Policy & oversight
CMS Bars Eleven Medical Equipment Suppliers Over 3.4 Billion Dollars in Suspected Fraudulent Billing
Federal health officials used data analytics and enrollment authorities to block eleven durable medical equipment companies from future Medicare payments after finding they billed for deceased beneficiaries and items patients never received.
By the Goodsurance editorial teamSeptember 9, 2026
The Centers for Medicare and Medicaid Services announced on September 8, 2026, that it has barred eleven durable medical equipment, prosthetics, orthotics, and supplies (DMEPOS) suppliers from receiving future Medicare Advantage Part C and Part D payments, citing more than 3.4 billion dollars in suspected fraudulent billing during 2025 and 2026.
CMS placed the suppliers on the federal Preclusion List, which prevents them from billing Medicare Advantage plans. The agency said the companies had submitted no claims before 2025, used improper billing practices, billed for equipment attributed to beneficiaries who were already deceased, and submitted claims for items that patients never requested or received.
CMS barred 11 equipment suppliers over 3.4 billion dollars in suspected Medicare fraud, including billing for deceased beneficiaries.
Among the examples CMS disclosed: a Florida-based supplier submitted roughly 18.4 million dollars in catheter claims over two consecutive days, with many of those claims tied to deceased beneficiaries. CMS suspended payments before funds were delivered. A Texas-based company submitted about 5.5 million dollars in orthotics claims; beneficiaries told investigators they did not know the supplier and had no need for the equipment. A New Jersey firm was added to the Preclusion List after billing a Medicare Advantage plan for 38 encounters in which the beneficiary had already died.
CMS said it used data analytics to detect the unusual billing patterns and blocked payments before funds reached several of the suppliers. The actions are part of the Trump administration's ongoing anti-fraud effort, coordinated through a White House Anti-Fraud Task Force.
Medicare beneficiaries can review their Medicare Summary Notice or their account on MyMedicare.gov to check whether equipment or services appear that they did not request or receive.
In plain words
The government stopped eleven medical supply companies from getting paid by Medicare. Together, those companies tried to charge more than 3.4 billion dollars. Some billed for equipment sent to people who had already died. Others charged for items patients say they never got or asked for. The government used computer tools to catch these problems and blocked payments before they went out. If you see something on your Medicare paperwork that you did not receive, you can check your account at MyMedicare.gov or call 1-800-MEDICARE to report it.
Understand the basics first
Source: CMS
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