On December 5, 2011, CMS opened the registration process for suppliers interested in participating in Round 2 of the Medicare DMEPOS competitive bidding program and/or the national mail order bidding for diabetic testing supplies. By way of background, under competitive bidding, only suppliers which are winning bidders, meet licensing and other standards, and enter into a contract with CMS may furnish selected categories of DMEPOS to Medicare beneficiaries in the competitive bidding areas (CBAs), with very limited exceptions. Contract suppliers are paid based on winning bids in the CBA, rather than the DMEPOS fee schedule. The Round 1 “Rebid” went into effect January 1, 2011 in nine CBAs and nine product categories. Round 2 will take place in 100 CBAs, covering 91 metropolitan statistical areas. As previously reported, Round 2 will include the following product categories:
- Oxygen Supplies and Equipment
- Standard (Power and Manual) Wheelchairs, Scooters, and Related Accessories (note that CMS has announced it is removing ultra lightweight manual wheelchairs, gimbaled ventilator trays, and push activated power assist devices from Round 2, although these items may be included in a future round)
- Enteral Nutrients, Equipment and Supplies
- Continuous Positive Airway Pressure (CPAP), Respiratory Assist Devices (RADs), and Related Supplies and Accessories
- Hospital Beds and Related Accessories
- Walkers and Related Accessories
- Support Surfaces (Group 2 mattresses and overlays)
- Negative Pressure Wound Therapy (NPWT) Pumps and Related Supplies and Accessories
As noted, CMS also will be conducting a national mail-order competition for diabetic testing supplies concurrent with the Round 2 competition. Registration is the first key step in Round 2; suppliers that do not register and receive a password will not be able to submit bids. Registration closes on February 9, 2012. Other key target dates in the Round 2/national mail order bidding process include the following:
1/30/2012 — CMS opens 60-day bid window for Round 2 and National Mail-order Competitions
2/29/2012 — Covered Document Review Date for bidders to submit financial documents
3/30/2012 — Bid window closes
Fall 2012 — CMS announces single payment amounts, begins contracting process
Spring 2013 — CMS announces contract suppliers, begins contract supplier education campaign
July 1, 2013 — Implementation of Medicare DMEPOS Competitive Bidding Program Round 2 and National Mail-order Competition contracts and prices
CMS and the Competitive Bidding Implementation Contractor (CBIC) have begun the first stage of their supplier educational campaign. A variety of information has been posted at the CBIC website, including the request for application and bid forms, a new National Mail-Order 50 Percent Compliance Form, information on required financial documents, and a variety of fact sheets on such issues as change of ownership, financial measures, contract supplier obligations and eligibility requirements, capacity and expansion plans, the national mail-order competition for diabetic supplies, specialty suppliers (SNF/NF), prescriptions for specific brand/mode of delivery, bona fide bids, and subcontracting rules. Reed Smith also has been compiling information on the competitive bidding program. Suppliers interested in bidding are reminded to ensure their enrollment files at the National Supplier Clearinghouse are up-to-date; that they have all required state licenses; and that they are accredited for any product category for which they will bid.