325 Picked for First Round of DMEPOS Program

The Centers for Medicare & Medicaid Services (CMS) released the names of the 325 suppliers that have signed contracts with Medicare to provide certain medical equipment and supplies to beneficiaries in ten communities across the United States at significantly lower prices than they are paying now.

"We are pleased that Medicare beneficiaries living in the ten first-round communities will continue to receive high-quality service and supplies from the suppliers participating in Medicare's competitive bidding program," CMS Acting Administrator Kerry Weems said. "All of these contract suppliers have met our stringent standards, so beneficiaries can be assured they receive their equipment and supplies from legitimate suppliers."

The new competitive bidding program goes into effect Tuesday, July 1, in ten communities. This program uses the local competitive marketplace to lower the costs for certain durable medical equipment, prosthetics, orthotics, and supplies (DMEPOS) for Medicare beneficiaries who use Medicare-contracted suppliers to obtain medical items and supplies. Because beneficiaries pay 20 percent coinsurance on the cost of DMEPOS, they will directly benefit from the savings.

Based on bids submitted by these suppliers, beneficiaries and Medicare will see prices 26 percent lower on average than Medicare currently pays for the same items. CMS received bids from 1,005 suppliers. There were nearly 6,200 bids for one or more product categories in competitive bidding areas (CBA) where the new program is being implemented. CMS offered contracts to 23 percent of suppliers that submitted bids. These suppliers were in the winning price range and met quality and financial standards and disclosure requirements.

Sixty-one percent of the bids submitted were priced higher than the winning range, and just over half of these high-priced submissions were disqualified because they failed to meet other bid requirements. The remaining 16 percent of bids would have been in the winning price range had they not been disqualified for other reasons, CMS said.

To participate in the competitive bidding program, suppliers are now required to meet Medicare's quality and financial standards that ensure participating suppliers are viable companies able to meet the needs of Medicare beneficiaries and the terms of their contracts with Medicare. In addition to those requirements, which were developed with input from suppliers, a Medicare-contracted supplier must:

Be enrolled in and be approved--or accredited--by Medicare based on the specific products and services they offer. Be financially sound--as demonstrated by common standards in use by the financial community. Fill orders from their own inventory, or contract with other companies that can fill orders for beneficiaries. Provide access for beneficiaries to get the items they need. Provide high-quality customer service by ensuring that delivery of products is timely and complaints are resolved quickly and appropriately. "Medicare-contracted suppliers submitted bids affirming they will ensure that beneficiaries receive necessary equipment and supplies with a high level of customer service," Weems said. "Medicare has the tools to ensure that the suppliers, as well as companies with which the suppliers subcontract, meet the needs of beneficiaries to guarantee continued beneficiary access to medical equipment and supplies. CMS may seek to terminate contracts with suppliers that don't meet these requirements."

As part of the competitive bidding program, suppliers submitted bids to CMS to supply certain items to beneficiaries that reflect the prices charged in the marketplace, which are lower than the prices under the current Medicare fee schedule. Bids were evaluated to ensure there would be a sufficient number of suppliers, including small suppliers, to meet the needs of beneficiaries living in the CBAs, CMS said. Small suppliers were considered those with gross revenues of $3.5 million or less and make up approximately 50 percent of the suppliers that accepted contracts in this first round of the program. Suppliers that are not contract suppliers for the first round of DMEPOS competitive bidding program may be able to subcontract with winning bidders for certain items and may bid in the second and future rounds.

To take advantage of the lower prices for the items that were part of the competitive bidding program, Medicare beneficiaries living in one of the CBAs who have ongoing need for a DMEPOS supplier may need to choose a new supplier if their current supplier is not a contract supplier and they wish to have Medicare continue to cover their equipment and supplies. A beneficiary may, in some situations, also be able to continue to receive certain items from a grandfathered supplier. Grandfathered suppliers are non-contract suppliers that provide certain rented equipment under the terms of the program.

Consumers, physicians, and other providers can find a list of Medicare contract suppliers in the ten initial areas of the program at www.medicare.gov (under "Search Tools" select "Find Suppliers of Medical Equipment in Your Area"); or 800.633.4227 (800.MEDICARE); TTY users call 877.486.2048.

325 Picked for First Round of DMEPOS Program

APO Hires Manager, CPed

CMS Extends 2nd Round Deadline

CMS Extends 2nd Round Deadline

RECENT NEWS

Get unlimited access!

O&P JOBS

Pediatric Orthotic & Prosthetic Clinician Department of Orthopaedic Surgery – UCSF

Prosthetic Technician

Certified Prosthetist Opportunity in Wilmington, NC

Are you sure want to unlock this post?

Are you sure want to cancel subscription?

The most important industry news and events delivered directly to your inbox every week.

Welcome Back!

Retrieve your password

Are you sure want to unlock this post?

Are you sure want to cancel subscription?

325 Picked for First Round of DMEPOS Program

Support authors and subscribe to content

Subscribe

Related posts:

APO Hires Manager, CPed

CMS Extends 2nd Round Deadline

CMS Extends 2nd Round Deadline

RECENT NEWS

Get unlimited access!

O&P JOBS

Pediatric Orthotic & Prosthetic Clinician Department of Orthopaedic Surgery – UCSF

Prosthetic Technician

Certified Prosthetist Opportunity in Wilmington, NC

Login to your account

Reset Password

Signup to your Account

Are you sure want to unlock this post?

Are you sure want to cancel subscription?

Account Activation

The most important industry news and events delivered directly to your inbox every week.

Welcome Back!

Retrieve your password

Login to your account

Reset Password

Signup to your Account

Are you sure want to unlock this post?

Are you sure want to cancel subscription?

Account Activation