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CMS Launches DMEPOS Competitive Bidding Program

The Centers for Medicare and Medicaid Services (CMS) announced this week the new single payment amounts and began sending contract offers to successful bidders for the recompete Durable Medical Equipment, Prosthetics, Orthotics, and Supplies (DMEPOS) Competitive Bidding Program. These contracts, which will go into effect on July 1, 2016 and will help to set payment rates and save money for both beneficiaries and taxpayers.

The DMEPOS Competitive Bidding Program was mandated by Congress through the Medicare Prescription Drug, Improvement, and Modernization Act of 2003 (MMA). The statute requires that Medicare replace the current fee schedule payment methodology for selected DMEPOS items with a competitive bid process.

Under the program, a competition among suppliers who operate in a particular competitive bidding area is conducted. Suppliers are required to submit a bid for selected products. Not all products or items are subject to competitive bidding. Bids are evaluated based on the supplier’s eligibility, its financial stability and the bid price. Contracts are awarded to the Medicare suppliers who offer the best price and meet applicable quality and financial standards.

More information is available at the DMEPOS Competitive Bid Website

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