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Getting the latest healthcare news for you
Getting the latest healthcare news for you
CMS is blocking 11 durable medical equipment suppliers from Medicare Advantage and Part D payments after uncovering over $3.4 billion in suspected fraudulent billing in 2025–2026. The companies billed for deceased patients, equipment never delivered, and supplies never requested. It's part of the Trump administration's broader CRUSH anti-fraud initiative.
The Centers for Medicare & Medicaid Services (CMS) is turning up the heat on fraudulent medical equipment suppliers, adding 11 durable medical equipment (DME) companies to its Preclusion List — blocking them from receiving payments under Medicare Advantage and Part D. CMS suspects these firms were behind more than $3.4 billion in fraudulent billing during 2025 and 2026, with red flags including billing for deceased patients, equipment never delivered, and supplies patients never requested.
Two cases stood out as particularly egregious: a Florida provider submitted $18.4 million in catheter claims over just two days, while a Texas supplier billed $5.5 million for orthotics — with multiple beneficiaries confirming they had never heard of the company. Notably, four of the 11 suppliers had already been banned from traditional Medicare but pivoted to billing Medicare Advantage plans instead.
By the Numbers:
Why it matters: Medicare fraud drains billions from public funds and puts vulnerable patients at risk. CMS's use of advanced data analytics to flag suspicious payments before they are processed marks a significant shift toward proactive fraud prevention — and signals that the crackdown is far from over.
