On February 25, 2026, the Centers for Medicare & Medicaid Services (“CMS”) announced a nationwide six-month moratorium on the enrollment of new Durable Medical Equipment, Prosthetics, Orthotics, and Supplies (“DMEPOS”) suppliers. This moratorium became effective on February 27, 2026.
Key Details of the Moratorium
- Duration: The moratorium will last for six months, with the possibility of extensions if necessary.
- Scope: The moratorium applies to new enrollments and new practice locations for the following seven categories of DMEPOS:
- Medical supply company
- Medical supply company with orthotics personnel
- Medical supply company with pedorthic personnel
- Medical supply company with prosthetics personnel
- Medical supply company with prosthetic and orthotic personnel
- Medical supply company with registered pharmacist
- Medical supply company with respiratory therapist
- Reason for the Temporary Freeze: The government has cited ongoing, long-standing, program vulnerabilities and fraud concerns within the DMEPOS supplier program as justification for this action.
- Increased Oversight and Consequences for Misrepresentation. To ensure that a supplier is not a medical supply company, CMS warned that it will apply enhanced screening, such as, but not be limited to, site visits and online research of the business for all DMEPOS supplier applications submitted during the moratorium. The agency further emphasized that misrepresenting supplier type may result in 10‑year enrollment bars, revocation of enrollment and a reenrollment bar of up to 10 years, and OIG for referral investigation and possible criminal, civil, or administrative penalties.
DMEPOS Suppliers not affected
Under 42 C.F.R. § 424.570(a)(1)(iii), a temporary moratorium does not apply to any of the following:
- Changes in practice location (unless moving into the moratorium area)
- Changes in supplier information
- Ownership changes (except changes in ownership of home health agencies that would require an initial enrollment)
CMS underscored, however, that under 42 C.F.R. § 424.551, a DMEPOS supplier that undergoes a non-exempt change in majority ownership (“CIMO”) within 36 months of its initial enrollment (or within 36 months of its most recent CIMO), must enroll in Medicare as a brand new supplier, undergo a survey, and become newly accredited. The supplier’s current enrollment is terminated. CMS stated that “[t]his means that the supplier’s new enrollment is an initial enrollment no less than if the supplier had never enrolled in Medicare before.” CMS further stated, “[h]ence, our moratorium would prohibit the supplier in this § 424.551 situation from reenrolling in Medicare because, again, it would constitute an initial enrollment; the supplier is “new.”” The moratorium exemption under § 424.570, mentioned above, for changes of ownership does not apply to such a scenario. - Enrollment applications received before February 27, 2026
- Providers whose principal function is something other than DMEPOS supplies.
For the purposes of the moratorium applicability, CMS defines a medical supply company as a business whose “principal function” is furnishing DMEPOS supplies (regardless of supply types) directly to beneficiaries or providers. According to CMS, entities like pharmacies, physicians, hospitals, and physical therapists, among others, whose primary function is not DMEPOS supply, are generally not included in the moratorium, and they continue to be able to open new practice locations throughout the country.
Key Takeaways for Clients
- No new Medicare enrollment for medical supply company DMEPOS suppliers nationwide for at least six months.
- Existing suppliers remain enrolled but cannot open new locations of the affected types.
- The action reflects heightened federal scrutiny of DMEPOS billing and ownership structures.
- Companies considering acquisitions or ownership changes must evaluate whether the transaction triggers a new enrollment—which would be barred during the moratorium.
- Expect increased audits, site visits, and enforcement activity for DMEPOS suppliers.