Senate Narrowly Passes HR1, Sending It Back to House for Final Approval

Published in Government Relations on July 01, 2025

President Donald Trump’s sweeping legislative package, formally titled the One Big, Beautiful Bill Act, now referred to as HR1., cleared the Senate today in a dramatic 51–50 vote, with Vice President JD Vance casting the tie-breaking vote. The bill now returns to the House, where lawmakers must decide whether to adopt the Senate’s revised version or negotiate further changes before it can reach the president’s desk. 

Among the bill’s many provisions, several have significant implications for the DMEPOS industry, particularly through changes to Medicare and Medicaid. 

Key Provisions Affecting the DMEPOS 

  1. Medicare Reimbursement Cuts. The legislation includes a 4% across-the-board cut to Medicare reimbursement rates, including those for home medical equipment (HME). These reductions are tied to the PAYGO (Pay-As-You-Go) rules, which automatically trigger spending cuts when legislation increases the federal deficit. This could place additional financial strain on providers already operating on thin margins. 
  2. Medicaid Overhaul. The bill imposes new work or education requirements for Medicaid enrollees aged 19–64. According to the Congressional Budget Office, these changes could result in millions losing coverage over the next decade. For the DMEPOS industry, this may translate into a decline in demand for equipment and services among Medicaid beneficiaries. 
  3. Broader Financial Impact. The bill’s overarching goal is to curb federal healthcare spending, with projected cuts to Medicaid, SNAP, and clean energy programs helping offset tax reductions and defense spending increases. For DMEPOS providers, this could mean tighter state budgets, reduced reimbursement rates, and increased administrative burdens. 

These policy shifts could potentially present serious challenges for both providers and patients who depend on DMEPOS products for daily living and chronic care management. Providers may need to reassess their business models, while patients—especially those in vulnerable populations—could face new barriers to accessing essential equipment. 

As the bill heads back to the House, VGM and other industry stakeholders are closely watching for potential amendments or compromises that could soften the impact on healthcare. 

From Our Experts

State Medicaid Work Requirements: The Impact on Medicaid beneficiaries and their DME Suppliers thumbnail State Medicaid Work Requirements: The Impact on Medicaid beneficiaries and their DME Suppliers Pursuant to the work and community engagement requirements included in H.R.1, the Centers for Medicare & Medicaid Services (CMS) has issued an interim final rule mandating a framework for Medicaid departments to follow when evaluating Medicaid beneficiary eligibility. Beginning no later than January 1, 2027, states must require certain adult Medicaid enrollees to demonstrate at least 80 hours per month of qualifying activity, which may include employment, education, or community... North Carolina Medicaid Rate Floor Extended Through 2029 thumbnail North Carolina Medicaid Rate Floor Extended Through 2029 Earlier this year, it was announced that the North Carolina General Assembly has approved the state budget, securing an additional full two-year extension of the Medicaid fee schedule floor. This protection will now remain in effect until June 30, 2029, guaranteeing that reimbursement rates will continue to be set at 100% of the lesser of the supplier's usual and customary rate or the maximum allowable Medicaid fee-for-service rate. Healthcare Coalition Urges Congress to Advance Supplemental Oxygen Reform thumbnail Healthcare Coalition Urges Congress to Advance Supplemental Oxygen Reform Washington, D.C. — A broad coalition of suppliers, manufacturers, clinicians, and patient advocates is calling on Congress to advance the Supplemental Oxygen Access Reform (SOAR) Act (H.R. 2902 / S. 1406) to protect patient access to life-sustaining oxygen therapy. Summer Advocacy Campaign-Make Your Voice Heard thumbnail Summer Advocacy Campaign-Make Your Voice Heard Summer is the perfect time to connect with your legislators while they are back in their home states and districts. Whether you're building a new relationship or strengthening an existing one, meeting with elected officials is one of the most effective ways to advance policies that protect patient access to home medical equipment and services. Wrapping Up a Successful VGM Heartland Conference & State Leader Summit thumbnail Wrapping Up a Successful VGM Heartland Conference & State Leader Summit One of our busiest and without a doubt, one of our favorite weeks of the year is the VGM Heartland Conference. This year kicked off with a special opportunity to bring together DME state association leaders from across the country for a dedicated pre-conference State Leader Summit. The focus was simple but impactful: collaboration, idea sharing, and real conversations about the challenges and opportunities facing our industry today. CMS Announces Phase 1: Bid Preparation for Round 2028 Competitive Bidding Program thumbnail CMS Announces Phase 1: Bid Preparation for Round 2028 Competitive Bidding Program Be sure to review all materials if you are considering a bid submission for Round 2028. CRT Bill H.R. 1703 Advances Through Full Energy & Commerce Committee thumbnail CRT Bill H.R. 1703 Advances Through Full Energy & Commerce Committee Earlier this week, we shared that H.R. 1703 advanced through the House Energy & Commerce Health Subcommittee. We are pleased to report that the bill has continued to gain momentum and has now successfully passed out of the full Energy & Commerce Committee unanimously following today's markup. Important Update: Prior Auth Exemption Process – Deadline Extended to May 26, 2026 thumbnail Important Update: Prior Auth Exemption Process – Deadline Extended to May 26, 2026 CMS has just announced that the deadline to opt out of the prior authorization exemption and continue submitting prior authorization requests has been extended to Tuesday, May 26. This extension only applies to suppliers that received a letter from the DME MACs in early March regarding their prior authorization exemption status.