CMS Announces Single Payment Amounts for DMEPOS Competitive Bidding

On March 20, 2008, the Centers for Medicare & Medicaid Services (CMS) announced in a Press Release that it completed the bid evaluation process and announced the single payment amounts for the 1st round of the Medicare durable medical equipment, prosthetics, orthotics and supplies (DMEPOS) competitive bidding program. 

According to CMS, the amounts that Medicare will pay for the 10 product categories in the 1st round of DMEPOS competitive bidding overall average 26 percent less than Medicare's previous payment amounts. CMS also reports that savings for beneficiary out-of-pocket costs and Medicare range from 14 percent on negative pressure wound therapy (NPWT) devices and accessories up to 43 percent on mail order diabetic supplies.  The 1st round of the DMEPOS competitive bidding program begins on July 1, 2008 in Charlotte, Cincinnati, Cleveland, Dallas, Kansas City, Miami, Orlando, Pittsburgh, Riverside and San Juan. 

CMS also reports that it is notifying all bidders of their bid results and that winning bidders will be mailed contracts.  Further, bidders whose bids were disqualified because they did not meet the requirements will receive a letter informing them of the reason(s) for disqualification. Finally, when all contracts are finalized this spring, CMS expects to make the list of contract suppliers available on the DMEPOS competitive bidding program page of the CMS website.