The Centers for Medicare & Medicaid Services (CMS) have issued the products and locations selected for the next round of Competitive Bidding for DME. The competitive bidding program in these next 70 Metropolitan Statistical Areas (MSAs) will apply to 8 of the top DMEPOS product categories based on criteria outlined in the final rule. All power mobility devices (standard and complex rehab power wheelchairs and POVs) and related accessories are again included in the second round of bidding. According to CMS the bidding process will begin in Winter 2008 with implementation scheduled for the Summer of 2009. These timeframes are not firm, as CMS is currently working with many different entities which could impact these tentative milestones.

The competitive bidding program, which is required by the Medicare Prescription Drug, Improvement & Modernization Act of 2003 (or MMA), will replace the current payment amounts, for the items being bid, under Medicare’s DMEPOS fee schedule with payment rates derived from the bidding process. Suppliers that wish to furnish competitively bid items in a CBA will be required to submit bids to furnish those items. Contracts will be awarded to a sufficient number of winning bidders in each CBA. The winning bids will be used to establish a single Medicare payment amount for each item.

Suppliers must be accredited or have applied for accreditation by May 14, 2008 to submit a bid for the second round of competitive bidding. CMS cannot accept a bid from any supplier that is not accredited or that has not applied for accreditation by May 14, 2008.

Suppliers will need to be accredited to be awarded a contract. The accreditation deadline for the second round of competitive bidding is October 31, 2008. Suppliers must be accredited before this date to be awarded a contract.