The Centers for Medicare and Medicaid Services has outlined the next steps in the implementation of the Medicare competitive bidding program for durable medical equipment, prosthetics, orthotics and supplies (DMEPOS), including a general timeline for opening the bid window later 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. "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 begin general "pre-bidding" supplier awareness and education efforts on key steps that suppliers need to take to be ready for registration and bidding, including getting appropriate state licenses, updating Medicare enrollment files with the National Supplier Clearinghouse and getting accredited and bonded.
On June 4, CMS will convene a meeting of the DMEPOS competitive bidding Program Advisory and Oversight Committee (PAOC), after which it will announce the detailed timeline for the program in the summer.
The bidder registration period is expected to begin this summer before bidding opens in the fall. CMS officials said they have made a number of process improvements for the Round One rebid, such as 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.
As part of the Medicare Improvements for Patients and Providers Act of 2008 (MIPPA), Congress enacted a temporary delay of the competitive bidding program and mandated certain changes in the program. The law required CMS to terminate contracts awarded in Round One and schedule a Round One rebid in 2009.
Round One of the DMEPOS competitive bidding program was implemented on July 1, 2008 in 10 competitive bidding areas. According to CMS officials, the Round One competitive bidding process resulted in average savings of 26 percent compared to the prices Medicare would have paid for items under the existing DMEPOS fee schedule in 2008. These lower prices would have directly translated to lower out-of-pocket costs for Medicare beneficiaries, who are responsible for 20 percent coinsurance on these items and services after any unmet Part B deductible.