WASHINGTON, D.C. – As part of the White House Anti-Fraud Task Force’s efforts to stop fraud in the healthcare system, CMS has barred 11 medical supply companies with more than $3.4 billion in suspected fraudulent billing practices in 2025 and 2026 from receiving future Medicare Advantage (MA) Part C and Part D payments.
These 11 DMEPOS suppliers, (1) had submitted no claims prior to 2025; (2) used improper billing practices for their claims; (3) had billed for medical equipment to beneficiaries already deceased; and (4) supplied equipment to beneficiaries who never requested or received it. Four of the suppliers had already been revoked from Original Medicare and began billing Medicare Advantage plans instead.
“Fraudsters who take advantage of the recently deceased to line their pockets represent a level of indecency that we will not stand for,” said CMS Administrator Dr. Mehmet Oz via press release. “Brazen scams like these have plagued Medicare for decades, but under President Trump’s leadership and working with the White House Anti-Fraud Task Force, CMS is protecting the Medicare Trust Funds and its beneficiaries by using advanced data analytics to identify fraud networks and stop suspicious payments before the check clears.”
Working in coordination with the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG), CMS is ensuring the suppliers will no longer receive payments for healthcare items, services, or drugs, furnished, ordered or prescribed to Medicare beneficiaries and paid for by MA and Part D sponsors. The placement of the 11 suppliers on the CMS Preclusion List was made after it was determined that their conduct was detrimental to the best interests of the Medicare program.
The enforcement actions demonstrate how CMS is using multiple enforcement tools at its disposal—including data analytics, payment safeguards, enrollment authorities, and the Preclusion List—to identify suspicious activity, stop questionable payments before they leave the agency, and prevent bad actors from continuing to profit from Medicare.