CMS has announced the single payment amounts for Round 1 2017 of the Medicare Durable Medical Equipment, Prosthetics, Orthotics, and Supplies (DMEPOS) competitive bidding program.  As previously reported, this round represents a recompete (with product category changes) of the current Round 1 Recompete contracts, which expire December 31, 2016.  Round 1 2017 contracts will apply from January 1, 2017 through December 31, 2018.

CMS stated that it will begin the process of extending 1,523 contract offers to 198 “winning” Round 1 2017 bidders with 603 locations.  The names of the suppliers have not been made public, but CMS anticipates announcing the contract suppliers this fall.  CMS notes that 97% of the offers are being extended to bidders that currently furnish items in the awarded area or within the product category.

CMS did not release data comparing the single payment amounts to current fee schedule payments.  At the same time, the agency notes that since implementation of competitive bidding on January 1, 2011, CMS has saved about $220 million per year in the nine Round 1 metropolitan statistical areas “due to competitive bidding and other CMS fraud, waste, and abuse initiatives.”  CMS continues to assert that its “data indicate that the program implementation is going smoothly with few inquiries or complaints and no negative beneficiary health outcomes.”