CMS Publishes New Claims Manual Chapter on DMEPOS Competitive Bidding

On May 9, 2008, the Centers for Medicare & Medicaid Services (CMS) issued Transmittal 1502 adding a new Chapter 36 to the Medicare Claims Processing Manual (CMS Pub. 100-04). 

In the new Chapter 36, CMS provides Medicare contractors with instructions regarding the Medicare durable medical equipment, prosthetics, orthotics and supplies (DMEPOS) competitive bidding program, including CMS policy on grandfathered suppliers and items, and the transfer of title of capped rental DME items, oxygen and oxygen equipment. CMS reports that subsequent installments of Chapter 36 will contain additional instructions, information about the DMEPOS competitive bidding program, and possibly revisions to clarify language or add additional information on policy. CMS has also posted sample notification letters on the Competitive Bidding Implementation Contractor website, which suppliers may use to notify Medicare beneficiaries whether or not they elect to become a grandfathered supplier.