Glossary / Competitive bidding
Competitive bidding Medicare DME termCompetitive bidding
The Medicare program that awards DMEPOS contracts by bid in designated areas; no contracts are in effect during the current gap, and Round 2028 is coming.
The DMEPOS Competitive Bidding Program (CBP) was created by the Medicare Prescription Drug, Improvement, and Modernization Act of 2003. In designated competitive bidding areas, suppliers submit bids for product categories; CMS awards contracts to qualifying bidders based on enrollment eligibility, financial stability, and bid price, and pays a single payment amount for each item. Contract suppliers are generally the only ones paid for those items in that area.
The last active round, Round 2021, covered only off-the-shelf back and knee braces, and its contracts expired December 31, 2023. Since January 1, 2024 the program has been in a temporary gap period: no competitive bidding contracts are in effect and Medicare pays adjusted fee schedule amounts, so any enrolled supplier can bill.
On November 28, 2025, CMS announced Round 2028. Per the CMS timeline, supplier awareness began in June 2026, product categories and bidding dates were to be announced in summer 2026, registration and the bid window open in late fall 2026, contracts and single payment amounts are announced in late summer or early fall 2027, and Round 2028 starts no later than January 1, 2028.
Common questions
Does competitive bidding affect me today?
Not on contracts or pricing. During the gap period there are no contract suppliers and Medicare pays adjusted fee schedule rates. Documentation and prior authorization rules apply as usual.
What should I do to prepare for Round 2028?
Watch the Competitive Bidding Implementation Contractor site for the product categories and bid window, and make sure every location you might bid with is enrolled, licensed, and accredited well before the window opens.
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Sources: CMS: DMEPOS Competitive Bidding · CBIC: Round 2028 Timeline . Definitions summarize public Medicare policy and are not legal or billing advice.
More terms
- ADR — Additional Documentation Request
- Prior authorization
- Affirmation and non-affirmation
- UTN — Unique Tracking Number
- SWO — Standard Written Order
- Face-to-face encounter
- DME MAC — Durable Medical Equipment Medicare Administrative Contractor
- Jurisdiction
- PTAN — Provider Transaction Access Number
- NPI — National Provider Identifier
- MBI — Medicare Beneficiary Identifier
- LCD — Local Coverage Determination
- NCD — National Coverage Determination
- Policy article
- HCPCS — Healthcare Common Procedure Coding System
- Length of need
- Prior authorization exemption
- CMN and DIF — Certificate of Medical Necessity and DME Information Form
- Proof of delivery
- TPE — Targeted Probe and Educate
- Prepayment review