§ 424.570 Moratoria on newly enrolling Medicare providers and suppliers. ( a ) *Temporary moratoria* — ( 1 ) *General rules.* ( i ) CMS may impose a moratorium on the enrollment of new Medicare providers and suppliers of a particular type or the establishment of new practice locations of a particular type in a particular geographic area.
( ii ) CMS will announce the temporary enrollment moratorium in a Federal Register document that includes the rationale for imposition of the temporary enrollment moratorium.
( iii ) The temporary moratorium does not apply to any of the following: ( A ) Changes in practice location (except if the location is changing from a location outside the moratorium area to a location inside the moratorium area).
( B ) Changes in provider or supplier information, such as phone numbers.
( C ) Changes in ownership (except changes in ownership of home health agencies that would require an initial enrollment).
( iv ) A temporary moratorium does not apply to any enrollment application that has been received by the Medicare contractor prior to the date the moratorium is imposed.
( 2 ) *Imposition of a temporary moratoria.* CMS may impose the temporary moratorium if— ( i ) CMS determines that there is a significant potential for fraud, waste or abuse with respect to a particular provider or supplier type or particular geographic area or both. CMS's determination is based on its review of existing data, and without limitation, identifies a trend that appears to be associated with a high risk of fraud, waste or abuse, such as a— ( A ) Highly disproportionate number of providers or suppliers in a category relative to the number of beneficiaries; or
( B ) Rapid increase in enrollment applications within a category;
( ii ) A State Medicaid program has imposed a moratorium on a group of Medicaid providers or suppliers that are also eligible to enroll in the Medicare program;
( iii ) A State has imposed a moratorium on enrollment in a particular geographic area or on a particular provider or supplier type or both; or
( iv ) CMS, in consultation the HHS OIG or the Department of Justice or both and with the approval of the CMS Administrator identifies either or both of the following as having a significant potential for fraud, waste or abuse in the Medicare program: ( A ) A particular provider or supplier type.
( B ) Any particular geographic area.
( b ) *Duration of moratoria.* A moratorium under this section may be imposed for a period of 6 months and, if deemed necessary by CMS, may be extended in 6-month increments. CMS will publish a document in the Federal Register when it extends a moratorium.
( c ) *Denial of enrollment: Moratoria.* A Medicare contractor denies the enrollment application of a provider or supplier if the provider or supplier is subject to a moratorium as specified in paragraph (a) of this section.
( d ) *Lifting moratoria.* CMS will publish a document in the Federal Register when a moratorium is lifted. CMS may lift a temporary moratorium at any time after imposition of the moratorium if one of the following occur: ( 1 ) The President declares an area a disaster under the Robert T. Stafford Disaster Relief and Emergency Assistance Act, 42 U.S.C. 5121-5206 (Stafford Act).
( 2 ) Circumstances warranting the imposition of a moratorium have abated or CMS has implemented program safeguards to address the program vulnerability.
( 3 ) The Secretary has declared a public health emergency under section 319 of the Public Health Service Act in the area subject to a temporary moratorium.
( 4 ) In the judgment of the Secretary, the moratorium is no longer needed.
[76 FR 5965, Feb. 2, 2011, as amended at 84 FR 47856, Sept. 10, 2019]