Medicare Competitive Bidding Program Threatens Thousands of Jobs, Survey Finds

ARLINGTON, Va., Sept. 16, 2026 /CourierPR/ -- More than 80% of companies serving essential medical products under the Medicare program anticipate significant business risks due to a new competitive bidding program, according to a survey by the American Association for Homecare (AAHomecare). The program, set to launch in January 2028, will limit contracts for continuous glucose monitors, insulin pumps, ostomy supplies, and urological supplies to a small group of nationwide suppliers.

The survey, conducted from August 12-30, involved 306 companies representing over 1,500 locations. Half of these suppliers expect to lay off employees if they do not secure a contract, while nearly half believe losing a contract could jeopardize their ability to remain in business. Tom Ryan, president and CEO of AAHomecare, emphasized the potential impact on small businesses and jobs.

The survey revealed that at least 3,600 jobs could be eliminated if the program is implemented as planned. More than one-third of the companies surveyed said they would cut at least half their workforce. Additionally, 53% of respondents indicated they would exit one or more affected product categories. Losing Medicare revenue would also affect their ability to serve people covered by other insurers, underscoring the broader implications of the bidding program.

AAHomecare is urging 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.

The survey highlights the potential for the competitive bidding program to disrupt the home medical equipment market, affecting thousands of jobs and small businesses. As the program nears implementation, stakeholders are calling for a more comprehensive evaluation to protect the interests of both suppliers and patients.