2028 DMEPOS Competitive Bidding Bid Bonds: What Suppliers Need to Know

Medicare’s DMEPOS Competitive Bidding Program is back for Round 2028, and if you plan to bid, you’ll need a bid surety bond in hand before the bid window closes. Here’s exactly what the program requires, what’s changed, and how to secure your bond the right way.

If you’re an HME or O&P supplier, Round 2028 is the most consequential competitive bidding cycle in years. It’s the broadest round CMS has ever run, it adds two entirely new product categories, and it comes with a bid surety bond requirement that recently doubled. The suppliers who understand the rules early and lock in their bonds ahead of the crowd will be the ones positioned to compete.

At VGM Insurance, we live in the industries we serve. For more than 35 years, we’ve specialized in Medicare and Medicaid surety bonds for HME and O&P providers, and we’re ready to guide you through your 2028 competitive bid bond every step of the way.

What Is the 2028 DMEPOS Competitive Bidding Program?

The Durable Medical Equipment, Prosthetics, Orthotics, and Supplies (DMEPOS) Competitive Bidding Program (CBP) is a Medicare program, originally mandated by Congress through the Medicare Prescription Drug, Improvement, and Modernization Act of 2003, in which suppliers submit competitive bids to furnish specific product categories, and CMS awards a limited number of contracts to qualified suppliers offering quality items at the most competitive prices.

After a temporary gap period, CMS announced Round 2028 on November 28, 2025, as part of the Calendar Year 2026 Home Health Prospective Payment System Final Rule (CMS-1828-F). Round 2028 will begin no later than January 1, 2028, and it’s notable for two reasons: it’s the broadest round to date, and it includes ostomy and urological supplies for the first time in program history.

The seven product categories for Round 2028 are:

• Class II Continuous Glucose Monitors (CGMs) and Insulin Pumps

• Urological Supplies (new)

• Ostomy Supplies (new)

• Hydrophilic Urinary Catheters

• Off-the-Shelf (OTS) Back Braces

• OTS Knee Braces

• OTS Upper Extremity Braces

All Round 2028 categories fall under the Nationwide Remote Item Delivery (RID) Program.

What Is a Competitive Bidding Bid Bond?

A bid surety bond (also called a bid bond) is a financial guarantee you submit with your bid. It assures CMS that if you’re offered a contract at or below the median composite bid rate for a product category and you decline it, the bond can be forfeited. In short, it’s CMS’s safeguard against disingenuous or non-committal bids and it’s a mandatory eligibility requirement.

Who Needs a Bid Bond for Round 2028?

Any supplier, regardless of size, that intends to submit a bid for a Round 2028 product category must obtain a bid surety bond to be eligible for a contract. This applies to HME suppliers, O&P providers, and any DMEPOS supplier competing in the program.

The bid surety bond is one of five core bidder eligibility requirements. To submit a valid bid, you must also have:

1. Licensure: All current, required state/territory licenses reflected in PECOS for every location on your bid, before the bid window closes.

2. Up-to-date enrollment: A current CMS-855S enrollment application on file with your National Provider Enrollment (NPE) contractor and reflected in PECOS.

3. Accreditation: Accreditation by a CMS-approved organization for the lead item and all non-lead items in each category you bid on. (Accreditation exemptions do not apply to the CBP.)

4. Credit report and score/rating: A business credit report dated no earlier than 90 days before the bid window opens, uploaded in Connexion.

5. Bid surety bond: Detailed below.

Don’t overlook the enrollment moratorium. CMS implemented a six-month temporary moratorium on accepting initial enrollment applications, effective February 27, 2026. If you need to enroll a new supplier location to bid in Round 2028, prepare your application now so you can submit as soon as the moratorium ends.

How Much Is the Required Bid Bond?

This is the change every supplier needs to know.

For Round 2028’s nationwide Remote Item Delivery (RID) competitive bidding area, the bid surety bond amount is $100,000, an increase from the previous $50,000. CMS finalized this change through the FY 2027 Inpatient Rehabilitation Facility (IRF) PPS Final Rule (CMS-1845-F), with the goal of deterring disingenuous bids.

Here’s the good news for bidders competing across multiple categories:

• You need only one $100,000 bid surety bond per bidding entity for the RID CBP regardless of how many RID competitions you bid on.

• For any non-RID competitions, the bond amount remains $50,000, and a separate bond is required for each competitive bidding area.

A few additional requirements to keep in mind:

• The bond must be purchased from an authorized surety listed on the U.S. Department of the Treasury’s Listing of Certified Companies.

• Proof of the bond must be uploaded in Connexion before the bid window closes.

• If there’s a problem with your bond, you’ll have 10 business days to submit a rider correcting the deficiency.

Your bond is in good hands. While VGM Insurance facilitates your DMEPOS bid bond, the bond itself is issued through Lexon Insurance Company, our surety carrier partner. Lexon Insurance Company is included on the CMS list of accepted surety bond providers, so you can bid with confidence that your bond meets Medicare’s requirements.

When Should Suppliers Begin Preparing?

Now. While the program starts January 1, 2028, the deadlines that actually matter (registration, the bid window, licensure, and accreditation) hit well before then.

Here’s CMS’s target timeline for Round 2028:

Dates are CMS target dates and may shift. The critical takeaway: your bond, licensure, accreditation, and enrollment all need to be finalized before the bid window closes in late fall 2026—which is closer than it looks.

