DMEPOS Relief Act Extends Higher Medicare Payments for Medical Equipment Until 2026

This new legislation, the DMEPOS Relief Act of 2025, is essentially hitting the pause button on a planned shift in how Medicare pays for durable medical equipment (DMEPOS)—think wheelchairs, oxygen tanks, and hospital beds—in most urban and suburban areas. Specifically, it forces the Secretary of Health and Human Services to keep using the current "transition payment rule" (found in 42 CFR 414.210(g)(9)(v)) until December 31, 2025. This means that providers in areas that are not rural or separated by water will continue receiving payments based on the existing formula, which is generally higher than the rates determined by Medicare’s competitive bidding program.

The Pause Button on Payment Cuts

What this extension does is delay the implementation of a new payment regulation (42 CFR 414.210(g)(9)(vi)) until January 1, 2026. For DMEPOS suppliers, this is a big deal because it provides stability and predictability for another year. If you run a local medical supply store, you won't face an immediate drop in Medicare reimbursement rates that could make it hard to keep your doors open or stock necessary equipment. For Medicare beneficiaries—your parents, neighbors, or colleagues who rely on this equipment—this translates to continued access, as providers are less likely to pull out of the market due to sudden payment cuts.

Who Pays for the Extension?

While this is a win for providers and for patient access in the short term, it does mean that the Medicare program will likely spend more money over the next year than it would have under the new, lower rates. The whole point of competitive bidding rates is to save taxpayer dollars by lowering the cost of equipment. By extending the current, more generous payment rates, the bill effectively maintains higher costs for the system until 2026. This is the trade-off: stability and access now, potentially higher costs for the government (and taxpayers) later.

The Procedural Shortcut

One detail worth noting is how the bill instructs the Secretary to make this happen. The legislation explicitly allows the Secretary to implement these payment adjustments simply by issuing "program instructions" or other methods, bypassing the lengthy, formal rulemaking process. While this ensures the extension happens quickly and without bureaucratic delays, it also means these specific financial decisions are made with less public input and transparency than a full rulemaking process would require. It’s a fast track for relief, but it concentrates a lot of authority in the Secretary's hands for this specific action.