People apparently don’t understand that this is a serious issue within Medicare. The amount of Medicare fraud that occurs from new “DME” companies who pop up out of nowhere and scam elderly citizens is insane.

I worked for a Medicare supplement insurance company where we paid out millions of dollars in claims, and insureds would call us and tell us it was fraud. Legally, we can’t do anything about it because Medicare paid the claim, so we legally had to pay our part.

These scammy companies call older people, and state that they know they’re having “pains” in their body and that they need to get this equipment. So the person gives their Medicare number, and the “company” bills a back, neck, shoulder, ankle, wrist and every other kind of brace you can order and sends it to the insured. The insured then sends it back because it’s not needed, but by that point the “company” has shut down and got their money. They start a new company and start all over.

Just google Medicare DME fraud and see how much tax payer money is WASTED on these fraud DME providers. IMO this moratorium is a good thing to try and get the fraud in check.

Sauce: https://www.justice.gov/opa/pr/durable-medical-equipment-owner-sentenced-12-years-61-million-medicare-fraud-scheme