On January 16, 2009, the Centers for Medicare & Medicaid Services (CMS) published an interim final rule with comment period to implement the durable medical equipment, prosthetics, orthotics, and supplies (DMEPOS) competitive bidding provisions in the Medicare Improvements for Patients and Providers Act of 2008 (MIPPA). Among other things, the rule codifies MIPPA provisions: delaying implementation of bidding and requiring CMS to conduct a second Round 1 competition in 2009; establishing a process to provide feedback to suppliers on missing financial documentation; requiring bidders to disclose information regarding subcontractors; and exempting certain DMEPOS items from bidding. CMS also notes that it intends to require one, rather than three, years of financial records to be submitted with future bids. In addition, CMS invites comments on alternatives for diabetic supplies bidding, which will be the subject of future rulemaking. The rule is effective February 17, 2009, but CMS will accept comments on the rule until March 17, 2009. A Reed Smith analysis of the MIPPA DMEPOS competitive bidding provisions is available here. In a related development, CMS announced the appointment of new members of the Program Advisory and Oversight Committee (PAOC), which advises the agency on the competitive bidding program.