CMS Releases CPI-U Adjustments For DMEPOS In 2025 And Fee Schedule Q1

Published in Government Relations on December 16, 2024

CMS released the annual inflation factor to be applied to DMEPOS items effective Jan. 1, 2025, with an implementation date of Jan. 6, 2025. The breakdown of the adjustment is dependent upon whether the serviced items are included in the competitive bidding program (CBP) or are in formerly competitive bid areas (CBAs) such as rural and non-rural.  

  • CBP items in former CBAs: +2.9%  
  • CBP items in non-CBAs: +3%  
  • Non-CBP items: +2.4%  

In the current environment, the DMEPOS industry welcomes any increased adjustments to the fee schedule allowables. Even though there is still some ground to cover by getting the allowables adjusted to reflect the higher costs for operational expenses and higher product costs, the increase is welcomed.  

Other Noteworthy Updates: 

  • Lymphedema Items 
    • Some items within this category will see a 3% increase. 
  • Therapeutic Shoes 
    • Updates being made to A5503 – A5507, as well as A5512, A5513, A5514. 
  • Diabetic Testing Supplies 
    • Updates to mail order diabetic testing supplies billed with the KL modifier. 
  • Oxygen Maintenance And Service (MS modifier)  
    • 2.4% increase yielding an allowable of $87.82. 
  • Labor/Repair/Service Codes (K0739, L4205, L7520)  
    • 3% increase. 

CMS has released the DMEPOS fee schedule for Q1 2025. The PDAC will get their updates completed soon. The meantime the allowables can be found using this link

Support DME Legislation as the 118th Congress Concludes  

As the 118th Congress draws to a close, we urgently need your help. Congressional negotiations are currently underway to determine the scope of end-of-year health and budget legislation. We are optimistic that the DME Legislation (H.R. 5555 and S. 1294) will be included in the final legislative package, but your support is crucial to ensure this happens!  

What You Can Do

Please reach out to your legislator’s health staffer in both the Senate and the House, either by phone or email, and urge them to “support the inclusion of H.R. 5555 and/or S. 1294 in any end-of-year package.” You can easily send a message by clicking on this link: Action Center | VGM & Associates. You are able to edit the message and add personal reasons why this legislation is important to your customers, your business, and all users of DME.  

Thank you for being the voice of the DME industry! Your efforts are vital in getting this legislation across the finish line.  

From Our Experts

MAMES Succeeds In Improving Coverage For Breast Pumps And Lactation Services In Nebraska thumbnail MAMES Succeeds In Improving Coverage For Breast Pumps And Lactation Services In Nebraska MAMES has successfully advocated for enhanced coverage of breast pumps and lactation services in Nebraska. Working closely with the Medicaid Director, MAMES ensured the implementation of these changes would be effective and beneficial. The new coverage aligns with other Medicaid programs in the Midwest. A Tribute to John Gallagher: A Journey of Dedication and Memories thumbnail A Tribute to John Gallagher: A Journey of Dedication and Memories When I started working for John Gallagher 12 years ago, I often heard the phrase, “baptism by fire.” I quickly learned what that meant. At the time, the team consisted of John Gallagher, Mark Higley, and Tom Powers, and they were all constantly on the road. I would get a phone call from John saying, “The ESRD was just released, look it up and write up a summary, we need to get this to our members ASAP. I'm hopping on a plane…get it out before the end of the day.” Rep Mariannette Miller-Meeks Introduces The Veterans Supporting Prosthetics Opportunities and Recreational Therapy (“SPORT”) Act thumbnail Rep Mariannette Miller-Meeks Introduces The Veterans Supporting Prosthetics Opportunities and Recreational Therapy (“SPORT”) Act Rep. Mariannette Miller-Meeks (R-Iowa), who, along with proving to be a champion of DMEPOS related legislation, serves as chair on the House Veterans Affairs Subcommittee on Health. Recently she introduced H.R. 9478, The Veterans Supporting Prosthetics Opportunities and Recreational Therapy (“SPORT”) Act. Congress Passes, President Signs Continuing Resolution thumbnail Congress Passes, President Signs Continuing Resolution As you know by now, Congress passed a Continuing Resolution (CR) to keep the government operating for another three months. Signed by President Joe Biden, this resolution will only fund critical government operations through March 31, 2025. Breaking: Year-End Package Update thumbnail Breaking: Year-End Package Update As lawmakers race to avert a government shutdown ahead of this Friday's deadline, we have learned that the provision to reinstate and extend the 75/25 blended rate will not be included in the proposed continuing resolution that is expected to fund the federal government until March 14, 2025. Despite exhaustive bipartisan efforts from all reaches of the HME community, including providers and stakeholders, there was not enough support to get it included in the package. BREAKING – Rep. Guthrie Tapped To Lead Energy And Commerce Committee thumbnail BREAKING – Rep. Guthrie Tapped To Lead Energy And Commerce Committee The House Republican Steering Committee recommended Rep. Brett Guthrie (R-KY) on Monday to be the next chairman of the Energy And Commerce Committee. The Energy And Commerce Committee has jurisdiction over a broad range of policy issues and federal departments, including healthcare, the Department Of Energy, the Food And Drug Administration, and more. Guthrie has sat on five of the panel's six subcommittees and is chair of its health subcommittee. Action Needed: Support DME Legislation As The 118th Congress Concludes thumbnail Action Needed: Support DME Legislation As The 118th Congress Concludes As the 118th Congress draws to a close, we urgently need your help. Congressional negotiations are currently underway to determine the scope of end-of-year health and budget legislation. We are optimistic that the DME Legislation (H.R. 5555 and S. 1294) will be included in the final legislative package, but your support is crucial to ensure this happens! Champions of Change: Choice Medical thumbnail Champions of Change: Choice Medical We are proud to recognize two HME suppliers and VGM members who have recently taken the initiative to engage with their legislators and staff members.