DMEPOS Bidding Contract Offers in the Mail

The Centers for Medicare & Medicaid Services (CMS) has begun mailing contract offers to winning bidders of the Medicare Durable Medical Equipment, Prosthetics, Orthotics, and Supplies (DMEPOS) Competitive Bidding Program. The first round of the program is scheduled to begin Jan. 1, 2011 for contract suppliers and beneficiaries in nine areas of the country. CMS says it plans to announce the contract suppliers in September.

Rotech Healthcare Inc. announced July 12 that is has accepted 17 contracts awarded by CMS in the Round One Rebid, according to Yahoo Business Wire. All new contracts will be for a three-year term.

As part of the first round of the Competitive Bidding Program, Medicare beneficiaries in Charlotte, N.C., Cincinnati, Cleveland, Dallas, Kansas City, Miami, Orlando, Pittsburgh, and Riverside, Calif. who use certain medical equipment and supplies will see an average savings of about 32 percent off the current cost of those items, according to CMS.

To take advantage of these savings, beneficiaries may have to choose a new DMEPOS supplier. Non-contracted suppliers may, however, elect to continue furnishing certain rental medical and oxygen equipment items to Medicare beneficiaries as “grandfathered” suppliers.

Round One Rebid of the Competitive Bidding Program includes the following items:

  • Oxygen, Oxygen Equipment, and Supplies
  • Standard Power Wheelchairs, Scooters, and Related Accessories
  • Complex Rehabilitative Power Wheelchairs and Related Accessories (Group 2 only)
  • Mail-Order Diabetic Supplies
  • Enteral Nutrients, Equipment and Supplies
  • Continuous Positive Airway Pressure (CPAP) Devices, Respiratory Assist Devices (RADs), and Related Supplies and Accessories
  • Hospital Beds and Related Accessories
  • Walkers and Related Accessories
  • Support Surfaces (Group 2 mattresses and overlays in Miami-Ft. Lauderdale-Pompano Beach, Fla. only)

The Competitive Bidding Program is not, however, without opposition. U.S. Rep. Kendrick Meek is trying to stop the program before it begins “because it would allow illegitimate and inexperienced companies to get into the game,” the St. Petersburg Times reports.

Additional information about the Medicare DMEPOS Competitive Bidding Program is available on the CMS website.

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