On January 30, 2012, the Centers for Medicare & Medicaid Services (“CMS”) announced the new, lower prices that will go into effect July 1, 2013 in the substantial expansion of the Durable Medical Equipment, Prosthetics, Orthotics and Supplier (“DMEPOS”) Competitive Bidding Program. The Competitive Bidding Program prices will replace Medicare’s existing fee schedule amounts in selected areas with prices based on suppliers’ bids. Medicare beneficiaries in 91 major metropolitan areas are expected to save an average of 45% for certain DMEPOS items as a result of these new prices.
The product categories for Round 2 are:
- Oxygen, oxygen equipment and supplies
- Standard (Power and Manual) wheelchairs, scooters and related accessories
- Enteral nutrients, equipment and supplies
- Continuous Positive Airway Pressure (“CPAP”) devices and Respiratory Assist Devices (RADs) and related supplies and accessories
- Hospital beds and related accessories
- Walkers and related accessories
- Negative Pressure Wound Therapy (“NPWT”) pumps and related supplies and accessories
- Support surfaces (Group 2 mattresses and overlays)
The average percentage savings, to both beneficiaries and Medicare, from the current fee schedule amount for each product category included in Round 2 are as follows:
| Oxygen, oxygen equipment & supplies | 41% |
| Standard (power and manual) wheelchairs, scooters & accessories | 36% |
| Enteral nutrients, equipment & supplies | 41% |
| CPAP/RAD & related supplies & accessories | 47% |
| Hospital beds & accessories | 44% |
| Walkers & accessories | 46% |
| Support surfaces (Group 2 mattresses & overlays) | 63% |
| NPWT pumps & related supplies & accessories | 41% |
A full list of the prices are available at www.dmecompetitivebid.com.
CMS will now begin mailing contract offers to winning bidders. 14,654 contract offers will be made to 867 Round 2 bidders. The winning suppliers have 3,109 locations to serve Medicare beneficiaries in the competitive bidding areas. CMS will offer 15 contracts for the national mail-order program; the national mail-order program winners have 48 locations. CMS expects to complete the contracting process in time to announce the contract suppliers in the spring of 2013. Bidders that are not offered contracts will be notified of the reasons why they did not qualify for the program when the contracting process is complete. Suppliers that are not contract suppliers for this round of the DMEPOS Competitive Bidding Program may bid in future rounds.
Should you have any questions, please contact:
Todd Selby at 317.977.1440 or tselby@wp.hallrender.com; or Kendra Conover at 317.977.1456 or kconover@wp.hallrender.com, or your regular Hall Render attorney.
