CMS announces CPI-U increase

WASHINGTON – CMS has published a CPI-U increase for DMEPOS that ranges from 2.4% to 3% for calendar year 2025, AAHomecare reports. 

Although the CPI-U is 3%, the inflation adjustment will differ depending on whether the item has been included in the competitive bidding program and whether the patient’s zip code is in a former competitive bidding area. 

Below are the CPI-U adjustments for 2025: 

• CBP items in former CBAs (projected percentage change): +2.9% 
• CBP items in non-CBAs (CPI-U): +3% (not directly stated in the change request) 
• Non-CBP items (CPI-U minus productivity adjustment): +2.4% 

AAHomecare provided the following analysis: 

What this means for CBP items in former CBAs 
For items such as CPAP devices, oxygen and NPWT where the payment is based on CBP payment rates, the 2.9% increase should be directly applied to the current 2024 fee schedule. 
  
What this means for non-CBP items 
For items that have never been part of the CBP, such as urological and ostomy supplies, the 2.4% inflation adjustment should be directly applied to the current 2024 fee schedule, regardless of location in the country. 
  
What this means for CBP items in rural areas 
For CBP items in rural areas, the 50/50 blended rate will continue to be applied (50% fully adjusted regional payment/50% unadjusted fee schedule from 2015), meaning the 3% increase will only be applied to the fully adjusted portion of the calculation. As such, the portion of the reimbursement calculation that is based on the static 2015 rates will remain the same, but the fully adjusted portion will increase by 3%. The 2024 rate = 50% derived from the 2015 rates, 50% derived from the current regional rates + 3% increase.  
  
What this means for CBP items in non-rural areas 
For CBP items in non-rural, non-bid areas, the payment rate would be a 3% increase to the current CY 2024 non-rural, non-bid rates.