Durable Medical Equipment Competitive Bidding Program

Medicare is phasing in a new competitive bidding program in some areas of the country. This program changes the amount Medicare pays suppliers for certain durable medical equipment, prosthetics, orthotics, and supplies (DMEPOS) and changes who can supply these items. As of July 1, 2013, this program will be in 99 areas of the country.

What's the Durable Medical Equipment (DME) Competitive Bidding Program?

The Competitive Bidding Program replaces the outdated prices Medicare has been paying with lower, more accurate prices. Under this program, suppliers submit bids to provide certain medical equipment and supplies at a lower price than what Medicare now pays for these items. Medicare uses these bids to set the amount it will pay for those equipment and supplies under the competitive bidding program. Qualified, accredited suppliers with winning bids are chosen as Medicare-contract suppliers.

The program:

  • Helps you and Medicare save money
  • Ensures that you have access to quality medical equipment, supplies, and services from suppliers you can trust
  • Helps limit fraud and abuse in the Medicare Program

Important: The program doesn't affect which doctors you can use.


The Competitive Bidding Program applies to Original Medicare only. If you’re enrolled in a Medicare Advantage Plan (like an HMO or PPO), your plan will let you know if your supplier is changing. If you’re not sure, contact your plan.

More about the DME Competitive Bidding Program