Federal News
CMS Expands Medical Device Bidding Amid Security Concerns
March 22, 2026
The Centers for Medicare & Medicaid Services (CMS) is expanding its Durable Medical Equipment Competitive Bidding Program to include advanced medical devices such as continuous glucose monitors and insulin pumps, with implementation expected on or before January 1, 2028. This expansion has raised national security concerns from retired military officials and Senate Republicans, who warn that allowing foreign-made devices, particularly those manufactured in China, into the U.S. healthcare supply chain could expose sensitive patient data to adversarial entities and undermine domestic manufacturers. Texas state officials have taken legislative and enforcement actions to ban technologies linked to the Chinese Communist Party in state healthcare systems and advocate for stricter procurement standards at the federal level to exclude such devices.
- Procurement professionals should anticipate increased scrutiny and potential regulatory requirements related to the sourcing of advanced medical devices, especially regarding supply chain security and data privacy.
- Contractors and vendors supplying medical devices may face heightened compliance demands and competitive challenges if federal and state agencies adopt exclusionary policies against foreign-made products with security risks.
- This development signals a growing intersection between healthcare procurement and national security considerations, requiring procurement teams to integrate risk assessments related to geopolitical factors and cybersecurity.
- Organizations involved in medical device manufacturing and supply should evaluate their product security features and supply chain transparency to align with evolving federal and state procurement policies.
Agencies
Centers for Medicare & Medicaid Services, Food and Drug Administration, Cybersecurity and Infrastructure Security Agency, State of Texas, Texas Cyber Command
Vendors
Contec Medical Systems