Competitive Bidding

The DMEPOS competitive bidding program is designed to help lower out-of-pocket costs and improve access to certain high-quality DMEPOS products for Medicare beneficiaries. The competitive bidding program was mandated through the Medicare Prescription Drug, Improvement, and Modernization Act of 2003 through a statute that requires Medicare to replace its fee schedule with a competitive bid process.

The competitive bid payment amounts are determined by using bids submitted by DMEPOS suppliers. The intent of the competitive bidding program is to set more appropriate payment amounts for DMEPOS items, which will result in reduced beneficiary out-of-pocket expenses and savings to taxpayers and the Medicare program.

To participate in the Medicare DMEPOS competitive bidding program, suppliers must meet CMS quality standards (PDF), be accredited by a CMS-approved accreditation organization, meet licensing requirements, and, if applicable, get bonded.

Learn More About Competitive Bidding

Information about the competitive bidding changes frequently. For up-to-date information, including the bidding timeline and rules, user guides, frequently asked questions, and policy fact sheets and checklists, please visit CMS’ Web site or the Web site of the Competitive Bidding Implementation Contactor (CBIC).