CMS announced on Jan. 8 the 70 new areas across the nation that will be part of the second phase of a competitive bidding program designed to help lower Medicare beneficiaries’ out-of-pocket costs and improve their access to certain durable medical equipment, prosthetics, orthotics, and supplies (DMEPOS), including standard and complex power wheelchairs, walkers, oxygen supplies and equipment, hospital beds, and certain devices. Ten areas currently participate in the program.
Under the competitive bidding program, suppliers that wish to offer certain items and services to people with Medicare will have to submit bids to CMS, indicating the prices at which they are willing to supply these items to beneficiaries--prices that CMS believes will be closer to the prices charged in the current market. Once the competitive bidding program is fully implemented nationally, it is expected to save beneficiaries and Medicare $1 billion annually.
CMS expects to begin the second round of pre-bidding activities, such as announcing the specific zip codes that constitute the competitive bidding areas, in spring 2008, with the bidding period planned to begin in summer 2008 and pricing expected to go into effect in July 2009. Access the web page.
