Medicare DME competitive bidding explained (2026)

3 min read By HHZ Editorial Next review

Medicare's DMEPOS Competitive Bidding Program sets payment amounts and limits which suppliers can furnish certain items in bidding areas. CMS's next round, targeted to start no later than January 1, 2028, covers only nationwide Remote Item Delivery categories such as CGMs, insulin pumps, urological and ostomy supplies and off-the-shelf braces. CPAP and home oxygen are not in it. Contract suppliers must accept assignment, and you can get repairs to owned equipment from any supplier. Source: CMS fact sheet updated 8 December 2025.

Source: CMS, DMEPOS Competitive Bidding Program – Updates and Important Information, fact sheet updated 8 December 2025, summarizing the CY 2026 Home Health Prospective Payment System final rule (CMS-1828-F). Dates below are CMS’s target dates.

Next-round timeline

When (CMS target)What happens
December 2025Pre-bidding supplier awareness program begins
Late spring / early summer 2026Registration and bidding dates, lead items and number of contracts announced
Late summer / early fall 2026Bidder registration; bid window opens
Late summer / early fall 2027Contracts awarded; single payment amounts announced; beneficiary education begins
No later than January 1, 2028Contracts and single payment amounts take effect; six-month transition begins

What’s in the next round

IncludedNot listed
Class II continuous glucose monitors and insulin pumpsCPAP devices and supplies
Urological supplies (not hydrophilic catheters)Home oxygen equipment
Ostomy suppliesBilevel devices
Hydrophilic urinary cathetersHospital beds, wheelchairs
Off-the-shelf back, knee and upper-extremity braces

CMS says all next-round categories are in the nationwide Remote Item Delivery program. The “not listed” column reflects only what’s absent from CMS’s list; it isn’t a CMS statement about future rounds.

What changes in how prices are set

ChangeDetail (CMS)
Single payment amountsNow the 75th percentile of winning bids, not the maximum winning bid
Annual updatesAdjusted in years 2 and 3 by CPI-U, capped at the unadjusted fee schedule or 110% of the adjusted fee schedule
Number of contracts125% of the suppliers furnishing at least 3% of national allowed services for the lead item
Small suppliersExtra contracts may be offered toward a 30% small-supplier target

Your protections

  • Assignment: contract suppliers must submit claims on an assignment basis. CMS notes that non-participating suppliers in non-bidding areas aren’t required to accept assignment and “can charge any amount”. See DME assignment explained.
  • Brand or delivery mode: if your doctor prescribes a specific brand or delivery mode to avoid an adverse outcome, the contract supplier must provide it, help you find another contract supplier, or work with your doctor on an acceptable alternative.
  • Transition: if your old supplier doesn’t transfer your documentation, contract suppliers get six months to obtain new orders.
  • Repairs: you can get repairs to equipment you own from contract or non-contract suppliers.
  • Complaints: CMS has a Competitive Acquisition Ombudsman and a formal complaint process.

What it means if you use CPAP or oxygen

For now, nothing changes from this round. Your costs still follow Part B rules: 20% of the Medicare-approved amount after the Part B deductible, if your supplier accepts assignment (Medicare.gov). See Medicare CPAP rules, Medicare oxygen coverage and switching oxygen suppliers.

Verdict

The next competitive bidding round, targeted for 2028, focuses on mail-order supplies and braces, not CPAP or oxygen. If you use a CGM, insulin pump or ostomy or urological supplies, expect a switch to national contract suppliers. Whatever you use, the assignment and brand protections are worth knowing.

Related: Medigap and DME costs, Medicare Advantage vs Original Medicare for DME.

Frequently asked questions

Is CPAP part of Medicare competitive bidding in 2026?
Not in the next round. CMS's fact sheet (updated 8 December 2025) lists the next round's product categories as CGMs and insulin pumps, urological supplies, ostomy supplies, hydrophilic urinary catheters and off-the-shelf back, knee and upper-extremity braces. CPAP and oxygen aren't on the list.
When does the next competitive bidding round start?
CMS's target is no later than January 1, 2028, with the bid window in late summer or early fall 2026 and contracts awarded in late summer or early fall 2027. CMS calls these target dates.
What is Remote Item Delivery?
A nationwide competitive bidding program for items usually furnished by mail. All of the next round's categories are in it. Only contract suppliers can furnish those items under Part B, by delivery or pickup at a contract supplier's local storefront or pharmacy.
If I'm in a competitive bidding area, can I still get repairs?
Yes. CMS says beneficiaries in a competitive bidding area can get repairs to equipment they own from either a contract or a non-contract supplier.
Do contract suppliers have to accept assignment?
Yes. CMS says contract suppliers must submit claims for competitively bid items on an assignment basis.