CMS imposes moratorium on some orthotics, prosthetics as part of fraud crackdown

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CMS is addressing healthcare fraud in a multipronged crackdown that includes a nationwide moratorium on some orthopedic equipment, according to a Feb. 25 news release.

Four things to know:

1. CMS will impose a six-month moratorium on new Medicare enrollment for certain durable medical equipment, prosthetics, orthotics and supplier builds. The supplier enrollment moratorium will let CMS explore additional safeguards to mitigate fraud and waste.

2. CMS plans to publish information on suppliers who were revoked from their participation in the Medicare program. The move offers transparency to patients and payers to know which companies have been subject to administrative enforcement action.

3. The announcement included the deferral of $259.5 million of quarterly federal Medicaid funding in Minnesota. The freeze includes claims from July through September 2025, targeting spending on personal care services, home and community-based services, and other practitioner services. 

4. CMS is also seeking stakeholder feedback to develop a possible rule under the Comprehensive Regulations to Uncover Suspicious Healthcare initiative. 

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