CMS proposes doubling surety bond amount for next round of competitive bidding

WASHINGTON – The Centers for Medicare & Medicaid Services (CMS) is proposing to update the surety bond amount to $100,000 for the remote-item delivery (RID) competitive bidding program (CBP).

The current amount is $50,000.

“CMS is proposing an additional change to the DMEPOS CBP so it can provide further protections for the Medicare Trust Fund and continue to lower copays for beneficiaries,” the agency states. “This change aims to deter bidders from submitting disingenuous bids.”

The change is included in the Fiscal Year 2027 Inpatient Rehabilitation Facility Prospective Payment System Proposed Rule (CMS-1845-P).

CMS says the $50,000 surety bond will remain in place for non-RID competitions.

Bidder education coming soon

The agency also says it will soon launch the first phase of its Round 2028 DMEPOS CBP bidder education initiative. This phase will inform prospective suppliers about:

• Bidding process
• Eligibility requirements
• Key program changes

Round 2028 timeline reminder

Additionally, CMS provided the following reminder about the Round 2028 timeline:

• Late spring/early summer 2026
  • CMS announces specific dates for registration and bidding.
  • CMS announces lead items for the DMEPOS CBP 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.
• No later than Jan. 1, 2028
  • Start of next round. Contracts and single payment amounts in effect.
  • Six-month transition period begins for beneficiaries to switch to contract suppliers

Additional details on program's launch

CMS also pointed suppliers to this FAQ, which includes 24 new questions/answers dated April 2, including:

• CMS states it will be phasing in RID CBPs. What/how will RID CBPs be phased in?
• Do bidders need to obtain one surety bond for a nationwide RID competitive bidding area, regardless of how many product categories they submit a bid for?
• Do bidding suppliers need to be licensed in all 50 states before submitting bids for the furnishing of items under a nationwide RID CBP?

Related coverage from HME News:

• Next round of bidding takes shape: CMS proposed new rules, remote delivery CBPs and annual reaccreditation. 
• An industry 'dehumanized': Providers say CMS ignored feedback, favors large companies.
• Will providers say no thanks to next round of CBP?