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Impact on DMEPOS Providers: The Biden Administration Announces New Actions to Lessen the Burden of Medical Debt and Increase Consumer Protection

Published in Government Relations on April 19, 2022

The White House is seeking to help lessen Americans' medical debt burden, Vice President Kamala Harris announced Monday, April 11, 2022. In its latest effort to help people deal with increased costs amid skyrocketing inflation, and with emphasis on collection practices by providers and third-party collection agencies, the White House laid out a four-point plan to help protect consumers. Officials from several federal agencies spoke of the problems of medical debt, which plagues about one-third of American adults and is the largest source of debt in collections. Being behind in bills also prompts some people to avoid seeking additional health care and can affect consumers' ability to buy homes or start small businesses. VGM has been contacted by several DMEPOS suppliers with several questions and concerns relative to their ability to waive patient co-payments in conjunction with the White House efforts to ease medical debt. VGM’s vice president of regulatory affairs Mark Higley and vice president of payer relations Craig Douglas presents a summary of the new actions, the potential affect – along with certain perils – to DMEPOS companies concerning the topics covered in this newly released memo, and offers a comprehensive procedural outline to mitigate potential risks with federal, state and private payers. Read More Here!

From Our Experts

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Preparing for Increased Audit Activity: How VGM Group and The van Halem Group Can Help The recent HHS Office of Inspector General (OIG) report on DMEPOS fraud signals that CMS is likely to increase oversight activities across the industry. The report calls for enhanced supplier enrollment screening, more aggressive medical reviews, expanded use of artificial intelligence and data analytics, greater physician order verification, and increased scrutiny of supplier ownership and billing practices.

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CMS Updates CBIC Website Bid Preparation Guidance for Round 2028 Competitive Bidding Program On August 13, 2026, CMS posted several updated and new Fact Sheets and one new FAQ to the Bid Preparation Phase page on the CBIC website. Providers interested in submitting a bid for Round 2028 can find more program details, including the estimated number of contract awards, for each category.

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