Medicare's Next Equipment Bidding Round Is Approaching. Here Is What It Covers and Why It Matters.

The Centers for Medicare and Medicaid Services highlighted preparations this week for Round 2028 of the Medicare Durable Medical Equipment, Prosthetics, Orthotics, and Supplies Competitive Bidding Program, signaling that the supplier registration and bidding window is expected to open in the coming weeks.

Under the competitive bidding program, eligible suppliers compete for Medicare contracts by submitting price bids. CMS uses those bids to establish the payment rates it will accept and to limit which suppliers are authorized to serve beneficiaries in specific geographic areas at the standard Medicare rate. Round 2028 will cover continuous glucose monitors, insulin pumps, ostomy and urological supplies, and off-the-shelf orthotic braces, among other categories.

The program has been in a gap period since 2024, during which CMS has paid suppliers outside the competitive bidding structure. Round 2028 is intended to restore price competition to these product categories. Contracts are scheduled to take effect no later than January 1, 2028, and will remain in place for a multi-year contract period.

CMS published new guidance documents on August 13, covering bid requirements, the expected number of contract awards per area, and surety bond templates that suppliers must submit with their bids. A bidder education program has been running since June.

The outcome matters directly to beneficiaries. Only suppliers that win a contract in a given service area are eligible to fill orders for competitively bid items at the Medicare payment rate. Beneficiaries who receive care from a non-contracted supplier may face higher out-of-pocket costs. Medicare enrollees who rely on continuous glucose monitors, insulin pumps, ostomy supplies, or off-the-shelf braces should ask their current supplier whether it plans to bid in Round 2028.