Medicare Freezes New Supplier Enrollment Amid Russian-Linked Texas Fraud Case

Moratorium aims to prevent high-risk medical supply companies from entering the system as oversight tightens.

Mar. 18, 2026 at 3:23am

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The federal government has imposed a six-month nationwide moratorium blocking Medicare enrollments for most new medical supply companies, in response to an alleged multimillion-dollar Medicare billing scheme tied to a Russian citizen named Nika Machutadze. Machutadze is accused of rapidly submitting high-volume Medicare claims through two companies, Centurion Superior Medical LLC in Texas and another in Florida, for medical items that patients never ordered or received.

Why it matters

This case highlights ongoing challenges in combating healthcare fraud, which is estimated to cost the federal government nearly $100 billion per year. The moratorium is an attempt to tighten oversight and prevent new high-risk suppliers from entering the Medicare system as the investigation into the Russian-linked fraud scheme continues.

The details

Records show Machutadze took over Centurion in September 2025 and almost immediately began filing tens of thousands of claims with Medicare, mostly for urinary catheters, totaling roughly $134 million. While Medicare froze reimbursements, supplemental insurers did not, allowing money to move quickly through U.S. accounts, with at least $988,830 wired to an account in Hong Kong. A federal criminal complaint also tied Machutadze to a second company in Florida that submitted 1.64 million claims totaling $3.33 billion.

  • In September 2025, Machutadze took over Centurion Superior Medical LLC.
  • In just over a month, Centurion filed nearly 79,000 claims, mostly for urinary catheters, billing roughly $134 million.
  • In February 2026, the federal government imposed a six-month nationwide moratorium blocking Medicare enrollments for most new medical supply companies.

The players

Nika Machutadze

A Russian citizen accused of rapidly submitting high-volume Medicare claims through two companies, Centurion Superior Medical LLC in Texas and another in Florida, for medical items that patients never ordered or received.

Centurion Superior Medical LLC

A medical supply company in Texas tied to Nika Machutadze, which rapidly submitted tens of thousands of claims to Medicare, mostly for urinary catheters, totaling roughly $134 million.

Dr. Mehmet Oz

The administrator of the Centers for Medicare & Medicaid Services and former TV host, who announced the nationwide freeze on new medical supply company enrollments in Medicare.

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What they’re saying

“These self-serving scoundrels, that's what they are, who rob our federal and state health programs, have decided it is worth the risk. We have to take these crimes seriously and treat them as seriously as if they were bank robberies.”

— Dr. Mehmet Oz, Administrator, Centers for Medicare & Medicaid Services (White House press conference)

“What the hell is this?”

— Florida woman (Reviewing her husband's Medicare summary)

What’s next

The judge in Machutadze's case will decide on Tuesday whether or not to allow him out on bail.

The takeaway

This case highlights the ongoing challenge of combating healthcare fraud, which costs the federal government billions annually. The moratorium on new medical supply company enrollments in Medicare is an attempt to tighten oversight and prevent further exploitation of the system as the investigation into this Russian-linked fraud scheme continues.