A new survey from the American Association for Homecare (AAHomecare) captured the impact of the 2021 remote item delivery (RID) competitive bidding program (CBP) round. The findings showed that the planned 2028 round would threaten patient access to care and products on a national scale, lead to layoffs, and pose a serious threat to business survival, AAHomecare said.
Based on Medicare claims data, AAHomecare estimated that approximately 3,650 suppliers would be impacted by the 2028 program. A total of 306 companies, representing more than 1,500 locations, participated in the survey.
Key findings included:
- Workforce reductions
50 percent of respondents would lay off employees; more than one in three said they would eliminate at least half of their current workforce.
- Business viability risk
47 percent anticipated significant risk to business viability, closing one or more locations, facing a high risk of going out of business, and/or closing entirely. Extrapolated across the 3,650 impacted suppliers, more than 1,700 durable medical equipment, prosthetics, orthotics and supplies (DMEPOS) companies would face significant viability risk.
- Product category exits
53 percent would exit one or more affected product categories, reducing supplier availability nationwide.
- Reduced service areas
45 percent would reduce operations or shrink their service area, limiting geographic access to products and services, particularly in rural and underserved communities.
- Impact beyond Medicare
71 percent reported that the loss of Medicare revenue would also affect their ability to sustainably serve patients covered by other payers, showing the impact would extend well beyond Medicare fee-for-service.
The findings contrast with CMS’ Regulatory Impact Analysis for the Calendar Year 2025 Rule stating that there would be “no economic impact” from the RID CBP, AAHomecare said.
AAHomecare shared the data with the White House and Vice President’s office following a request for more information.
“We also want to thank the DMEPOS suppliers who participated in this survey,” AAHomecare said. “Your willingness to share data on your operations made this a credible, industry-wide picture of the RID CBP’s impact and gives AAHomecare the evidence we need to advocate on your behalf. Members should continue to reach out to your members of Congress to let them know how this program will impact you and share the survey results.”
To see the survey results, visit AA Homecare’s website.
