Under the upcoming DMEPOS competitive bidding program, only suppliers who are successful bidders will be eligible to furnish certain categories of DMEPOS to Medicare beneficiaries in certain geographic areas (with very limited exceptions), and they will be paid based on the median of the winning suppliers’ bids for each of the selected items in the region, rather than the Medicare fee schedule or supplier bid amount. On July 2, 2010, CMS announced that payment amounts under the Round 1 rebid of the DMEPOS competitive bidding program will average 32% below the Medicare DMEPOS fee schedule amounts. The weighted average savings by product category available after the jump.

Product Category Avg Savings
Oxygen, Oxygen Equipment, and Supplies 31%
Standard Power Wheelchairs, Scooters, and Related Accessories 23%
Complex Rehabilitative Power Wheelchairs & Accessories (Group 2 only) 14%
Mail-Order Diabetic Supplies 56%
Enteral Nutrients, Equipment and Supplies 28%
CPAP Devices, Respiratory Assist Devices, & Related Supplies/ Accessories 34%
Hospital Beds and Related Accessories 36%
Walkers and Related Accessories 33%
Support Surfaces (Miami-Ft. Lauderdale-Pompano Beach, FL only) 49%

Round 1 rebid prices are effective January 1, 2011 in nine designated competitive bidding areas. Reed Smith has been reporting on developments associated with the DMEPOS competitive bidding program.