CMS Announces Major Updates to the DMEPOS Competitive Bidding Program, Including New Remote Item Delivery (RID) Category

CMS has unveiled significant changes to the Durable Medical Equipment, Prosthetics, Orthotics, and Supplies (DMEPOS) Competitive Bidding Program, including the launch of a new Remote Item Delivery (RID) nationwide bidding round. This round will apply to items commonly delivered by mail or shipped directly to beneficiaries and will include:

• Class II Continuous Glucose Monitors (CGMs)
• Insulin infusion pumps
• Urological supplies
• Ostomy supplies
• Hydrophilic urinary catheters
• Off-the-shelf (OTS) back, knee, and upper-extremity braces

Program Timeline

• December 2025: Supplier outreach begins
• Late Spring/Summer 2026: Registration dates announced; bidder education starts
• Late Summer/Fall 2026: Bid window opens
• Late Summer/Fall 2027: Contract awards and single payment amounts published
• January 1, 2028: New contracts and pricing take effect (with a six-month beneficiary transition period)

All product categories will participate in the nationwide RID CBP, meaning contract suppliers must furnish covered items to all beneficiaries regardless of geographic location. Beneficiaries may still pick up items in person at a pharmacy or storefront owned by a contract supplier or subcontractor.

Key Changes Providers and Suppliers Need to Know

• Consolidated Bidding Portal (Connexion)
  • All bidding, documentation, and communication will now occur in one system, eliminating the old split between DBidS and Connexion.
• Updated Single Payment Amount Methodology
  • SPAs will be based on the 75th percentile of winning bids (not the maximum winning bid).
  • SPAs will be updated annually during the contract using CPI-U adjustments, but may not exceed specific fee schedule caps.
• New Monthly Rental Payment Model

For CGMs and insulin pumps:

• Payment will shift to monthly rental, including all supplies and accessories.
• Suppliers may bill up to three months in advance.
• Contract suppliers retain ownership of the equipment.
• Beneficiaries owning their devices pre-contract may continue using them, but contract suppliers must furnish replacement supplies.

• Revised Bid Amount Limits
  • CGM rental bids cannot exceed a CMS-calculated ceiling (example based on 2025 schedule: $272.69).
  • Braces, urological, and ostomy supply bids are capped at the average 2026 fee schedule amounts.
• Simplified Financial Documentation

Bidders now generally only submit:

• A business credit report with a numerical score, or
• For newer entities:
  • A business report showing insufficient credit history plus a personal credit report from the Authorized or Delegated Official.
• Bid Surety Bond & Covered Document Review Updates
  • Bidders continue to need a $50,000 surety bond per CBA.
  • CMS will give suppliers one 10-business-day opportunity to fix bond deficiencies.
  • Missing document reviews now occur only at the close of the bid window, simplifying earlier processes.
• Tribal Exemption
  • IHS and tribal suppliers no longer need to bid to furnish DMEPOS items within CBAs for AI/AN Medicare beneficiaries.
• New Contract Termination Clause
  • CMS may terminate contracts or subareas during emergencies or access issues to protect beneficiary care.

Source: https://www.cms.gov/newsroom/fact-sheets/durable-medical-equipment-prosthetics-orthotics-supplies-competitive-bidding-program-updates