CMS hits pause on new durable medical equipment suppliers
The Trump Administration Implements Nationwide Moratorium on Medical Equipment Suppliers
The Trump administration made a significant announcement on Wednesday regarding a nationwide moratorium on new suppliers for certain medical equipment. This decision was made in response to the rampant “fraud, waste, and abuse” that has plagued the industry providing wheelchairs, artificial limbs, and other essential equipment.
During a press conference, Centers for Medicare and Medicaid Services Administrator Mehmet Oz expressed the magnitude of the issue, stating that the level of fraud within the industry is so substantial that it is easier to open a medical equipment supplier than to open a bank account. Health Secretary Robert F. Kennedy, Jr. and Vice President JD Vance also joined the discussion on combating healthcare fraud.
It is important to note that the moratorium does not halt the distribution of medical equipment but targets a crucial aspect of healthcare for seniors and individuals with disabilities. The affected devices and equipment range from gauze and oxygen tanks to urinary catheters and breast prostheses for postmastectomy patients.
The decision to impose a moratorium followed an analysis of current and historical Medicare enrollment and claims data, as outlined in a Federal Register notice. The impacted companies, which are suppliers of durable medical equipment, prosthetics, orthotics, and supplies, represent a small fraction of the agency’s $1.7 trillion budget. However, the industry has a history of recurring fraud issues, with federal investigations uncovering improper payments totaling millions of dollars over the years.
Past moratoriums have been utilized by CMS to address fraud in home health agencies and ambulance suppliers. The current pause is set to last for six months, with the possibility of additional six-month extensions as permitted by federal law. Administrator Oz did not specify specific targets that CMS aims to achieve by the end of the moratorium.
Josh Marx, CEO of the Medical Service Company and chairman of the board for AAHomecare, commended CMS Administrator Oz’s commitment to preventing criminals from enrolling in the DMEPOS program. He expressed a desire to collaborate with CMS to enhance enrollment practices without negatively impacting patients and communities by mandating a complete halt to new enrollments for existing providers.
Furthermore, federal health department leaders announced the upcoming launch of a CMS tipline to report fraud and a temporary suspension of $259.5 million in Medicaid funding to Minnesota.
