The Centers for Medicare & Medicaid Services (CMS) published a new proposed rule that would require durable medical equipment, prosthetics, orthotics and supplies (DMEPOS) suppliers to submit a $100,000 surety bond to participate in the Remote Item Delivery (RID) portion of the Medicare competitive bidding program (CPB). The current surety bond amount is $50,000. The proposed rule is open for public comment through June 1.
Traditionally, most competitive bidding areas (CBAs) have been confined to a single metropolitan statistical area within one state. The proposed rule says that competition for items included in RID may involve larger, possibly nationwide, CBAs. “To discourage DMEPOS suppliers from submitting non-serious or disingenuous bids and to ensure genuine commitment from suppliers awarded contracts under a RID CBP, we propose requiring one bid surety bond at the maximum allowable amount of $100,000….
“This higher amount would also provide a stronger incentive for suppliers bidding on a RID CBA to submit bona fide bids and accept contract offers, thereby supporting the core objective of the DMEPOS CBP to reduce the amount Medicare pays for competitively bid DMEPOS and bring payment amounts more in line with those of a competitive market,” the proposed rule said.
The $50,000 surety bond amounts related to competitive bidding would remain in place “for all non-RID competitions.”
CMS also said the first phase of the Round 2028 DMEPOS CBP bidder education initiative, including the bidding process, eligibility requirements, and key program changes will begin soon.
To read the proposed rule, “Medicare Program; Inpatient Rehabilitation Facility Prospective Payment System for Federal Fiscal Year 2027 and Updates to the IRF Quality Reporting Program,” visit the Federal Register.
