Regulatory1 min read·Edition #17

CMS Launches CRUSH Anti-Fraud Initiative With Six-Month DME Enrollment Freeze

CMS launched the CRUSH anti-fraud initiative — Comprehensive Regulations to Uncover Suspicious Healthcare — imposing a six-month nationwide moratorium on all new Medicare enrollment for durable medical equipment suppliers. The agency stopped $1.5 billion in suspected fraudulent DME billing in 2025, and the moratorium is designed to choke off new entrants exploiting the enrollment process while CMS overhauls its supplier verification systems.

DME fraud has been one of Medicare's most persistent cost centers. The Office of Inspector General has repeatedly flagged telemarketing-driven DME schemes — particularly in orthotics, braces, and respiratory equipment — as among the highest-volume fraud typologies. The CRUSH initiative goes beyond enforcement actions to structural reform: CMS is requesting information on new supplier screening requirements, surety bond thresholds, and real-time claims analytics. Comments on the CRUSH request for information are due March 30, giving industry stakeholders a narrow window to influence the rulemaking direction.

For legitimate DME suppliers already enrolled in Medicare, the moratorium is a competitive tailwind. No new competitors can enter the market for six months, and the enhanced screening requirements that follow will raise the barrier to entry permanently. For dental practices that prescribe or refer for DME-adjacent products — mouth guards for sleep apnea, post-surgical braces, or custom orthotics — the moratorium doesn't affect existing supplier relationships but may delay onboarding new vendors. The broader signal: CMS under this administration is prioritizing fraud enforcement as both a cost-containment strategy and a political message about program integrity.

What to watch: The March 30 comment deadline on CRUSH — the final rule will determine new screening requirements, bond amounts, and whether the moratorium extends beyond six months.

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