After a substantial COVID-19-related pause in Medicare Part B’s Durable Medical Equipment, Prosthetics, Orthotics, and Supplies (DMEPOS) Competitive Bidding Program (CBP) — a process which saved Part B $3.1 billion between 2010–2015 — the Centers for Medicare and Medicaid Services (CMS) has yet to set a specific timeline for the next round of bidding in 2024. In a new insight, Director of Health Care Policy Laura Hobbs examines how DEMOS CBP works and considers the potential costs of a continued delay.

Hobbs concludes:

Earlier DMEPOS CBP rounds have successfully demonstrated the power of market competition to meaningfully reduce Medicare costs. For the next round of bidding to begin, CMS is expected to complete an internal review before commencing the formal notice and comment rule making process. This internal review should be swift to minimize the length of the temporary gap period.

Policymakers should consider how competitive bidding in other areas of Medicare could reduce costs and maintain quality, allowing private entities to offer their best price rather than limiting market competition, either through price controls or artificially high fee schedules.

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