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HR1 Passes House, Advances to President Trump's Desk for Signature

Published in Government Relations on July 03, 2025

Key Provisions Affecting DMEPOS Providers: 

1. Potential Medicare Reimbursement Reductions. Under HR1, a failure to waive PAYGO requirements could trigger a mandatory 4% across-the-board cut to Medicare reimbursement rates. 

2. Medicaid Work Requirements. The bill introduces mandatory work or educational activity requirements for Medicaid recipients between the ages of 19 and 64. The Congressional Budget Office (CBO) estimates that these changes could result in millions losing Medicaid coverage over the next decade. For DMEPOS suppliers, this likely translates into reduced demand among Medicaid-enrolled patients. 

3. Wider Fiscal Implications Designed To Rein In Government Spending. HR1 includes projected reductions across multiple social programs, such as Medicaid, SNAP (Supplemental Nutrition Assistance Program), and clean energy initiatives. These budgetary shifts are intended to offset tax relief provisions and increased defense spending. For DMEPOS stakeholders, the ripple effects may include decreased state funding, tighter reimbursement policies, and greater administrative complexity. 

DMEPOS Competitive Bidding Formally Announced In Federal Register 

The Centers for Medicare & Medicaid Services (CMS) has officially released the Proposed Rule for the next round of the Durable Medical Equipment, Prosthetics, Orthotics, and Supplies (DMEPOS) Competitive Bidding Program in the Federal Register. As previewed by VGM & Associates, this rule outlines key updates that will shape the future of Medicare reimbursement for DMEPOS items. 

Public Comment Period: Make Your Voice Heard 

It is critical for DME suppliers and stakeholders to participate in the public comment period to ensure that industry perspectives are reflected in the final policy. 

1. Deadline for Comments: Comments must be received no later than 5 p.m. EDT on August 29. 

2. Reference: Please include file code CMS-1828-P in your submission. 

3. Note: CMS cannot accept comments via fax due to staffing and resource limitations. 

How to Submit Comments 

Go to the federal register proposed rule:  

Choose one of the following methods to submit your feedback: 

1. Electronically: Submit comments at Regulations.gov. Follow the instructions under the “Submit a Comment” tab.  Federal Register :: Medicare and Medicaid Programs; Calendar Year 2026 Home Health Prospective Payment System (HH PPS) Rate Update; Requirements for the HH Quality Reporting Program and the HH Value-Based Purchasing Expanded Model; Durable Medical Equipment, Prosthetics, Orthotics, and Supplies (DMEPOS) Competitive Bidding Program Updates; DMEPOS Accreditation Requirements; Provider Enrollment; and Other Medicare and Medicaid Policies 

2. By mail: Centers for Medicare & Medicaid Services Department of Health and Human Services Attention: CMS-1828-P P.O. Box 8013 Baltimore, MD 21244-8013 (Ensure timely delivery before the deadline). 

3. By express or overnight mail: Centers for Medicare & Medicaid Services Department of Health and Human Services Attention: CMS-1828-P Mail Stop C4-26-05 7500 Security Boulevard Baltimore, MD 21244-1850 

VGM Is With You Every Step Of The Way 

VGM has stood by the DMEPOS community through every round of competitive bidding—and this time is no different. We remain committed to supporting suppliers throughout this process and will continue to provide resources and guidance along the way. 

Stay tuned for more insights as the rulemaking process unfolds. 

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