11 Medical Supply Companies Identified in $3.4B Medicare Fraud Scheme

WASHINGTON—Centers for Medicare & Medicaid Services (CMS) announced it has identified and is barring 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 durable medical equipment, prosthetics, orthotics and supplies (DMEPOS) suppliers allegedly:

• Had submitted no claims prior to 2025
• Used improper billing practices for their claims
• Had billed for medical equipment to beneficiaries already deceased
• Supplied equipment to beneficiaries who never requested or received it

Four of the suppliers had already been revoked from original Medicare and began billing MA plans instead.

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.

All 11 DMEPOS suppliers billed Medicare for multiple beneficiaries who were deceased. In two particular cases, suppliers submitted nearly $24 million in claims—payments CMS stopped from reaching the suppliers by using its original Medicare payment-suspension authority:

• One Florida-based provider submitted approximately $18.4 million in catheter claims over two consecutive days—$6.1 million for 500 beneficiaries on Dec. 15, 2025, followed by $12.3 million for 777 beneficiaries the next day. CMS’ payment-suspension authority prevented those payments from reaching the supplier.
• A Texas-based company submitted approximately $5.5 million in orthotics claims, with CMS similarly suspending payments before they reached the supplier. Investigators interviewed six beneficiaries who said they did not know the ordering providers, had never heard of the company and did not need the orthotics. CMS also identified claims for nine beneficiaries with dates of service after their deaths and determined the supplier was not operational at its reported location.