CMS has issued a transmittal directing Medicare Durable Medical Equipment Medicare Administrative Contractors (DME MACs) to establish programming to allow payment for grandfathered items furnished by a non-contract Medicare Advantage supplier under the DMEPOS Competitive Bidding Program under certain circumstances. Likewise, CMS has instructed the DME MACs to allow payment for certain grandfathered oxygen equipment claims submitted by a non-contract supplier after the start of the DMEPOS Competitive Bidding Program. CMS also has released a “partner program preview” document entitled “Medicare’s DMEPOS Competitive Bidding Program: Supplier Quality Standards and Beneficiary Protections.” CMS is expected to announce single payment amounts under the Round 1 Rebid in June 2010 and then begin the contracting process with winning bidders, with the program set to be implemented January 1, 2011.