiary access. CMS recommends that states consider similar DMEPOS moratoriums, while implementation specifics are left to each state concerning Medicaid or CHIP participation. DMEPOS suppliers should remain informed of any state-specific enrollment pauses and consult relevant state Medicaid and CHIP guidance during the moratorium period.