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CMS Releases CPI-U Adjustments for DMEPOS In 2026 And Fee Schedule Q1

Published in VGM Government Relations on December 23, 2025

The Centers for Medicare & Medicaid Services (CMS) released the annual inflation factor to be applied to DMEPOS items effective January 1, 2026, with an implementation date of January 5, 2026. The breakdown of the adjustment is dependent upon whether the serviced items are included in the competitive bidding program (CBP) or are in formerly competitive bid areas (CBAs) such as rural and non-rural.  

  • CBP items in former CBAs: +2.8%  
  • CBP items in non-CBAs: +2.7%  
  • Non-CBP items: +2.0%  

In the current environment, the DMEPOS industry welcomes any increased adjustments to the fee schedule allowables. Even though there is still some ground to cover by getting the allowables adjusted to reflect the higher costs for operational expenses and higher product costs, the increase is welcomed.  

Other Noteworthy Updates 

  • Lymphedema items 
    • Some items within this category will see a 2.7% increase. 
  • Therapeutic Shoes 
    • Updates being made to A5503 – A5507, as well as A5512, A5513, A5514. 
  • Diabetic Testing Supplies 
    • Updates to mail order diabetic testing supplies billed with the KL modifier. 
  • Oxygen Maintenance and Service (MS modifier) – 2.0% increase yielding an allowable of $89.58. 
  • Labor/Repair/Service Codes (K0739, L4205, L7520) – 2.7% increase. 

You can click here to view the CMS fee schedule for Q1 2026. 

Click here to view the announcement from CMS.

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