The DMEPOS Competitive Bid Program (CBP) And The New Remote Item Delivery Competitive Bidding Program – What Suppliers Need To Know

Published in Government Relations on December 17, 2025

A major development to come out of the CMS DMEPOS/Home Health Final Rule is the creation of a new Remote Item Delivery (RID) competitive bid program (CBP). This article provides the key items DMEPOS suppliers need to be aware of regarding this significant development in the competitive bidding program. 

What is it?  

CMS defines the “Remote item delivery competitive bidding program” to mean “a competitive bidding program wherein contract suppliers are responsible for furnishing remote item delivery items under a product category to all Medicare beneficiaries regardless of where they live in the competitive bid area (CBA).” 

What is a Remote Item Delivery Item?  

“Remote item delivery item” is “an item falling under a remote item delivery competitive bidding program that may be shipped or delivered to a beneficiary’s home, regardless of the method of delivery, or picked up at a local pharmacy or supplier storefront if the beneficiary or caregiver for the beneficiary chooses to pick the item up in person.” 

What does a RID CBP cover?  

CMS clarified that the nationwide RID CBP as: “The CBA could be one nationwide CBA that includes all areas (all states, territories, and the District of Columbia) or a CBA covering a specific region of the country.” The RID CBP is limited to items that are typically provided on a national mail order basis, meaning the items may be shipped or delivered to patient’s home, or the item could be picked up locally at a contracted supplier. 

What does this mean for suppliers?  

Only contracted suppliers can provide items included in the nationwide RID CBP. Contracted suppliers will be responsible “for furnishing the items on either a mail order or non-mail order basis under the product category to all Medicare beneficiaries, regardless of where they live in the CBA.” For a beneficiary that resides in the CBA to receive an item at a local store, the supplier will need to be a contract supplier or a subcontractor of the contract supplier. However, suppliers are not required to have a local have a physical location near a beneficiary. Further, contract suppliers awarded for each product category will be responsible for furnishing all items under the product category to all Medicare beneficiaries regardless of where they live in the CBA. 

What do I need to know about the RID CBP CBAs? 

CMS has stated that the RID CBP will be a nationwide program and may be either one national CBA or multiple regional CBAs. CMS has also reserved the right to phase in the RID CBP using a small region. Regardless of the size of the RID CBA, to be eligible for a contract, suppliers will be required to meet specific, detailed DMEPOS supplier and quality standards, and applicable State and Federal licensing and brick and mortar location requirements, where applicable, and be accredited by an approved independent accrediting organization in every state the CBA covers. 

Still have questions?  

Find the Final Rule, CMS Fact Sheet, and other resources on VGM’s Competitive Bidding Resource Page and van Halem Group - Competitive Bidding Program

From Our Experts

Introducing Patient Voices: Access to HME Matters thumbnail Introducing Patient Voices: Access to HME Matters The VGM Government Relations team is excited to announce Patient Voices: Access to HME Matters, a new way for patients, providers, vendors, caregivers, and industry partners to share their experiences with home medical equipment. Every story matters. AAHomecare Survey Results of RID Program thumbnail AAHomecare Survey Results of RID Program Thank you to AAHomecare for initiating this important survey demonstrating the significant risks to the DMEPOS industry should Remote Item Delivery Competitive Bid Program (RID CBP) Round 2028 move forward as is. VGM Group is proud to support the survey efforts to maximize provider participation. See below for the survey summary and analysis. Competitive Bidding Update: NPEast and NPWest Updating Licensure Requirement Information for Competitive Bidding Product Categories thumbnail Competitive Bidding Update: NPEast and NPWest Updating Licensure Requirement Information for Competitive Bidding Product Categories Per the Remote Item Delivery Competitive Bidding Program (RID CBP) Round 2028 requirements, bidders must meet all business and product category licensure requirements across every state, the District of Columbia, and the U.S. territories to be eligible to be a contract winner. New CMS Nationwide Probationary Prior Authorization Requirement for Newly Enrolled Suppliers of Certain DMEPOS Items thumbnail New CMS Nationwide Probationary Prior Authorization Requirement for Newly Enrolled Suppliers of Certain DMEPOS Items On Sept. 2, 2026, CMS introduced the Probationary Prior Authorization (PPA) program that will place newly enrolled DMEPOS Suppliers and those undergoing 100% change in ownership on a one-year probationary period. Effective Oct. 15, impacted suppliers will be required to submit a prior authorization request for specific HCPCS codes. 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.