The Centers for Medicare & Medicaid Services (CMS) has announced significant updates to the Durable Medical Equipment, Prosthetics, Orthotics, and Supplies (DMEPOS) Competitive Bidding Program (CBP). These changes aim to protect the Medicare Trust Funds and reduce copays for beneficiaries. The details are outlined in the Calendar Year 2026 Home Health Prospective Payment System Final Rule (CMS-1828-F), published in the Federal Register on November 28, 2025.
CMS has laid out a timeline for the next round of bidding. Starting December 2025, CMS will initiate a pre-bidding supplier awareness program. By late spring or early summer of 2026, specific dates for registration and bidding will be announced. Contracts are expected to be awarded by late summer or early fall of 2027, with new payment amounts effective no later than January 1, 2028.
In this upcoming round, several product categories will be included under Remote Item Delivery (RID), such as Class II Continuous Glucose Monitors and Insulin Pumps. A six-month transition period is planned for beneficiaries moving from non-contract to contract suppliers.
A key change involves consolidating all bidding-related IT systems into one secure portal called Connexion. This system will streamline processes by eliminating the need for suppliers to use multiple platforms during bid submission.
The calculation method for Single Payment Amounts (SPAs) has been revised to use the 75th percentile of winning bids rather than the maximum bid. Additionally, SPAs will be updated annually based on changes in the Consumer Price Index.
A nationwide RID CBP is being introduced for items typically delivered via mail order. Contract suppliers must provide these items to all Medicare beneficiaries regardless of location.
Payment rules have also been updated for continuous glucose monitors and insulin infusion pumps, which will now be rented monthly with all necessary supplies included in the rental rate.
To ensure fair competition among suppliers, CMS has adjusted requirements for submitting financial documents during bidding. Entities without a business credit report must submit additional personal credit information.
CMS continues to emphasize beneficiary protections and program safeguards by requiring contract suppliers to adhere to quality standards and ensuring transparency through real-time claims monitoring data available on their website.
For more information about quality standards and accreditation requirements, visit https://www.cms.gov/medicare/payment/fee-schedules/dmepos-competitive-bidding/quality-standards-accreditation-licensing.
Information from this article can be found here.
