Legislative Momentum in the HME Industry: Key Updates & Action Items

Published in Government Relations on October 16, 2025

The past few months have seen a surge of legislative activity in the home medical equipment sector, with several key developments shaping policy and advocacy efforts across the industry. From new bills introduced in Congress to formal comment submissions and stakeholder mobilization, these events reflect growing momentum around critical issues affecting providers and patients alike. This article offers a comprehensive recap of recent actions and outlines important next steps for those engaged in the HME community.

Senate Bill S.2951 introduced 

The U.S. Senate has introduced S.2951, the companion bill to H.R. 2005, known as the DMEPOS Relief Act of 2025, aimed at adjusting Medicare payment rates for durable medical equipment previously included in Round 2021 of the Competitive Bidding Program. Sponsored by Senator James Lankford (R-OK) and co-sponsored by Senator Maggie Hassan (D-NH), this bipartisan legislation reflects the strong advocacy efforts of OMEPA and HOMES. This bipartisan bill seeks to restore fair reimbursement and protect access for seniors and individuals with disabilities. Referring to the Senate Finance Committee, the bill has gained momentum thanks to advocacy from industry groups like VGM Group and AAHomecare. Stakeholders are encouraged to contact their Senators in support of the legislation, which could significantly benefit HME providers and patients nationwide.

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Click here to reach out to your senator asking for support S.2951

Congressional Sign-on Letter Regarding Competitive Bidding Program 

A Congressional Sign-on Letter circulated in the House of Representatives over the past couple weeks, led by Rep. Neal Dunn (R-FL) and Rep. 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.The letter closed on Friday, Oct. 10, 2025, with 26 supporters.  

Click here to see the final letter.

232 National Security Investigation on Medical Imports

Formal comments were submitted by VGM to the U.S. Department of Commerce regarding the Section 232 National Security Investigation on medical imports, urging caution around potential trade restrictions. While supporting efforts to strengthen domestic supply chains, VGM highlighted risks such as increased costs from tariffs, supply chain disruptions, limited domestic manufacturing capacity, and negative impacts on patient care. They emphasized the need for a balanced approach that protects national interests without harming the HME industry or the patients it serves.

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Continued Support of H.R. 2005 DMEPOS Relief Bill 

The last few months efforts have brought more support of H.R. 2005, the DMEPOS Relief Act. This legislation would provide adjustments to Medicare reimbursement for DME items that were formerly included in Round 2021 of the Competitive Bidding Program. 

Click here to reach out to your representative to ask for their support of H.R. 2005

Government Shutdown and Telehealth Flexibilities Expire  

The U.S. senate is still in a stalemate with negotiations to open the government back up. Democrat and Republican members of the Senate were unable to agree on terms in passing a continuing resolution (CR) ahead of the October 1 deadline, resulting in a government shutdown. October 1 also brought the expiration of telehealth flexibilities, reverting to pre-pandemic regulations.  

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VGM will continue to monitor legislative developments and provide timely updates to keep stakeholders informed and empowered. 

From Our Experts

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). Preparing for Increased Audit Activity: How VGM Group and The van Halem Group Can Help thumbnail 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. CMS Releases Critical Updates On The Medicare Supplier Enrollment Moratorium And Round 2028 Competitive Bidding Program thumbnail CMS Releases Critical Updates On The Medicare Supplier Enrollment Moratorium And Round 2028 Competitive Bidding Program See CMS' notice on the Medicare Supplier Enrollment Moratorium below: Medicare's DMEPOS Supplier Enrollment Moratorium Has Expired | Action Required for Round 2028 Bidders This message is to inform you that the 6-month temporary moratorium on accepting Medicare supplier enrollment applications, which became effective on February 27, 2026, has now expired as of August 27, 2026. CMS Updates CBIC Website Bid Preparation Guidance for Round 2028 Competitive Bidding Program thumbnail 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. Important: HME Supplier Survey on Round 2028 Competitive Bidding Impact thumbnail Important: HME Supplier Survey on Round 2028 Competitive Bidding Impact AAHomecare is conducting a brief survey to help quantify the potential impact that Medicare's Remote Item Delivery (RID) model of Competitive Bidding would have on HME suppliers providing continuous glucose monitors (CGMs), insulin pumps, ostomy supplies, and/or urological supplies. Survey findings will be used to inform discussions with the White House, the Centers for Medicare and Medicaid Services (CMS), and Congress about the potential effects on supplier businesses, jobs, and patient... CMS Makes Finalized Change to DMEPOS Competitive Bidding Program thumbnail CMS Makes Finalized Change to DMEPOS Competitive Bidding Program 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).... VGM Government Relations Launches State Payer Resource Hub for DMEPOS Providers thumbnail VGM Government Relations Launches State Payer Resource Hub for DMEPOS Providers This resource brings together key information frequently used by DMEPOS providers. Kentucky Governor Announces Reprieve from Previously Announced Kentucky Medicaid 4% Rate Cut thumbnail Kentucky Governor Announces Reprieve from Previously Announced Kentucky Medicaid 4% Rate Cut The administration expects the surplus funding to sustain current reimbursement levels through June 2027.