CMS Announces Next Phase in Medicare DMEPOS Competitive Bidding Program

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On December 11, 2014, CMS announced the bidding timeline for the Medicare Durable Medical Equipment, Prosthetics, Orthotics and Supplies (DMEPOS) Competitive Bidding Program Round 2 Recompete and National Mail-Order Recompete. CMS also launched a comprehensive bidder education program to ensure suppliers interested in bidding have timely access to assistance and information. The bidding window is scheduled to be open January 22, 2015 through March 25, 2015.

The DMEPOS Competitive Bidding Program (Program) was established by the Medicare Prescription Drug, Improvement, and Modernization Act of 2003 and expanded by the Affordable Care Act in 2010 in an effort to ensure appropriate Medicare payment rates for DMEPOS items and services. Under the Program, suppliers compete for Medicare contracts by submitting bids to provide certain items in competitive bidding areas. These competitions result in new, lower payment amounts that replace the traditional fee schedule Medicare payments for the bid items.

CMS is required to recompete contracts at least once every three years. The Round 2 Recompete involves seven product categories in 90 metropolitan statistical areas. The National Mail-Order Recompete for diabetic testing supplies extends to all parts of the United States.  

To read the CMS fact sheet and timeline, click here.

Reporter, Lauren S. Gennett, Atlanta, + 1 404 572 3592, lgennett@kslaw.com.

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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