To amend title XVIII of the Social Security Act to exclude urological and ostomy supplies from competitive acquisition programs under the Medicare program for 5 years, and for other purposes.
Summary
HR 10787 proposes a 5-year exemption for urological and ostomy supplies from Medicare's Competitive Acquisition Program. This is a direct positive signal for manufacturers and distributors of these specific chronic-care products, protecting their Medicare pricing from competitive bidding pressures. The bill is in early legislative stages, but the protectionist intent for this niche is clear.
See which stocks are affected
Key takeaways, market implications, full AI analysis, and connected signals are available to HillSignal members.
Already have an account? Log in
Key Takeaways
- 1.HR 10787 protects Medicare pricing for urological and ostomy supplies, directly benefiting manufacturers like $BDX and distributors like $OWI.
- 2.The bill is in early stages (referred to committee) and faces a long legislative path, but its protectionist mechanism is clear.
- 3.No direct federal funding is involved; the impact is preventing future Medicare cost-containment measures on these specific products.
Market Implications
The bill is a niche positive for the medical supplies sector, specifically companies with exposure to Medicare Part B urological and ostomy supplies. $BDX is the primary beneficiary given its market position in catheters. and $SNN have secondary exposure. The impact is purely defensive—protecting existing margins rather than creating new revenue streams. The early legislative stage means this is a monitoring event, not an immediate catalyst.
Full Analysis
Rep. Murphy (R-NC) introduced HR 10787 on October 9, 2026, which was subsequently referred to the House Committees on Energy and Commerce and Ways and Means. The bill is in an early legislative stage. The core mechanism is an amendment to the Social Security Act to exclude urological and ostomy supplies from Medicare's Competitive Acquisition Program (CAP) for five years. There is no authorized spending; the bill is a regulatory exemption that prevents CMS from using competitive bidding to lower reimbursement rates for these specific supplies. No convergence signals were provided in the candidate context, so this analysis stands alone as a niche protectionist maneuver within Medicare policy. The structural winners are companies with direct exposure to Medicare Part B urological and ostomy reimbursement. $BDX (Becton Dickinson) is the primary beneficiary given its market-leading position in urological catheters and drainage systems. $SNN (Smith & Nephew) benefits through its Advanced Wound Management and Ostomy Care segments. (Owens & Minor) benefits as a distributor of these medical supplies. The legislative path is long: the bill must pass through two committees, receive a House floor vote, find a Senate companion, and be signed into law. The early stage and narrow scope make this a monitoring event rather than an immediate catalyst.
Intelligence Surface
Cross-referenced against federal contracts, SEC insider filings & congressional trade disclosures
No confirming evidence found yet from contracts, insider trades, or congressional activity
What the bill does
Exemption from Medicare Competitive Acquisition Program (CAP) for urological and ostomy supplies for 5 years.
Who must act
Centers for Medicare & Medicaid Services (CMS).
What happens
CMS cannot implement competitive bidding for these specific product categories, preventing the typical 10-20% price reduction that CAP programs impose on suppliers.
Stock impact
BD's Urology and Continence Care segment (catheters, drainage systems) directly benefits. Medicare is a major payer for these chronic-care products. The exemption protects BD's pricing power and revenue stream on these high-margin consumables.
What the bill does
Exemption from Medicare CAP for urological and ostomy supplies.
Who must act
CMS.
What happens
CMS cannot implement competitive bidding, protecting pricing for advanced wound care and ostomy products.
Stock impact
SNN's Advanced Wound Management and Ostomy Care divisions benefit from the exemption, avoiding margin compression on Medicare-reimbursed sales.
Key Legislators
Connected Signals
Matched on shared policy language across AI analyses, with ticker & timing weight
MULTIPLE RECIPIENTS: $1.7B Department of Health and Human Services Federal Award
MULTIPLE RECIPIENTS: $5.6B Department of Health and Human Services Federal Award
MULTIPLE RECIPIENTS: $3.2B Department of Health and Human Services Federal Award
MULTIPLE RECIPIENTS: $6.1B Department of Health and Human Services Federal Award
MULTIPLE RECIPIENTS: $1.8B Department of Health and Human Services Federal Award
MULTIPLE RECIPIENTS: $1.4B Department of Health and Human Services Federal Award
MULTIPLE RECIPIENTS: $2.2B Department of Health and Human Services Federal Award
MULTIPLE RECIPIENTS: $1.1B Department of Health and Human Services Federal Award
Related Presidential Actions
Executive orders & memoranda affecting the same sectors or companies
Enhancing Program Integrity and Integrity and Interagency Coordination in the Administration of the H-1B Nonimmigrant Visa Program
This executive order directs the Secretaries of State, Labor, and Homeland Security to coordinate with Commerce, Education, and the SBA when processing H-1B petitions, and requires them to consider whether the employer has engaged in layoffs of similarly situated U.S. workers within the past year. It also orders the Labor Department to review past labor condition applications for potential enforcement actions against sponsoring employers, effectively tightening scrutiny on H-1B usage, especially by outsourcing firms.
Accelerating Access To Veterans' Benefits And Employment Opportunities
This proclamation orders the Secretaries of War and Veterans Affairs to mandate rapid, ongoing digital sharing of military personnel and medical records, deploy AI-powered tools for benefits applications, and update existing IT contracts for interoperability. It also requires the Transition Assistance Program to connect separating service members to specific jobs or training programs before discharge.
Delivering Gold Standard Childhood Vaccine Recommendations for Americans
This executive order directs HHS to establish a 'Gold Standard' childhood vaccine schedule with fewer recommended vaccines than current CDC guidelines, mandates that MMR be administered as three separate single-disease shots when domestically available, and instructs the DOJ to challenge state vaccine mandates that do not provide religious or medical exemptions. It also orders HHS to develop alternative adjuvants to aluminum and improve vaccine safety monitoring, while preserving access to existing vaccines.
Free — no credit card
Get the next market-moving signal before the news does
HillSignal scores every Congressional bill, federal contract, and insider filing for market impact and emails you the high-conviction ones — free, no credit card.
Weekly digest — the congressional activity that actually moved markets that week, in plain English. Free, one email.
Free forever plan · No credit card · Unsubscribe in one click
Want the live terminal too? Create a free account →