Common Mistakes Suppliers Make

• Waiting until the bid window opens to secure a bond. Surety underwriting takes time. Last-minute requests risk missing the deadline entirely.

• Assuming the bond is still $50,000. The RID bond amount is now $100,000. Budget accordingly.

• Buying from a non-certified surety. Your bond must come from a company on the Treasury’s Listing of Certified Companies, or it won’t be accepted.

• Letting licensure or accreditation lapse in PECOS. A bond alone won’t make you eligible. All five requirements must be met.

• Ignoring the enrollment moratorium. New locations may need extra lead time to enroll after February 27, 2026.

Why Suppliers Are Securing Bid Bonds Early

Smart suppliers treat the bid bond as the first box to check, not the last. Securing it early means:

• No deadline scramble when the bid window opens.

• Time to correct any issues long before the 10-business-day rider clock ever becomes a concern.

• A clear head to focus on strategy—your bid pricing, product categories, and PECOS accuracy—instead of paperwork.

• Confidence that your bid won’t be disqualified over a missing or non-compliant bond.

The bond is the price of admission. Get it handled, and you can compete on your terms.

Why Work With VGM Insurance for Your 2028 Competitive Bid Bond?

We don’t dabble in bonds. We specialize in them for the exact industries you serve. When you request your 2028 competitive bid bond from VGM Insurance, you get:

• Previous competitive bidding experience. We’ve supported HME and O&P suppliers through prior rounds and understand what’s at stake.

• Deep knowledge of CMS requirements. From Treasury-certified sureties to Connexion upload deadlines, we know the details that keep your bid valid.

• HME and O&P specialization. We know your business because we live in your industry every day.

• Access to all the bonds you need. Medicare/Medicaid surety bonds, bid surety bonds, and state-specific bonds, all in one place.

• A dedicated support team. Real people who answer your questions and respond to your requests.

• Fast turnaround. Because when a deadline is coming, speed matters.

• VGM industry connections. Backed by the reach and reputation of the VGM Group.

• Long-standing supplier relationships. More than 35 years of building forever relationships with providers nationwide.

Every bond we facilitate is issued through Lexon Insurance Company, our trusted surety carrier partner and a CMS-accepted surety bond provider giving you a seamless, compliant path from quote to bid.

When you work with a bond provider that truly gets you, the whole process gets easier.

Frequently Asked Questions
 

What is a CMS competitive bidding bid bond?

A bid surety bond is a financial guarantee suppliers must submit with their bid for the DMEPOS Competitive Bidding Program. It assures CMS you’ll honor a contract offer at or below your bid rate. Without it, your bid is incomplete and ineligible.

How much is the DMEPOS bid bond for Round 2028?

For the nationwide Remote Item Delivery (RID) competitive bidding area, the bid surety bond amount is $100,000, increased from $50,000 under the FY 2027 IRF PPS Final Rule. Only one $100,000 bond is required per bidding entity for the RID program, regardless of how many RID competitions you bid on. Non-RID competitions require a separate $50,000 bond each.

Who needs a bid bond for Round 2028?

Any HME or O&P supplier of any size that submits a bid for a Round 2028 product category must obtain a bid surety bond to be eligible for a contract.

When do suppliers need to obtain a bid bond?

Proof of your bid surety bond must be uploaded in Connexion before the bid window closes targeted for late fall 2026. Because underwriting takes time, suppliers should secure their bond well in advance.

Where do I buy a competitive bidding bid bond?

The bond must be purchased from an authorized surety on the U.S. Department of the Treasury’s Listing of Certified Companies. VGM Insurance facilitates your Round 2028 bid bond, which is issued through Lexon Insurance Company, a CMS-accepted surety bond provider. Simply request a quote to get started.

Is VGM Insurance’s surety on the CMS accepted list?

Yes. VGM Insurance facilitates DMEPOS bid bonds that are issued through Lexon Insurance Company, our surety carrier partner. Lexon Insurance Company is included on the CMS list of accepted surety bond providers, so your bond will meet Medicare’s competitive bidding requirements.

Can one supplier use a single bond for multiple categories?

Yes, for the RID program, one $100,000 bid surety bond covers your entity regardless of how many RID competitions you bid on. Separate bonds are only required for non-RID competitive bidding areas.

What happens if my bid bond has a problem?

If there’s a deficiency with your bid surety bond, CMS gives you 10 business days to submit a bond rider correcting it.

What other requirements must I meet to bid?

Beyond the bond, you need current state licensure in PECOS, an up-to-date CMS-855S enrollment, accreditation for all lead and non-lead items, and a recent business credit report and score.

What products are included in Round 2028?

Seven categories: Class II CGMs and Insulin Pumps, Urological Supplies, Ostomy Supplies, Hydrophilic Urinary Catheters, OTS Back Braces, OTS Knee Braces, and OTS Upper Extremity Braces. Ostomy and urological supplies are included for the first time.

When does Round 2028 take effect?

Round 2028 contracts and single payment amounts take effect no later than January 1, 2028.

Request Your 2028 Competitive Bid Bond

Call us at 800-362-3363
Email your quote request to: bondinfo@vgminsurance.com
Start your application: Competitive Bid Surety Bond Application - Intellistack

VGM Insurance—bonds facilitated by people who live in the industries we serve, issued through Lexon Insurance Company, a CMS-accepted surety provider.