DMEPOS Competitive Bidding Round 2 Update

September 27, 2011

The Medicare Durable Medical Equipment, Prosthetics, Orthotics, and Supplies (DMEPOS) Competitive Bidding Process was mandated by Congress through the Medicare Prescription Drug, Improvement, and Modernization Act of 2003, which replaced the current fee schedule payment procedure for DMEPOS items with a competitive bidding process. The purpose of the statute is to set DMEPOS payment amounts in a more effective manner, which will result in saving the Medicare program money and reducing beneficiary out-of-pocket expenses.

Bids closed for Round 1 of the DMEPOS competitive bidding program on December 21, 2009. In November of 2010 CMS announced the winners of Round 1 and in January of this year implemented the contracts.

This past summer, the Centers for Medicare and Medicaid Services (CMS) began its pre-bidding supplier awareness program. For this fall, CMS will announce the bidding schedule, begin the bidder education program, and commence the bidder registration period to obtain user ID and passwords. The bidding will begin in winter 2012.

In order for suppliers to participate in the bidding process, they must have up-to-date contact information filed with the National Supplier Clearinghouse, all required state licenses filed with NSC for the product category they intend to bid on, and must be accredited for all items in that product category. Click here for further details regarding the bidding requirements for the competitive bidding process.

Detroit is one of the cities scheduled for Round 2 of competitive bidding this winter. If you need assistance with fulfilling any of the requirements necessary to participate in the competitive bidding process, or have any other health law questions, please contact a Wachler & Associates attorney at 248-544-0888.