CMS Proposes Changes to DMEPOS Competitive Bidding Program

WASHINGTON—The Centers for Medicare & Medicaid Services (CMS) is proposing an additional change to the durable medical equipment, prosthetics & orthotics services competitive bidding program (DMEPOS CBP).

Specifically, CMS is proposing to update the DMEPOS CBP’s bid surety bond requirements. The proposed change would increase the bid surety bond amount from $50,000 to $100,000 for remote item delivery competitions, while keeping the current $50,000 requirement for all other competitions. CMS said this change aims to deter bidders from submitting disingenuous bids. 

Round 2028 Bidder Education

CMS will soon launch the first phase of its Round 2028 DMEPOS CBP bidder education initiative, according to the American Association for Homecare (AAHomecare) This early education phase will inform prospective DMEPOS suppliers about the upcoming bidding process, eligibility requirements, and key program changes before the registration and bidding periods open, giving them ample time to prepare. In the meantime, CMS has posted frequently asked questions (FAQs) located on the competitive bidding implementation contractor (CBIC) website.

The CBIC launched the Round 2028 webpage that features a list of 24 frequently asked questions related to the new bidding round. 

Highlights of newly added questions include:

• Clarifies that one bid surety bond is required, per bidding entity, for each competitive bidding area (CBA) where a bid(s) is submitted. Only one bid surety bond is required for a CBA regardless of the number of locations (identified by Provider Transaction Access Number (PTAN)) or product categories included on your bid for the CBA. For example, if a bidding entity has five locations on a bid for three product categories in one CBA, there must be one bid surety bond for the CBA. 
• List of HCPCS codes included in Round 2028 will be released in early summer 2026.  
• Because continuous glucose monitors and insulin pumps will be reimbursed at a bundled monthly rate, HCPCS codes E0784, E2102, and E2103 will shift to bundled monthly rental payments effective for Round 2028. The codes will remain in use for billing purposes, but payment will be a bundled monthly rate. 
• To determine the lead item for the new hydrophilic urinary catheters product category, CMS will use the most recent utilization data available. This will include partial-year 2026 claims for the HCPCS codes that became effective January 1, 2026 (A4295, A4296, and A4297)
• For the urological supplies product category, HCPCS Level II codes A4351, A4352, and A4353 included hydrophilic urinary catheters prior to 2026. Because these codes no longer include hydrophilic catheters effective January 1, 2026, CMS will use partial-year 2026 claims data to determine utilization for this product category. 

AAHomecare said it thanks CMS for answering many of the CBP-related questions that were submitted by the Association however, the FAQ falls short on answering questions such as how exactly the RID CBP will be phased in. AAHomecare said it will continue to work with CMS on gaining clarity on the next round.

In addition, CMS announced they will be launching a bidder education initiative soon in preparation for the upcoming round. The CBIC website will be the primary resource for suppliers interested in learning more. Prospective bidders are encouraged to subscribe to the CBIC’s email updates.