Diabetic Shoe Girl LLC, ALJ Ruling 2026-28 (HHS-CRD June 08, 2026)

RULING GRANTING CMS’ MOTION TO DISMISS

On December 18, 2025, Petitioner, Diabetic Shoe Girl LLC, filed a request for a hearing before an administrative law judge (ALJ) to contest an unfavorable reconsideration decision imposed by Chags Health Information Technology, a contractor acting on behalf of the Centers for Medicare & Medicaid Services (CMS).  The reconsideration determination upheld a September 17, 2025 initial determination revoking Petitioner’s Medicare enrollment and billing privileges pursuant to 42 C.F.R. § 424.535(a)(1) and imposing a re-enrollment bar.   In response to Petitioner’s request for hearing, the Civil Remedies Division (CRD) issued an Acknowledgment Letter, my Standing Order, and the CRD Procedures on January 6, 2026. 

On March 6, 2026, CMS filed a Motion to Dismiss with one attachment, explaining that the initial determination, which resulted in the revocation of Petitioner’s enrollment and billing privileges, was rescinded.   CMS attached a March 2, 2026, notice from Novitas Solutions explaining that the September 17, 2025, initial determination was rescinded.  The notice also stated that Petitioner’s Medicare Provider Transaction Access Number (PTAN) was reactivated with the effective date that existed prior to the revocation. 

To date, Petitioner has not responded to CMS’s motion to dismiss.  Because the initial determination has been rescinded and Petitioner’s PTAN was reactivated, Petitioner no longer has a right to a hearing.  Pursuant to 42 C.F.R. § 498.71, an ALJ may dismiss a

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hearing request when the party requesting a hearing is not a proper party or no longer has a right to a hearing. 

Therefore, CMS’s motion to dismiss is granted.  The parties may request that an order dismissing a case be vacated pursuant to 42 C.F.R. § 498.72.