Los Angeles, California — HealthBridge, a national healthcare regulatory consulting and management firm specializing in Medicare compliance and CMS provider enrollment strategy, is providing advisory and regulatory support to healthcare operators following the Centers for Medicare & Medicaid Services (CMS) announcement of a nationwide temporary moratorium on the Medicare enrollment of certain Durable Medical Equipment, Prosthetics, Orthotics, and Supplies (DMEPOS) medical supply companies.
CMS has imposed a six-month nationwide Medicare enrollment moratorium affecting seven categories of medical supply companies identified as presenting elevated risk of fraud, waste, and abuse under 42 CFR § 424.570. The moratorium prohibits the enrollment of new DMEPOS suppliers within these categories across all states, territories, and the District of Columbia. It also restricts new practice locations that would be treated as initial enrollments under Medicare regulations.
According to CMS findings, medical supply companies demonstrated significantly higher revocation rates, payment suspensions, law enforcement referrals, and benefit integrity complaints compared to other DMEPOS supplier types between 2023 and 2025. CMS further identified billing vulnerabilities involving orthotic braces and intermittent urinary catheters, as well as patterns of improper payments and fraud exposure within specific medical supply company specialties.
The moratorium was implemented under authority granted by Section 1866(j)(7) of the Social Security Act, as amended by the Affordable Care Act. This provision authorizes the Secretary of Health and Human Services to impose temporary enrollment moratoria when necessary to combat fraud, waste, or abuse in Medicare, Medicaid, or CHIP programs.
While currently enrolled DMEPOS suppliers remain active, CMS clarified that new enrollments and certain ownership restructurings may trigger initial enrollment requirements and therefore fall under moratorium restrictions. Each DMEPOS location must enroll separately under Medicare rules, meaning expansion into new geographic areas may be treated as a new enrollment. Additionally, certain non-exempt changes in majority ownership within 36 months can require re-enrollment as a new supplier, which may be prohibited during the moratorium period.
HealthBridge is not introducing a new service in response to this development. Rather, the firm remains available to provide ongoing consulting, regulatory advisory, and healthcare management services to operators impacted by the moratorium. This includes healthcare entrepreneurs, private equity groups, corporate compliance officers, and existing DMEPOS suppliers evaluating restructuring or expansion strategies.
HealthBridge provides consulting and management support in areas including:
• Medicare provider enrollment strategy
• CMS Form 855S application review and compliance oversight
• Change of ownership (CHOW) and stock transfer regulatory guidance
• Indirect ownership and corporate structuring analysis
• DMEPOS compliance program development
• Medicare revocation risk assessment and corrective action planning
• Surety bond and accreditation compliance management
• Healthcare regulatory due diligence reporting
• California Department of Public Health licensing advisory
CMS reported that of approximately 80,000 DMEPOS suppliers enrolled nationwide, more than 6,000 are classified as medical supply companies, and these supplier types showed disproportionately high enforcement activity. CMS determined that restricting new enrollments within these high-risk categories would protect the Medicare Trust Funds without materially limiting beneficiary access to care, citing the availability of pharmacies, hospitals, and mail-order models that can continue to operate and enroll.
The moratorium remains in effect for six months, with the possibility of extension in additional six-month increments if CMS determines that program integrity risks persist. During this period, healthcare operators must approach DMEPOS business development, acquisitions, and ownership restructuring with heightened regulatory diligence.
References
Centers for Medicare & Medicaid Services (CMS).
Medicare, Medicaid, and Children’s Health Insurance Programs: Announcement of Nationwide Temporary Moratoria on Enrollment of Durable Medical Equipment, Prosthetics, Orthotics, and Supplies (DMEPOS) Supplier Medical Supply Companies (CMS-6099-N).
Federal Register Publication Date: February 27, 2026.
https://federalregister.gov/d/2026-03971
42 CFR § 424.570 – Temporary Enrollment Moratoria
https://www.ecfr.gov/current/title-42/part-424/section-424.570
Social Security Act § 1866(j)(7) – Enrollment Moratoria Authority
https://www.ssa.gov/OP_Home/ssact/title18/1866.htm
