The Centers for Medicare & Medicaid Services (“CMS”) announced a six-month nationwide moratorium on new Medicare enrollment for certain suppliers of durable medical equipment, prosthetics, orthotics, and supplies (“DMEPOS”). The moratorium became effective February 27, 2026. In the moratorium notice, CMS highlighted DMEPOS fraud, waste, and abuse problems as the impetus for such action. During the moratorium period, CMS will explore additional safeguards to further mitigate these concerns. See below for additional high-level details. Note, a detailed case-by-case analysis may be necessary to assess the moratorium impact on a particular DMEPOS supplier.
Beginning on February 27, 2026, no new DMEPOS suppliers of the following types will be enrolled into Medicare for a six-month period:
- 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; and
- Medical Supply Company with Respiratory Therapist
Per a CMS FAQ, a medical supply company is considered a business whose principal function is to furnish DMEPOS supplies (regardless of supply type) directly to another party, such as, but not limited to: (1) beneficiaries with a medical order (for example, via mail order); (2) medical providers and suppliers; or (3) both. As an illustration, a grocery store’s, pharmacy’s, or inpatient or outpatient medical provider’s principal function is typically not the provision of DMEPOS. It is instead, for instance, the selling of food or toiletries, the dispensing of medicines, the direct provision of medical care (such as a hospital, HHA, physician’s office), etc. Therefore, the moratorium would generally not apply to these DMEPOS suppliers.
Currently enrolled medical supply companies will be largely unaffected unless they are opening a new location during the moratorium period. Existing medical supply companies can generally continue to participate in Medicare, submit claims for covered services, and make certain changes to their Medicare enrollment information.
Moratoria are implemented for six months. They can be extended for additional six-month periods, if necessary. Notice of an extension or end to the moratorium will be announced through a Federal Register notice.
DMEPOS suppliers must adhere to a significant number of regulatory requirements and are strictly monitored. Advis can help navigate this complex environment. If you have any questions on the recently announced Medicare enrollment moratorium on new medical supply companies or other DMEPOS matters, please contact Advis.
Published March 2, 2026
