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Medical Coding News Archives

Contracts Awarded under Medicare’s Competitive Bidding Program for DMEPOS

April 19, 2013:

Karen H. Kachur, RN, CPC

On April 9, 2013, the Centers for Medicare and Medicaid Services (CMS) awarded 13,126 competitive bidding program contracts to an additional 799 suppliers as part of round 2 of the Medicare Durable Medical Equipment, Prosthetics, Orthotics, and Supplies (DMEPOS) Competitive Bidding Program. The contracts, which are effective July 1, 2013, allow these suppliers to furnish oxygen, wheelchairs, and electric scooters to Medicare recipients in 91 districts nationwide. For the round 2 bids, the agency received 48,424 bids from 2,641 suppliers. Approximately 63 percent of the suppliers selected for round 2 are small suppliers, defined as having gross revenues of $3.5 million or less. The round 2 suppliers have nearly 3,000 sites available to support Medicare beneficiaries in the designated bidding areas.

Also effective July 1, 2013, the agency named an additional 18 suppliers out of the 245 bids received to furnish mail-order diabetic testing supplies at equitable bid prices. The National Mail-order Program suppliers have 52 locations to supply diabetic testing supplies to beneficiaries’ homes.

All contract suppliers are required to be accredited and to conform to all necessary requirements for licensing, financial requirements, and Medicare enrollment regulations.

Based on bids submitted by these suppliers, beneficiaries and Medicare will see prices, on average, 45 percent lower than Medicare currently pays for the same items included in the round 2 areas and 72 percent lower on mail-order diabetic testing supplies nationwide.

So far, the competitive bidding program has been successful in the nine areas it has put into effect, realizing a savings of $202 million in the initial year. It is further projected to yield a savings of approximately $25.7 billion between 2013 and 2022. It is anticipated that Medicare beneficiaries will save approximately $17.1 billion in lower premium and coinsurance payments.


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