New documents from the Department of Health & Human Services’ (HHS) 2026 include details on how the Medicare competitive bidding program for durable medical equipment will be resumed, the American Association for Homecare (AAHomecare) said in a June 3 bulletin.
AAHomecare said the competitive bidding information was contained in the HHS Budget in Brief document that discusses the department’s 2026 fiscal-year (FY) budget request, as well as in the Justification of Estimates for Appropriations Committees for the Centers for Medicare & Medicaid Services (CMS).
“The Budget in Brief includes a mention of an FY 2026 budget item for $22 million to restart the DMEPOS competitive bidding program (CBP), while the longer CMS appropriations document shares additional detail,” the association said, adding that the appropriations document also mentions the “current gap status” of the competitive bidding program.
AAHomecare said the appropriations document indicates that CMS will restart the bidding process for the next competitive bidding round after IT systems in the Competitive Bidding Implementation Contractor’s IT environment is migrated to CMS’s cloud environment; after formal public notice and comment rule-making processes are completed; and after changes to the program are made to establish sustainable prices, save money for Medicare patients and taxpayers, and ensure that Medicare beneficiaries retain access “to quality items and services.”
The appropriations documentation also discusses “critical operational tasks” that are part of the competitive bidding process, such as bidder registration, solicitation of bids, and evaluating and screening incoming bids to, for example, check the bidder’s licensure and accreditation status.
“AAHomecare is aware of a new DME proposed rule that includes competitive bidding that has been under review at the Office of Information and Regulatory Affairs, a unit of the White House’s Office of Management and Budget, since late April,” the association said. “Our regulatory experts indicate that these types of proposed rules are normally published by July 1.”
AAHomecare said it will “continue to partner” with stakeholders and legislators “to ensure that bidding processes lead to the ‘sustainable prices’ indicated. … The association will prioritize efforts to require bidders to be properly qualified and able to stand by their bids, to ensure appropriate price-setting mechanisms and transparency throughout the process, and to limit CMS’s ability to once again cancel the bidding results if they are not satisfied with the prices established.”
