Competitive Bidding Program areas
DMEPOS Competitive Bidding
Under the program, a competition among suppliers who operate in a particular competitive bidding area is conducted. Suppliers are required to submit a bid for selected products. Not all products or items are subject to competitive bidding. Bids are submitted electronically through a web-based application process. Bids are evaluated based on the supplier’s eligibility, its financial stability and the bid price. Contracts are awarded to the Medicare suppliers who offer the best price and meet applicable quality and financial standards. Contract suppliers must agree to accept assignment on all claims for bid items and will be paid the single payment amount. The amount is derived from the median of all winning bids for an item.
Medicare Competitive Bidding Program for DMEPOS Contracts in 2017
All bids made by contract suppliers must meet CMS guidelines for quality, licensing regulations and certification by a CMS-approved organization. There are 534 locations serving Medicare beneficiaries in the contract bidding areas, and the Centers for Medicare and Medicaid Services has already executed 182 contracts, 92 percent of which have been submitted for 2017. The bid evaluation guarantees enough supplies to meet beneficiary demands. Thirty percent of the program must contain small suppliers with a gross revenue of $3.5 million or less.
The competitive bidding demonstration
If you are already renting equipment when the competitive bidding program starts in your area, you can keep using your current supplier if it becomes a contract supplier or if it chooses to become a grandfathered supplier. Grandfathered suppliers are non-contract suppliers who agree to continue renting you equipment until your rental period ends. Like contract suppliers, they cannot charge you more than the 20%