How Do Tariffs Affect DME Availability for Patients?

The April 2025 tariff overhauls have sent shockwaves through the DME industry.

On the surface, the changes appear to impact import duties. However, for DMEs, these overhauls could threaten the delivery of critical care and vital equipment to patients.

Read on for a deep-dive on how tariffs could affect DME availability for patients.

Sweeping Changes

In early April, sweeping, new tariff policies were announced, including a 10% baseline duty on most imports and much steeper “reciprocal” tariffs for certain countries. Though most of the steeper reciprocal tariffs have been put on hold for now, the 10% baseline duty remains.

China, a key supplier for DME components, faces a 145% tariff rate as well.

Obviously, this is not just a small increase - it’s a massive change that could have major impact.

Pharma Received Exemptions (DMEs Did Not)

Pharmaceuticals got exemptions. DMEs did not.

The immediate result? Costs are going up across the board, from CPAP machines and insulin pumps to diagnostic imaging components and lymphedema pumps. Aeroflow Health expects 7–12% increases in device pricing. Other sources report similar projections.

Here's the real catch: DMEs work with fixed reimbursement rates. Medicare doesn’t adjust because a CPAP shipment costs 12% more; contracts with payers are already locked in. This means DMEs are now caught in an unfortunate, challenging reality: eat the cost or make hard choices.

Smaller DMEs Will Likely Be Hit Harder

Providence Health, a large nonprofit system, estimates that tariffs could cost them up to $25 million annually. While that’s a big number, smaller DMEs have less room to maneuver.

For small DMEs, even a 5% increase in supply costs could be deeply disruptive. Without the ability to absorb or offset new expenses, they face difficult decisions, such as laying off staff, reducing product lines, or limiting service areas. These actions don’t happen in a vacuum.

Patient Wellbeing and Safety

Underserved communities rely heavily on local DMEs. Unfortunately, if a DME goes under, or even just scales back, patients lose access to critical services like sleep therapy, mobility support, home oxygen, and the list could go on.

Beyond access, patient safety is at stake, putting additional pressure on already strained care networks. And this is devastating to consider.

Pushing For Change

Industry groups like AdvaMed and AAHomecare are pushing hard for exemptions. These groups are calling out the potential impact of tariffs on patient care quality, equipment cost, and future innovation.

However, results take time, and policy change is often more of a marathon than a sprint. Meanwhile, DMEs are stuck in tariff-aftershock limbo. Costs are rising, options are shrinking, and time is slipping away.

What’s Needed Now?

First, short-term tariff exemptions for essential DME categories must be prioritized.

Medically necessary devices are not optional. Without immediate relief, DMEs are forced to pass rising costs down the chain, delay orders, or reduce availability.

A targeted exemption framework would ease short-term pressures and help avoid service disruption in critical areas.

Second, the DME industry needs longer-term reimbursement reform.

Current payment models are largely fixed and unresponsive to rising global costs, especially on short notice. DMEs are being asked to deliver the same care at higher costs, without a corresponding increases in reimbursement.

Without both of these changes? The math just doesn’t work. And, unfortunately, we may see patients paying the price.