On February 25, 2026, the Centers for Medicare and Medicaid Services (CMS) announced a nationwide six-month moratorium (or pause) on Medicare enrollment for certain medical supply companies that provide durable medical equipment, prosthetics, orthotics, and supplies (DMEPOS). The policy’s rollout spread significant confusion and misinformation, leading many Medicaid and Medicare recipients to believe the federal insurance programs would no longer cover durable medical equipment (DME) such as wheelchairs, oxygen equipment, and diabetes supplies. With all the attacks on disabled people, including cuts to Medicaid, it is no wonder people were confused.
What does the moratorium do?
Beginning on February 27, 2026, seven types of DMEPOS suppliers or practice locations will not be allowed to enroll in Medicare for six months. The moratorium can be extended in six-month increments. Medical supply companies affected by this moratorium include providers with orthotics personnel, pedorthic personnel, or prosthetic and orthotic personnel, as well as those with a registered pharmacist or respiratory therapist, seeking to enroll anywhere in the United States, including all states, territories, and Washington, D.C.
The moratorium applies to:
- Initial Medicare enrollment applications for affected suppliers.
- Applications reporting changes in majority ownership that require reenrollment.
- New supplier locations that require separate enrollments.
The moratorium does not apply to:
- Enrollment applications already submitted before the moratorium took effect.
- Updates to supplier contact information or other administrative details.
- Changes in practice location (unless the move brings the supplier to a location where the moratorium applies).
- Changes in majority ownership (except for cases that require initial enrollment).
Existing DME suppliers can continue operating and providing equipment to Medicare beneficiaries. The moratorium does not focus on Medicaid or the Children’s Health Insurance Program (CHIP), but CMS offered to work with states and territories to implement moratoriums in their own jurisdictions through consultation.
How is the administration attempting to justify the moratorium?
CMS has cited fraud concerns as a reason for the moratorium. Yet in fiscal year 2024, the agency stated that a majority of improper payments to Medicare DMEPOS providers were not necessarily due to fraud. Instead, the payments were labeled as having paperwork issues or documentation that did not sufficiently demonstrate medical necessity. Moreover, for nine consecutive years, CMS reported percentages of improper payments under the statutory threshold of 10 percent—and in the past year, the percentage of improper payments for Medicare fee-for-service, which includes DME, has decreased. CMS identified 7.66 percent of payments in 2024 and 6.34 percent of payments in 2025 to be improper. As other adjustments such as training and auditing can help reduce improper payments, the Trump administration is overreacting by using a moratorium.
As the administration stalls DMEPOS provider enrollments, it allowed the Pentagon to irresponsibly spend $93 billion in September 2025 alone, $9 million of which went toward Alaskan king crab and lobster tails. The Pentagon has also failed its audit eight years in a row. It is obvious that the administration would rather cut into essential social programs assisting disabled people and older adults than address larger budgetary issues.
How does the moratorium affect DME access?
Blocking new vendors from enrolling in Medicare: 1) delays the addition of new providers to the Medicare pool who may have new technology; and 2) puts additional pressure on smaller DME providers who already face barriers to enrollment and recertification. DME continuously evolves alongside technological advances and shifting patient needs. Respondents to the 2025 “Mobility Device User Survey” reported that when they didn’t have the right equipment, they lost their ability to move about their home and community. They also experienced an increased risk of pressure sores (ulcers), swelling, and pain. Newer technology can decrease these risks, but stalling pioneering companies from becoming vendors could greatly decrease disabled people’s and older adults’ independence and overall health.
In addition, small DME suppliers are already dealing with tariffs, low reimbursement rates (which could go lower when the amended competitive bidding program starts), and high compliance and accreditation costs. Blocking enrollment of new DME providers or the reenrollment of certain providers could give them a stronger incentive to merge with larger vendors. The moratorium will also cut some vendors off from Medicaid funding because several states require DME providers to be enrolled in Medicare before they enroll in Medicaid. Fewer vendors could create longer wait times and more frustration for patients, as well as coverage gaps in rural or small communities.
Conclusion
The Trump administration continues to cut programs such as Medicare that assist disabled people while cutting $1 trillion in taxes for the rich and spending $1 billion per day on a war with no clear objectives. These funds, along with the additional $200 billion the Pentagon just requested for the war in Iran, could cover the estimated $194 billion in medical debt Americans held in 2024 or reverse the $1 trillion in Medicaid cuts made by the One Big Beautiful Bill Act. Cutting DME providers’ enrollment access to Medicare and some state Medicaid programs, when disabled people and older adults already find accessing equipment and supplies challenging, will harm the disability community. CMS can continue to audit payments while allowing new providers to enroll in Medicare.
The authors would like to thank William Roberts, Brian Keyser, and Peter Gordon for their reviews; Chandler Hall and Rosa Barrientos-Ferrer for fact-checking; and CAP’s Editorial, Legal, and National Security and International Policy teams for their guidance.