CMS Releases CPI-U Adjustments For DMEPOS In 2025 And Fee Schedule Q1

Published in Government Relations on December 16, 2024

CMS released the annual inflation factor to be applied to DMEPOS items effective Jan. 1, 2025, with an implementation date of Jan. 6, 2025. 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: +2.9%  
  • CBP items in non-CBAs: +3%  
  • Non-CBP items: +2.4%  

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 3% 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)  
    • 2.4% increase yielding an allowable of $87.82. 
  • Labor/Repair/Service Codes (K0739, L4205, L7520)  
    • 3% increase. 

CMS has released the DMEPOS fee schedule for Q1 2025. The PDAC will get their updates completed soon. The meantime the allowables can be found using this link

Support DME Legislation as the 118th Congress Concludes  

As the 118th Congress draws to a close, we urgently need your help. Congressional negotiations are currently underway to determine the scope of end-of-year health and budget legislation. We are optimistic that the DME Legislation (H.R. 5555 and S. 1294) will be included in the final legislative package, but your support is crucial to ensure this happens!  

What You Can Do

Please reach out to your legislator’s health staffer in both the Senate and the House, either by phone or email, and urge them to “support the inclusion of H.R. 5555 and/or S. 1294 in any end-of-year package.” You can easily send a message by clicking on this link: Action Center | VGM & Associates. You are able to edit the message and add personal reasons why this legislation is important to your customers, your business, and all users of DME.  

Thank you for being the voice of the DME industry! Your efforts are vital in getting this legislation across the finish line.  

From Our Experts

Senate Introduces Companion Bill to H.R. 2005: The DME Relief Act Gains Bipartisan Momentum thumbnail Senate Introduces Companion Bill to H.R. 2005: The DME Relief Act Gains Bipartisan Momentum In a significant development for the durable medical equipment (DME) industry and Medicare beneficiaries, the U.S. Senate has introduced S.2951, the companion legislation to H.R. 2005, known as the DMEPOS Relief Act of 2025. The Senate bill is being led by Senator James Lankford (R-OK) and has gained bipartisan support with Senator Maggie Hassan (D-NH) joining as a co-sponsor. The Government Has Shut Down... How Did We Get Here and What Does it Mean for Providers? thumbnail The Government Has Shut Down... How Did We Get Here and What Does it Mean for Providers? As expected, Democrats and Republican members of the Senate was unable to agree on terms in passing a continuing resolution (CR) ahead of the October 1st deadline, resulting in a government shutdown. But how did we get here? Take Action Today: Urge Congress To Oppose DMEPOS Bidding Expansion! thumbnail Take Action Today: Urge Congress To Oppose DMEPOS Bidding Expansion! A critical Congressional Sign-On Letter is now circulating in the House of Representatives, led by Reps. Neal Dunn (R-FL) and Greg Murphy (R-NC). This bipartisan letter calls on CMS to stop the proposed expansion of the durable medical equipment, prosthetics, orthotics, and supplies (DMEPOS) Competitive Bidding Program to include ostomy and urological supplies. Potential Government Shutdown and Telehealth Flexibilities Set to Expire thumbnail Potential Government Shutdown and Telehealth Flexibilities Set to Expire September 30 represents an important date for HME providers for two reasons: 1) The potential of a government shutdown and how that affects HHS and CMS, and 2) the expiration of Telehealth Flexibilities unless a Continuing Resolution (CR) is agreed upon in time. Meet The Candidates: Senate Hopeful Josh Turek Visits VGM Group To Champion Accessibility & Advocacy thumbnail Meet The Candidates: Senate Hopeful Josh Turek Visits VGM Group To Champion Accessibility & Advocacy Waterloo, IA — On Monday, VGM Group hosted the first of our “Meet The Candidate” forums by welcoming Iowa State Representative Josh Turek, a Democratic candidate for the U.S. Senate seat soon to be vacated by Senator Joni Ernst. Advocacy In Action: VGM Group, NCART, & Industry Leaders Rally In D.C. To Defend CRT & HME Access thumbnail Advocacy In Action: VGM Group, NCART, & Industry Leaders Rally In D.C. To Defend CRT & HME Access Washington, D.C. – September 2025 — A powerful few days of advocacy wrapped up in the nation's capital as representatives from VGM Group, NCART, AAHomecare, and other key stakeholders in the Complex Rehab Technology (CRT) and Home Medical Equipment (HME) industries met with lawmakers to address urgent policy concerns. Igniting Champions Of Change During August Recess thumbnail Igniting Champions Of Change During August Recess This August recess, DME suppliers across the country seized the opportunity to engage with lawmakers and advocate for critical DMEPOS legislation. Their efforts are helping to build momentum and expand the network of congressional supporters. You Got The Contract! ...Now What?! Part 3: Contract Implementation thumbnail You Got The Contract! ...Now What?! Part 3: Contract Implementation Contract Implementation: Turning Agreements Into Revenue  Securing a contract is worth celebrating—but what happens next is just as critical. Do you have a structured process for implementation, or does the contract sit in your inbox waiting for an issue to arise? A robust implementation workflow is essential to ensure accurate and timely reimbursement and avoid preventable denials.