09/10/2026

Suppliers Warn of Closures & Layoffs Under RID Competitive Bidding

AAHomecare Alert, Published 9/10/2026

To capture the real-world impact of the Round 2021 (RID) Competitive Bidding Program, AAHomecare surveyed the industry this August, and the results confirm what many providers have long feared: this program threatens patient access on a national scale. Based on Medicare claims data, AAHomecare estimates approximately 3,650 suppliers would be impacted by the RID CBP. A total of 306 companies, representing more than 1,500 locations, participated in the survey, providing a broad view of projected business responses. Key findings include:

• Workforce reductions. 50% would lay off employees; more than one in three said they would eliminate at least half of their current workforce.
• Business viability risk. 47% anticipate 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 DMEPOS companies would face significant viability risk.
• Product category exits. 53% would exit one or more affected product categories, reducing supplier availability nationwide.
• Reduced service areas. 45% 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% report 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 FFS.

These findings are in contrast to CMS' Regulatory Impact Analysis for the CY 2025 Rule, which stated there would be "no economic impact" from the RID CBP.

This data makes clear the need to pause the Competitive Bidding Program for further evaluation.

AAHomecare shared the data with the White House and Vice President's office following a request for more information. We appreciate the Administration's continued engagement on this issue and welcome the opportunity to discuss these findings further. We also want to thank the DMEPOS suppliers who participated in this survey. 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 legislators to let them know how this program will impact you and share the survey results issue brief which can be found on our updated competitive bidding resources and information page.