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

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. NAAOP and OPGA Co-Host Second Annual In-Person Legislative Fly-In thumbnail NAAOP and OPGA Co-Host Second Annual In-Person Legislative Fly-In Last week, over 30 stakeholders, advocates, and leaders from around the O&P profession convened at the offices of Powers Pyles Sutter & Verville PC in Washington, D.C., as part of the National Association for the Advancement of Orthotics and Prosthetics' (NAAOP) second annual in-person legislative fly-in. Round 2028 Updates for Competitive Bidding & Interoperability Rule FAQ thumbnail Round 2028 Updates for Competitive Bidding & Interoperability Rule FAQ On Nov. 28, 2025, the Centers for Medicare & Medicaid Services (CMS) announced plans for Round 2028 of the Durable Medical Equipment, Prosthetics, Orthotics, and Supplies (DMEPOS) Competitive Bidding Program (CBP). If you plan to bid, the time to prepare is now... What DMEPOS Providers Need to Know About H.R. 3514: Improving Seniors' Timely Access to Care Act thumbnail What DMEPOS Providers Need to Know About H.R. 3514: Improving Seniors' Timely Access to Care Act Medicare Advantage prior authorization continues to be one of the most significant operational and patient care challenges facing DMEPOS suppliers. A new bipartisan bill, H.R. 3514: Improving Seniors' Timely Access to Care Act, seeks to increase transparency, accountability, and oversight of Medicare Advantage prior authorization practices. This bill passed out of Ways & Means markup by a unanimous vote (42-0) on July 15...