CMS Increases Surety Bond Requirement to $100,000 for DMEPOS Competitive Bidding Program
The Centers for Medicare & Medicaid Services (CMS) has officially finalized a policy update to the Durable Medical Equipment, Prosthetics, Orthotics, and Supplies (DMEPOS) Competitive Bidding Program (CBP), doubling the required DMEPOS surety bond amount from $50,000 to $100,000 for select bidding structures (HME News Staff, 2026).
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The updated standard was published in the FY 2027 Inpatient Rehabilitation Facilities (IRF) Prospective Payment System (PPS) Final Rule (CMS-1845-F).
Key Takeaways for DMEPOS Providers
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Single $100,000 Bond for Remote Item Delivery (RID): Bidding entities operating under the Remote Item Delivery (RID) model will now be required to post one single $100,000 surety bond, regardless of the number of regional or national competitions they enter (CMS-1845-F, 2026).
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Deterrence Strategy: According to CMS, the rate increase is intended to curtail non-binding or speculatory bidding by “deterring bidders from submitting disingenuous bids” that distort competitive market rates (HME News Staff, 2026).
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Standard Competitions Remain at $50,000: For standard non-RID competitions, the required bond remains at $50,000. Suppliers entering multiple competitive bidding areas (CBAs) under standard rules must continue to secure individual $50,000 bonds for each area.
Round 2028 Bidder Education Underway
In conjunction with finalizing the rule, CMS has officially opened the educational phase for Round 2028 of the Competitive Bidding Program.
This phase is designed to assist suppliers and prospective bidders in navigating new eligibility parameters, technical requirements, and key program revisions well ahead of the official registration and bidding windows (CMS-1845-F, 2026). Suppliers planning to participate are encouraged to review updated compliance standards early to ensure financial and administrative readiness.
References & Citations
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CMS Final Rule: Centers for Medicare & Medicaid Services. (2026). Medicare Program; Inpatient Rehabilitation Facility Prospective Payment System for Federal Fiscal Year 2027 (CMS-1845-F). U.S. Department of Health and Human Services.