CMS bans 11 companies for $3.4 billion Medicare fraud in DMEPOS sector
A recent CMS action has resulted in the exclusion of 11 DMEPOS suppliers involved in extensive Medicare fraud totaling over $3.4 billion. The companies engaged in fraudulent billing, submitting claims for deceased beneficiaries, and sending unsolicited equipment, with some previously barred from Original Medicare.
Eleven companies who supply durable medical equipment, prosthetics, orthotics, and supplies (DMEPOS) have been barred from receiving Medicare Advantage (MA) Part C and Part D payments due to alleged fraud totaling more than $3.4 billion, according to the Centers for Medicare & Medicaid Services (CMS).
The companies are accused of:
Fraudulent billing practices from 2025-2026
Not submitting claims before 2025
Billing deceased beneficiaries
Sending unsolicited equipment to beneficiaries who never received it
It’s important to note that four of the companies had already been barred from Original Medicare prior to the MA schemes, causing them to change focus. The decision to include them on the CMS Preclusion List was made after their actions were deemed detrimental to the best interests of the Medicare program, according to CMS.
