We Are Unstoppable: A November Note from the President

Published in Member Communities on November 05, 2025

By Lindy Tentinger, President, VGM & Associates

Driving Q4 Growth Amid Policy Shifts and Market Headwinds

As we enter the final stretch of 2025, our message to you is clear: VGM will not stop. Not in the face of policy uncertainty. Not in the face of economic headwinds. And certainly not when opportunities to serve patients and grow your business are right in front of us.

This month, we’re spotlighting three key areas that matter most to HME providers and manufacturers as we close out the year: leveraging HSA/FSA dollars for Q4 growth, navigating the latest tariff developments, and staying vigilant on competitive bidding.

HSA/FSA Dollars: A Q4 Growth Engine

The fourth quarter is prime time for consumer spending through Health Savings Accounts (HSAs) and Flexible Spending Accounts (FSAs). These tax-advantaged accounts are designed to help consumers manage healthcare costs — and many expire at year-end, especially FSAs with “use-it-or-lose-it” rules.

Recent data shows:

37% of Americans report having either an HSA or FSA.
Account holders skew toward higher purchasing power and are more likely to have children and work in professional services.
Spending categories include OTC medications, first aid supplies, medical devices, vision care, and even menstrual care products. [numerator.com]

What you can do:

Educate your customers: Use signage, email campaigns, and social media to remind patients that HSA/FSA dollars can be used for many of your products. Check out this targeted year-end mailer opportunity offered by VGM and Strategic Imaging here.
Bundle and promote: Create Q4 bundles that align with common needs: resupply, diabetic supply packs, or seasonal respiratory care.
Partner with employers and benefits managers: Offer educational materials or webinars to help employees understand how to maximize their benefits before year-end.

This is not just a retail opportunity, it’s a chance to connect with patients proactively, improve outcomes, and drive meaningful revenue before December 31.

Tariffs: What You Need to Know Right Now

The tariff landscape has shifted significantly in 2025, with broad implications for the HME industry.

Key developments:

De minimis exemption suspended: As of August 29, shipments that previously qualified for duty-free treatment now face full tariffs, unless sent via international postal networks.
New product-specific tariffs: Imports of softwood timber, kitchen cabinets, and upholstered wood products now face tariffs of 10–25%, which may impact home modification and storage solutions used in rehab and clinical settings. [aaei.org]
Vehicle and parts tariffs: A 25% tariff on medium- and heavy-duty trucks and parts begins November 1, which could affect logistics and delivery operations. [kpmg.com]

While not all tariffs directly target HME, the ripple effects on supply chains, vendor pricing, and product availability are real. We encourage members to:

Stay close to suppliers
Ask about tariff-related cost adjustments
Prepare for potential price fluctuations in Q1 2026

Competitive Bidding: Wait-and-See, But Not Standing Still

CMS has not yet announced the next round of competitive bidding, but the Proposed Rule released in June 2025 signals major changes ahead.

What’s proposed:

New product categories: Ostomy, tracheostomy, urological supplies, CGMs, and insulin pumps may be added to the program.
Remote Item Delivery (RID) CBP: CMS may launch a nationwide or regional mail-order bidding program for high-volume items that are routinely shipped to Medicare beneficiaries.
Annual reaccreditation: DME suppliers may need to renew accreditation yearly instead of every three years.

While the final rule and bidding timeline are still pending, we are not waiting. Our Government Relations team is actively engaged, submitting comments, meeting with policymakers, and preparing resources for members.

We will not stop advocating for fair access, sustainable pricing, and patient choice. And we encourage you to:

Stay informed through our updates and webinars
Share your feedback and patient stories
Prepare your teams for potential changes in product categories and contracting
Prepare your business for the potential changes/improve operational efficiency
BE CHAMPIONS OF CHANGE!

We Will Not Stop

This is more than a rallying cry, it’s a commitment. To our members. To the patients you serve. And to the future of this industry.

Whether it’s maximizing Q4 revenue, navigating tariffs, or preparing for competitive bidding, we are here to help you lead with confidence and finish the year strong.

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