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Home News

CMS Provides Bidding Updates

by The O&P EDGE
June 5, 2009
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The Centers for Medicare & Medicaid Services (CMS) has released the following updates on competitive bidding to all providers of durable medical equipment, prosthetics, orthotics, and supplies:

The Medicare Improvements for Patients and Providers Act of 2008 (MIPPA), enacted on July 15, 2008, made limited changes to the Medicare Durable Medical Equipment, Prosthetics, Orthotics and Supplies (DMEPOS) Competitive Bidding Program, including a requirement that competition to rebid Round One occur in 2009. On January 16, 2009, the Centers for Medicare & Medicaid Services (CMS) issued an interim final rule with comment period that incorporates into regulations only those provisions of MIPPA related to the DMEPOS competitive bidding program that are self-implementing and necessary to conduct the Round One rebid competition in 2009. That rule became effective on April 18, 2009. To ensure that suppliers have ample time to prepare for the competition, CMS announced the following next steps for the program:

Summer 2009

  • CMS Announces Bidding Schedule/Schedule of Education Events
  • CMS Begins Bidder Education Campaign
  • Bidder Registration Period to Obtain User IDs and Passwords Begins
  • Bidding Begins

Fall 2009

  • If you are a supplier interested in bidding, prepare now – don’t wait!

Update Your NSC Files: DMEPOS supplier standard # 2 requires all suppliers to notify the National Supplier Clearinghouse (NSC) of any change to the information provided on the Medicare enrollment application (CMS-855S) within 30 days of the change. DMEPOS suppliers should use the 3/09 version of the CMS-855S and should review and update:

  • The list of products and services found in section 2.D;
  • The Authorized Official(s) information in sections 6A and 15; and
  • The correspondence address in section 2A2 of the CMS-855S.

This is especially important for suppliers who will be involved in the Medicare DMEPOS Competitive Bidding Program. These suppliers must ensure the information listed on their supplier files is accurate to enable participation in this program. Information and instructions on how to submit a change of information may be found on the NSC website, www.palmettogba.com/nsc, and by following this path: Supplier Enrollment/Change of Information/Change of Information Guide.

Get Licensed: Suppliers submitting a bid for a product category in a competitive bidding area (CBA) must meet all DMEPOS state licensure requirements and other applicable state licensure requirements, if any, for that product category for every state in that CBA. Prior to submitting a bid for a CBA and product category, the supplier must have a copy of the applicable state licenses on file with the NSC. As part of the bid evaluation we will verify with the NSC that the supplier has on file a copy of all applicable required state license(s).

Get Accredited: DMEPOS suppliers must obtain accreditation by the September 30, 2009, deadline or risk having their Medicare Part B billing privileges revoked on October 1, 2009. Accreditation takes an average of six months to complete. It is very important for DMEPOS suppliers to contact an accreditation organization right away to obtain information about the accreditation process and submit an application. Suppliers must be accredited for a product category in order to submit a bid for that product category. CMS cannot contract with suppliers that are not accredited by a CMS-approved accreditation organization. Further information on the DMEPOS accreditation requirements along with a list of the accreditation organizations and those professionals and other persons exempted from accreditation may be found at the CMS website, www.cms.hhs.gov/MedicareProviderSupEnroll/01_Overview.asp

Get Bonded: Certain suppliers will need to obtain and submit a surety bond by the October 2, 2009, deadline or risk having their Medicare Part B billing privileges revoked. Suppliers subject to the bonding requirement must be bonded in order to bid in the DMEPOS competitive bidding program. A list of sureties from which a bond can be secured is found at the Department of the Treasury’s “List of Certified (Surety Bond) Companies;” www.fms.treas.gov/c570/c570_a-z.html

For more information, visit www.cms.hhs.gov/dmeposcompetitivebid

Related posts:

  1. CMS Announces Competitive Bidding Final Rule, First MSAs
  2. Competitive Bidding: Can Small Suppliers Survive?
  3. An In-depth Look at BIPA Section 427: What It May Mean for the O&P Profession
  4. New Medicare Supplier Enrollment Rules Include Stiff Penalties
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