New Survey Finds Medicare Bidding Program Threatens Thousands of Jobs and Small Businesses

ARLINGTON, Va., Sept. 16, 2026 /PRNewswire/ -- More than eight in ten companies anticipate significant business risk due to a new Medicare program called Competitive Bidding. This program will dramatically limit contracts for certain categories of essential medical products used every day by people with diabetes, urological conditions, and ostomates to a small group of suppliers nationwide. That threatens jobs and small businesses across the country, according to a new survey by the American Association for Homecare (AAHomecare).

Half of suppliers serving affected categories expect to lay off employees if they do not receive a contract, while nearly half say losing a contract could threaten their ability to remain in business.

"These findings show that competitive bidding is poised to deal a serious blow to the safety net that keeps people out of hospitals and in their homes," said Tom Ryan, president and CEO of AAHomecare. "Home medical equipment isn't a luxury; it's a lifeline. Half of these suppliers are bracing to cut jobs, and nearly half expect significant risks to their business if they lose a contract. Congress needs to step in before this does irreversible damage."

Beginning in January 2028, the Round 2028 Remote Item Delivery (RID) Competitive Bidding Program will require suppliers to compete for a limited number of nationwide contracts: 10 for continuous glucose monitors and insulin pumps, six for ostomy supplies, and five urological supplies. From August 12-30, AAHomecare surveyed 306 companies representing more than 1,500 locations about how losing a contract would affect their businesses.

Respondents identified at least 3,600 jobs that would likely be eliminated. More than one in three companies said they would cut at least half their workforce. In addition, 53% said they would exit one or more affected product categories. More than 70% said losing Medicare revenue would also affect their ability to serve people covered by other insurers, underscoring how the bidding program could cause access issues well beyond Medicare.

"CMS' regulatory analysis concluded that the final rule would not have a 'significant economic impact on a substantial number of small entities,' but it's clear that suppliers anticipate significant consequences for local jobs, businesses, and access to care," Ryan said. "We urge policymakers to delay the program, bring together technical experts to fully evaluate its potential consequences, and test the model in a limited market before launching it nationwide."

Media ContactCaleb Newman[email protected] 202-655-3444

About AAHomecareThe American Association for Homecare represents home medical equipment providers, manufacturers, and other stakeholders working to strengthen access to quality care in the home. Learn more at aahomecare.org.

SOURCE American Association for Homecare