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Small DMEPOS Suppliers Gain New Path to Compete Through Network Bidding

Published in Government Relations on May 05, 2026

On April 2, the Centers for Medicare and Medicaid Services (CMS) issued a new FAQ, inclusive of 24 new questions and answers, on the next round of DMEPOS Competitive Bidding Program (CBP) via CBIC, the official information source for bidders and focal point for bidder education.

This most recent update from CMS provides the opportunity for small suppliers to form a network in order to bid in the next round. These networks must adhere to the CMS competitive bidding rules outlined in 42 CFR § 414.418.

To further support small suppliers, VGM has created a forum for members interested in joining a network to connect and explore the opportunity to form a network. Click here to sign up.

Be sure to join VGM's Melanie Ewald and Kelly Grahovac at the VGM Heartland Conference, June 8-10, 2026, for their session on small provider strategies.

CMS FAQ on Network Bid Opportunities

“If individual small suppliers cannot independently meet all of the state licensure requirements for the remote item delivery nationwide (RID) competitive bidding area (CBA), such as the requirement for a physical location in a specific state or area, can a group of individual small suppliers (suppliers with annual gross revenues of $3.5 million or less, including both Medicare and non-Medicare revenue) form a network that meets the requirements under 42 CFR § 414.418, and be awarded a contract under the nationwide RID CBA as long as the network of small suppliers can collectively meet all requirements for the nationwide RID CBA?

Yes, pursuant to 42 CFR § 414.418, small suppliers unable to independently furnish all of the items in the product category to Medicare beneficiaries throughout the entire geographic area of a CBA, have the option of joining a network. To be awarded a contract, all network member locations included on a bid must together meet all applicable enrollment requirements, including accreditation and licensing.”

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