The Centers for Medicare & Medicaid Services (CMS) said in a Tuesday press release that it identified and is barring 11 medical supply companies tied to more than $3.4 billion in suspected fraudulent billing practices in 2025 and 2026.
The suppliers submitted no claims before 2025, used improper billing, billed for deceased beneficiaries and supplied equipment to beneficiaries who never requested or received it. Four had been revoked from Original Medicare before billing Medicare Advantage plans.
Companies Billed Medicare
All 11 suppliers billed Medicare for multiple deceased beneficiaries. CMS stopped nearly $24 million in claims in two cases.
A Florida provider submitted about $18.4 million in catheter claims: $6.1 million for 500 beneficiaries on Dec. 15, 2025, followed by $12.3 million for 777 beneficiaries the next day.
A Texas company submitted about $5.5 million in orthotics claims. Six beneficiaries said they did not know the ordering providers or need orthotics. Nine had dates of service after their deaths, and the supplier was not operational at its location.
A New Jersey firm billed 38 encounters involving deceased beneficiaries. A Florida company was suspected of a telemarketing scheme, with beneficiaries reporting they did not receive billed braces.
Oz Highlights Crackdown
CMS Administrator Dr. Mehmet Oz said in the press release, "Fraudsters who take advantage of the recently deceased to line their pockets represent a level of indecency that we will not stand for." CMS said it is using advanced data analytics, payment safeguards, enrollment authorities and the Preclusion List to stop suspicious payments while coordinating with HHS-OIG.
Oz later addressed the crackdown on X, saying, "We’re closing that door." He added that CMS is using advanced analytics and stronger safeguards to stop suspicious payments and protect Medicare beneficiaries and taxpayer dollars.
The action comes amid broader healthcare fraud scrutiny. A UnitedHealth Group Inc. (NYSE:UNH)
lawsuit alleges Medicare Advantage revenue was inflated through diagnoses. CMS has targeted ACA marketplace enrollment fraud. Oz has highlighted fraud reduction and AI as tools to strengthen Medicare finances.
CMS said it will continue working with HHS-OIG and partners to identify suspicious billing and safeguard the Medicare Trust Fund and beneficiaries.
Disclaimer: This content was produced with the help of AI tools and was reviewed and published by Benzinga editors.
Photo courtesy: 1 Andrew Thomas 1 / Shutterstock.com
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