CMS Makes Finalized Change to DMEPOS Competitive Bidding Program

Published in Government Relations on August 11, 2026

The Centers for Medicare and Medicaid Services (CMS) has issued the FY 2027 Inpatient Rehabilitation Facilities (IRF) Prospective Payment System (PPS) Final Rule (CMS-1845-F), increasing the DMEPOS Competitive Bidding Program’s bid surety bond amount to $100,000 (previously $50,000). 

DMEPOS providers intending to submit a Round 2028 bid are encouraged to review the bid surety requirements on the CBIC website and be on the lookout for an update from CMS regarding the registration and bidding dates. 

From the CMS Fact Sheet dated July 30, 2026: 

Finalized Change to the Durable Medical Equipment, Prosthetics, Orthotics, and Supplies (DMEPOS) Competitive Bidding Program (CBP)  

As part of the FY 2027 IRF PPS final rule, CMS finalized the update to the DMEPOS Competitive Bidding Program’s bid surety bond requirements. The final change increases the bid surety bond amount from $50,000 to $100,000 for bids submitted under a Remote Item Delivery (RID) Competitive Bidding Program (CBP) and requires only one $100,000 bid surety bond per bidding entity, regardless of how many competitions under the RID CBP it bids on. For all other competitions, the bid surety bond amount remains $50,000, and bidding entities must obtain a separate bid surety bond for each competitive bidding area. This change aims to deter bidders from submitting disingenuous bids.  

CMS has launched the first phase of its Round 2028 DMEPOS CBP bidder education initiative. This early education phase provides prospective DMEPOS suppliers with important information about the upcoming bidding process, eligibility requirements, and key program changes before the registration and bidding periods open, giving them ample time to prepare.

For more information, review the Round 2028 bidder education materials and Frequently Asked Questions, and sign up for the Competitive Bidding Implementation Contractor’s list at: www.dmecompetitivebid.com.  

Providers interested in obtaining a Competitive Bid Round 2028 bid bond are encouraged to submit a quote request to bondinfo@vgminsurance.com.

The final rule can be viewed on the Federal Register at: https://www.federalregister.gov/public-inspection/current.  

For questions regarding the CMS Competitive Bidding Program, contact Melanie Ewald at melanie.ewald@vgm.com. 

From Our Experts

Congratulations to CAMPS On This Important Legislative Victory thumbnail Congratulations to CAMPS On This Important Legislative Victory The signing of AB 1794 is another reminder of the critical role state associations play in shaping healthcare policy, removing barriers to patient care, and ensuring providers have a seat at the table when important decisions are made. Legislative successes like this do not happen by accident. They are the result of engaged members, strong advocacy efforts, and collaboration with policymakers to address real-world challenges facing providers and the patients they serve. S.247, Choices for Increased Mobility Act of 2025, Passes U.S. Senate thumbnail S.247, Choices for Increased Mobility Act of 2025, Passes U.S. Senate S.247, Choices for Increased Mobility Act of 2025 has passed in the Senate through unanimous consent. It now heads to the President to be signed into law. Introduced in the Senate by Sen. Tammy Duckworth (D-IL), The Choices for Increased Mobility Act of 2025 would... August Recess Recap: Building Relationships, Advancing Advocacy thumbnail August Recess Recap: Building Relationships, Advancing Advocacy As Congress worked through the August recess, the VGM Government Relations team remained actively engaged in securing meetings and building relationships with legislators, candidates, and key congressional staff across the country. This summer, the team made a strategic decision to focus getting a strong balance between Republican and Democratic offices, recognizing the importance of broadening support for DMEPOS priorities and ensuring policymakers from both parties understand the challenges.. Introducing Patient Voices: Access to HME Matters thumbnail Introducing Patient Voices: Access to HME Matters The VGM Government Relations team is excited to announce Patient Voices: Access to HME Matters, a new way for patients, providers, vendors, caregivers, and industry partners to share their experiences with home medical equipment. Every story matters. AAHomecare Survey Results of RID Program thumbnail AAHomecare Survey Results of RID Program Thank you to AAHomecare for initiating this important survey demonstrating the significant risks to the DMEPOS industry should Remote Item Delivery Competitive Bid Program (RID CBP) Round 2028 move forward as is. VGM Group is proud to support the survey efforts to maximize provider participation. See below for the survey summary and analysis. Competitive Bidding Update: NPEast and NPWest Updating Licensure Requirement Information for Competitive Bidding Product Categories thumbnail Competitive Bidding Update: NPEast and NPWest Updating Licensure Requirement Information for Competitive Bidding Product Categories Per the Remote Item Delivery Competitive Bidding Program (RID CBP) Round 2028 requirements, bidders must meet all business and product category licensure requirements across every state, the District of Columbia, and the U.S. territories to be eligible to be a contract winner. New CMS Nationwide Probationary Prior Authorization Requirement for Newly Enrolled Suppliers of Certain DMEPOS Items thumbnail New CMS Nationwide Probationary Prior Authorization Requirement for Newly Enrolled Suppliers of Certain DMEPOS Items On Sept. 2, 2026, CMS introduced the Probationary Prior Authorization (PPA) program that will place newly enrolled DMEPOS Suppliers and those undergoing 100% change in ownership on a one-year probationary period. Effective Oct. 15, impacted suppliers will be required to submit a prior authorization request for specific HCPCS codes. OIG Report Signals Increased Fraud Oversight for DMEPOS Suppliers thumbnail OIG Report Signals Increased Fraud Oversight for DMEPOS Suppliers The HHS Office of Inspector General (OIG) recently released a white paper examining ongoing Medicare fraud involving durable medical equipment, prosthetics, orthotics, and supplies (DMEPOS).