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Home Health & Hospice Week

Industry Notes:

Bidding Program To Cut DME Payments By One-Third

Published on Tue Oct 12, 2010

Bidding set to expand next year, CMS confirms. Round one of competitive bidding is expected to cut Medicare's payments for durable medical equipment bid items by 32 percent, the Centers for Medicare & Medicaid Services says in a release about the program slated to begin in nine areas Jan. 1. Bidding will strip more than $17 billion from Medicare's DME spending over 10 years, CMS crows. It will also reduce beneficiary spending by $11 billion, CMS estimates. CMS has awarded 1,217 DMEPOS competitive bidding program contracts to 356 suppliers, the agency says. The contract suppliers have 662 locations. "Fully 97 percent of contracts were awarded to suppliers already established in the competitive bidding area, the product category, or both," CMS maintains. "Each of these contract suppliers has met our stringent standards, so beneficiaries can be assured they will receive their equipment and supplies from legitimate and quality suppliers at prices [...]
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