The Centers for Medicare & Medicaid Services (CMS) has just announced the next steps in the Medicare Competitive Bidding Program for durable medical equipment, prosthetics, orthotics, and supplies (DMEPOS) regarding implementation of the Round One Rebid. According to a CMS press release, the general timeline for opening the bid window is in the fall of this year.

"Congress mandated that competition for the Round One Rebid occur in 2009. CMS is announcing the next steps to implement the DMEPOS Competitive Bidding Program now to give the supplier community ample time to prepare as well as inform other stakeholders," said Charlene Frizzera, CMS Acting Administrator, in the press release. "This program generated substantial savings for Medicare and beneficiaries who used these items and supplies in the competitive bidding areas last summer and is consistent with CMS' goal to pay appropriately for Medicare items and services."

CMS will commence prebidding supplier awareness and instructional efforts on the necessary steps that supplies need to begin in order to be ready for registration and bidding. These steps include obtaining appropriate state licenses, updating Medicare enrollment files with the National Supplier Clearinghouse and obtaining accreditation and becoming bonded. On June 4, 2009, CMS will hold a meeting of the DMEPOS competitive bidding Program Advisory and Oversight Committee (PAOC), and then announce more details of the timeline for the program in the summer when the bidder registration period is expected to begin. CMS says it has improved the process for the Round One Rebid, with an upgraded on-line bid submission system, early bidder education, and increased oversight of bidders that are new to product categories or competitive bidding areas.

Congress had enacted a temporary delay of the competitive bidding program in 2008 and mandated certain changes in the program. These changes included a financial document review process and a requirement for contract suppliers to report subcontract relationships with other suppliers. Some DMEPOS items and areas were excluded from competitive bidding, and hospitals that furnish certain types of DMEPOS items to their own patients were also excluded.

According to CMS, Round One of the DMEPOS competitive bidding program, implemented in July of 2008, in 10 competitive bidding areas, resulted in average savings of 26 percent compared to the costs Medicare would have reimbursed for the competitive bid items under the existing DMEPOS fee schedule in 2008.

The CMS advises that there is no immediate effect and beneficiaries may continue to use current DMEPOS suppliers.

Additional information on the DMEPOS competitive bidding program can be accessed from: http://www.cms.hhs.gov/DMEPOSCompetitiveBid/01_overview.asp#TopOfPage

Source: CMS

More Industry Headlines