Your Guide to Medicare's Durable Medical Equipment, Prosthetics, Orthotics, and Supplies (DMEPOS) Competitive Bidding Program


Book Description

Medicare's Competitive Bidding Program for durable medical equipment, prosthetics, orthotics, and supplies (DMEPOS) changes the amount Medicare pays for certain DMEPOS items and makes changes to which suppliers Medicare will pay to supply these items to you. The first phase of the program is already in effect in 9 areas of the country. Starting July 2013, Medicare is scheduled to expand the competitive bidding program to more areas. The program replaces the outdated, inflated fee-schedule prices Medicare is currently paying with lower, more accurate prices. Under this program, suppliers submit bids to provide certain medical equipment and supplies at a lower price than what Medicare pays for these items now. Medicare uses these bids to set the amount it will pay for those equipment and supplies under the competitive bidding program. Qualified, accredited suppliers with winning bids are chosen as Medicare contract suppliers. The program: Helps you and Medicare save money; Ensures that you have access to quality medical equipment, supplies, and services from suppliers you can trust; Helps limit fraud and abuse in the Medicare Program. If you have Original Medicare, live in one of the competitive bidding areas, and use equipment or supplies included under the program (or get the items while visiting a competitive bidding area), you generally must use Medicare contract suppliers if you want Medicare to help pay for the item. If you live in one of the areas where the program is expanding and you're renting oxygen or certain other durable medical equipment (DME) at the time the program starts, you'll be able to continue renting these items from your current supplier if that supplier becomes a contract supplier or decides to participate in the program as a "grandfathered" supplier. If you live in (or get these items while visiting) these areas and don't use a Medicare contract or a grandfathered supplier, Medicare won't pay for the item, and you may have to pay full price. It's important to know if you're affected by this program to make sure Medicare will help pay for your item and to avoid any disruption of service. The competitive bidding program applies to Original Medicare only. If you're enrolled in a Medicare Advantage Plan (like an HMO or PPO), your plan will notify you if your supplier is changing. If you're not sure, contact your plan. Also available in Spanish.




Medicare: Issues for Manufacturer-Level Bidding for Durable Medical Equipment


Book Description

In 2009, Medicare spent approx. $8.1 billion on durable medical equipment (DME), prosthetics, orthotics, and related supplies for 10.6 million beneficiaries. DME includes items such as wheelchairs, hospital beds, and walkers. Medicare beneficiaries typically obtain DME items from suppliers, who submit claims for payment for these items to Medicare on behalf of beneficiaries. The Centers for Medicare & Medicaid Services (CMS), an agency within the Dept. of Health and Human Services (HHS), has responsibility for administering the Medicare program. Medicare and its beneficiaries -- through their out-of-pocket costs -- have sometimes paid higher than market rates for various medical equipment and supplies. To achieve Medicare savings for DME and to address DME fraud concerns, Congress required CMS to phase in a competitive bidding program (CBP) for DME suppliers in selected competitive bidding areas (CBA). In CBP, suppliers submit bid prices in the amounts they are willing to accept as payment to provide DME items to Medicare beneficiaries. CMS then enters into contracts with select DME suppliers to provide DME items at the prices determined by CBP. In contrast to CBP's supplier-level approach, some health care purchasers use a manufacturer-level approach to buy DME items directly from DME manufacturers to obtain savings by leveraging their purchasing power. CMS has not been required to develop a manufacturer-level approach. This report provides information on health care purchasers that currently use a manufacturer-level approach and on issues that would need to be addressed if CMS implemented such an approach. It describes (1) efforts used by some non- Medicare purchasers to reduce DME spending by contracting with DME manufacturers or using purchasing intermediaries, and (2) issues that CMS might face if required to implement a DME manufacturer-level approach with broad authority to do so. Figures and tables. This is a print on demand report.










Medicare


Book Description

To achieve Medicare savings for durable medical equipment (DME), the Medicare Prescription Drug, Improvement, and Modernization Act of 2003 required that the Centers for Medicare & Medicaid Services (CMS) implement the competitive bidding program (CBP) for certain DME. The first completed CBP round -- the round 1 rebid -- operated in nine competitive bidding areas. CMS reported total savings of more than $580 million at the end of the round 1 rebid's 3-year term due to lower payments and decreased utilization. This report examines (1) bidding process results for the round 1 recompete, round 2, and national mail-order program, and how they compare to the concluded round 1 rebid results; and (2) how single payment amounts (SPAs) for selected Healthcare Common Procedure Coding System (HCPCS) codes common to the round 1 rebid, round 1 recompete, round 2, and national mail-order program compare. Tables and figures. This is a print on demand report.







Medicares Durable Medical Equipment Competitive Bidding Program


Book Description

Medicare's Durable Medical Equipment Competitive Bidding Program : how are small suppliers faring? : hearing before the Subcommittee on Healthcare and Technology of the Committee on Small Business, United States House of Representatives, One Hundred Twelfth Congress, second session, hearing held September 11, 2012.







Medicare


Book Description

Medicare pays for most DMEPOS through fee schedules based on suppliers' previous charges to Medicare. The fee schedule payment is generally equal to 80 percent of the lesser of either the supplier's actual charge or the Medicare fee schedule for a particular item or service. In general, Medicare beneficiaries are responsible for paying the supplier the remaining 20 percent—the coinsurance.