Retired military officials warn CMS bidding expansion poses national security risks

By Tom Joyce
The Center Square

A coalition of retired military officers and former national security officials is urging the Centers for Medicare & Medicaid Services to halt an expansion of its medical equipment bidding program, warning it could create national security risks.

In a letter to CMS Administrator Dr. Mehmet Oz, the group raised concerns about plans to expand the Durable Medical Equipment, Prosthetics, Orthotics, and Supplies Competitive Bidding Program to include more advanced medical devices, including continuous glucose monitors and insulin pumps.

“We are writing to share our strong concerns about the Centers for Medicare & Medicaid Services’ proposal to expand the Durable Medical Equipment, Prosthetics, Orthotics, and Supplies (DMEPOS) Competitive Bidding Program to include a range of highly specialized medical products,” the officials wrote.

The letter notes that many of the products are no longer simple tools.

“Digitally connected devices such as CGMs and insulin pumps transmit real-time health data to providers, caregivers, and cloud-based platforms,” they wrote.

The coalition warned that placing these products in a cost-based bidding system could let foreign manufacturers, including companies with ties to the Chinese Communist Party, enter the Medicare supply chain. Since the program awards contracts largely on price, they argued that foreign firms benefiting from state subsidies could undercut American companies.

“This is more than a matter of economics or procurement policy. It is a question of strategic vulnerability,” the letter states.

The group noted potential risks for military personnel, veterans, and government employees who rely on federal health systems.

“There is also the question of patient data,” the officials wrote. “Many of the products in question are capable of collecting, storing, and transmitting detailed biometric information.”

They argued that when companies manufacture and service devices outside the United States, it becomes harder to ensure sensitive health data remains protected domestically and does not fall into the hands of American adversaries.

The coalition also warned that forcing domestic firms to compete solely on price could also reduce investment in research and development and weaken American leadership in medical technology.

They urged CMS to “disallow foreign entities access to millions of Medicare patients’ health information by excluding them from competing for DMEPOS contracts” and to “pause the proposed expansion of the competitive bidding program and conduct a full national security and economic impact assessment before proceeding.”

CMS has said it uses the competitive bidding program to lower costs and protect Medicare trust funds. The next round of contracts will take effect on or before Jan. 1, 2028.