Creator: Patrick Connole
White House Targets DMEPOS Suppliers in Fraud Crackdown

On Feb. 25, the Trump Administration and VP J.D. Vance announced steps to eliminate alleged fraudulent payments in Medicare and Medicaid. The move doesn’t directly affect skilled nursing but may impact DMEPOS stakeholders, sources said.
The Trump Administration’s healthcare leadership and Vice President J.D. Vance announced new steps on Feb. 25 to eliminate payments in the Medicare and Medicaid programs that they said were fraudulent. The actions do not directly impact the skilled nursing sector but could be of note to stakeholders invested in the Durable Medical Equipment, Prosthetics, Orthotics, and Supplies (DMEPOS) business, sources said.
Among the areas targeted is a nationwide moratorium on Medicare enrollment for certain DMEPOS suppliers in which the Centers for Medicare and Medicaid Services (CMS) said it “is taking decisive steps to prevent fraudulent Medicare billing by DMEPOS companies. A six-month moratorium on new Medicare enrollment for certain DMEPOS suppliers builds on CMS’ stopping more than $1.5 billion in suspected fraudulent billing in this area last year.”
The agency said the DMEPOS supplier enrollment moratorium will allow CMS to explore additional safeguards to further mitigate longstanding instances of fraud, waste, and abuse perpetrated by certain DMEPOS companies. It applies to all applications for initial enrollment and changes in majority ownership for medical supply companies.
CMS said it also plans to publish information on providers/suppliers whose participation in the Medicare program has been revoked, including their National Provider Identifier and the reason for the revocation.
“This additional transparency will allow patients and payers, including private insurers, to understand which providers have been subject to such administrative enforcement action by the government,” CMS said.
More information on the DMEPOS moratorium can be found via the Federal Register at: https://www.federalregister.gov/public-inspection/2026-03971/medicare-medicaid-and-childrens-health-insurance-programs-nationwide-temporary-moratoria-on.
Comments or questions? Contact Patrick Connole at pconnole@parkplacelive.com.

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