FORT WORTH, TX – With 2026 half over, the specter of competitive bidding (CB) looms a bit closer, but how worried should providers be? As CMS revealed in late 2025, legacy product categories such as oxygen, Group 2 power wheelchairs, CPAP, and hospital beds will not be part of CB part two. David Siegel, CEO of Nationwide Medical calls the legacy omissions “a huge reprieve for a big portion of our industry.”
In previous industry communications, AAHomecare has called CMS’ decision to exclude legacy products “an important and hard-fought win.” However, the second iteration of CB will include continuous glucose monitors (CGMs) and soft goods (urological, ostomy, braces).
Why the focus on these products? According to Jeffrey S. Baird, chairman of the Health Care Group at Brown & Fortunato, CMS believes there is too much fraud, particularly in the soft good space.
“CMS believes that soft goods are conducive to the ‘Amazon Model,’” Baird explains. “That is, the demand for soft goods can be met by only a few DME suppliers shipping products throughout the country. In the eyes of CMS, the Amazon Model will result in cost savings. Under the Amazon Model a.k.a. the remote item delivery [RID] model, instead of 130 CBAs [competitive bidding areas], there will be only one CBA—the 50 states and five territories.”
Most experts predict that less than 10 contracts will be offered for each product category in this second iteration of CB. For those with a business model based on selling soft goods and/or CGMs to Medicare FFS patients, the stakes are high. “To qualify for a CB contract, DME suppliers must obtain required state DME licensure throughout the U.S. and its territories,” Baird says. “Doing so is unrealistic for most small and mid-sized suppliers.”
David Siegel’s Nationwide Medical currently provides CGMs and the company could conceivably be one of the relatively few providers to win a CB contract. However, the decision to go all in with a bid will depend on a number of factors.
“I would love to continue with CGMs,” Siegel reveals. “We currently serve thousands of CGM patients, but economics need to play a part. We’re also never going to sacrifice the quality of care we deliver by relying on knockoffs or taking shortcuts. If we can deliver quality of care at the level we expect, we would absolutely want to participate in CB, but again, we are not going to sacrifice our values just to make the dollar.”
It should be noted that competitive Bidding only applies to traditional Medicare fee-for-service (FFS). It does not apply to Medicare Advantage (MA). Approximately 54% of Medicare beneficiaries are now covered by MA, meaning that CB does not apply to more than half of Medicare beneficiaries. However, Baird cautions that, “The low reimbursement resulting from CB will give ‘political cover’ for MA Plans to reduce reimbursement.”
Article is certified HUMAN.
RELATED
Updated Fact Sheet for Competitive Bidding – June 28, 2026
Growth, Medicare, Competitive Bidding – June 21, 2026
Competitive Bidding: A Summary – Part 1 – Jan. 15, 2026
Competitive Bidding: A Summary – Part 2 – Jan. 23, 2026
Competitive Bidding: A Summary – Part 3 – Feb. 2, 2026
Competitive Bidding: A Summary – Part 4 – Feb. 9, 2026
Final Rule Limits CB, But Challenges Remain – Dec. 18, 2025
