News and Updates
CMS Announces Competitive Bidding Payment Amounts
(March 21, 2008)
Still Moving Towards July 1, 2008 Start Up for Round One
On March 20, the Centers for Medicare & Medicaid Services (CMS) announced completion of the bid evaluation process and the single payment amounts for the first round of the Medicare Part B durable medical equipment, prosthetics, orthotics, and supplies (DMEPOS) competitive bidding program.
According to CMS, the amounts that Medicare will pay for the 10 product categories included in Round One of the DMEPOS Competitive Bidding Program overall average 26% less than Medicare's previous payment amounts. CMS lists the reductions as ranging from 14% on negative pressure wound therapy devices and accessories up to as much as 43% on mail order diabetic supplies. For enteral nutrients, supplies and equipment, reductions are listed as 26%.
CMS is notifying all bidders of their bid results. CMS states that small suppliers, those with gross revenues of $3.5 million or less, make up about 64 percent of the suppliers offered contracts. Winning bidders will be mailed contracts requiring their signatures. Qualifying bidders whose bids were not in the winning range may still receive a contract offer from CMS if one of the winning bidders decides not to become a contract supplier. Bidders whose bids were disqualified because their bids did not meet the requirements established in the regulations or the request for bids will receive a letter informing them of the reason(s) for disqualification. CMS is continuing with steps for a July 1, 2008 implementation of Round One, which applies to Competitive Bidding Areas (CBAs) centered around Charlotte, Cincinnati, Cleveland, Dallas, Kansas City, Miami, Orlando, Pittsburg, Riverside and San Juan.
The current Medicare fee schedule payment amounts will continue for beneficiaries who do not reside in the first round CBAs and for items that are not subject to the Medicare DMEPOS Competitive Bidding Program.
- Read the CMS press release.
- Obtain a CMS Fact Sheet.
Find here the payment amounts in each Round One CBA for enteral nutrients and other product categories.