This bill addresses how Medicare pays for durable medical equipment—things like wheelchairs, oxygen tanks, and other medical devices that people use at home. Specifically, it deals with a competitive bidding program where companies bid to supply these items to Medicare patients.

The bill gives temporary relief to medical equipment suppliers in non-rural areas. Instead of immediately switching to new payment rates determined by a 2021 competitive bidding round, suppliers can continue using an older, transitional payment method through the end of 2025. This essentially delays the implementation of lower payment rates that would otherwise take effect sooner. Starting January 1, 2026, the new payment rates from the competitive bidding process will kick in for all areas.

In practical terms, this means medical equipment suppliers get extra time to adjust to potentially lower Medicare payments. Patients shouldn't see much change in their access to equipment, but this gives companies a longer runway to adapt their business operations before the new payment structure fully takes effect. The bill is a relatively narrow fix focused on timing rather than fundamentally changing how Medicare pays for these items.

Competitive Bidding Relief Act

Lankford, James

Competitive Bidding Relief ActThis bill extends until December 31, 2025, a higher payment rate (known as the 75/25 blended rate) for durable medical equipment in nonrural or noncontiguous areas under Medicare.