Competitive Bidding

Some of the significant changes to the competitive bidding program that will be implemented in the next round include:

• Termination clause for DMEPOS competitive bidding contracts. During a public health emergency, CMS may terminate competitive bidding contracts to quickly expand access to beneficiaries.
• Calculation of single payment amounts (SPAs) will be made using the 75^th percentile of winning bids rather than the maximum winning bid.
• A remote item delivery (RID) process will be implemented for multiple product categories in the 2028 competitive bid program. This will include OTS knee, OTS spinal, and OTS upper extremity orthoses that are selected for inclusion in competitive bidding. The RID process will limit the number of contracts awarded to a handful of winning bidders who will provide items on a national basis mostly through mail order delivery.
• New limits on bid amounts. For OTS orthoses bid limits may not exceed the average 2026 Medicare fee schedule amount.
• A reduction in the financial reporting requirements for providers electing to participate in DMEPOS competitive bidding. Bidders will now only have to submit a business credit report with a numerical credit score or rating.
• Modernization of CBP Information Technology Systems. All the bidding-related information technology systems have been consolidated into one CMS’ DMEPOS CBP secure portal. Previously, bidders used two independent portals.
• Streamlining the evaluation and notification processes for missing covered document(s). CMS will only determine if a bidding entity had a missing covered document by the close of the bid window.
• New surety bond requirements. Bidders will be required to obtain a bid surety bond in the amount of $50,000 for each CBA in which they elect to submit a bid. Bid surety bonds are designed to prevent bidders from submitting artificially low bids and then refusing to award a contract.
• Tribal exemption from DMEPOS Competitive Bidding. Tribal owned suppliers will not have to participate in competitive bidding to provide items to American Indians/Alaska Natives that reside in a competitive bidding area.
• Termination clause for DMEPOS competitive bidding contracts. During a public health emergency, CMS may terminate competitive bidding contracts to quickly expand access to beneficiaries.

CMS has announced the following tentative/targeted timeline for the next CBP round:

December 2025

• CMS begins pre-bidding supplier awareness program

Late Spring/Early Summer 2026

• CMS announces specific dates for registration and bidding
• CMS announces lead items for the OTS product categories and number of contracts to award for each product category
• CMS begins bidder education program

Late Summer/Early Fall 2026

• Bidder registration period to obtain user IDs and passwords begins
• Bid window opens

Late Summer/Early Fall 2027

• Contracts awarded and single payment amounts announced
• Beneficiary education begins

 January 1, 2028

Start of Next Round – Contracts and single payment amounts (SPAs) in effect