Overview
- Effective with the Feb. 27 Federal Register notice, the nationwide moratorium lasts six months and can be extended in additional six‑month increments.
- It covers initial enrollments for seven “medical supply company” categories and applies to majority ownership changes only when a new application is required under CMS’s 36‑month rule.
- Providers whose principal business is not supplying DMEPOS are excluded, and the pause does not directly apply to Medicaid or CHIP, though states and payors that rely on Medicare enrollment could be indirectly affected.
- CMS points to high revocation and suspension rates and concentrated high‑risk orthotics billing, saying it blocked over $1.5 billion in suspected DMEPOS fraud last year and suspended $5.7 billion in Medicare payments in 2025.
- Related actions include deferring $259.5 million in Minnesota Medicaid funds, launching a fraud tipline, planning to publish revoked‑provider lists, and seeking input through the CRUSH initiative, while suppliers flag enrollment, M&A and bidding timeline risks.