A new method of paying for some items of medical equipment and supplies means that Medicare beneficiaries who use those items in 10 select regions of the country will see average savings of 26 percent, according to a March 21 press release from the Centers for Medicare and Medicaid Services (CMS). The savings will be realized through the first round of a new competitive bidding program that will be used to price certain durable medical equipment, prosthetics, orthotics, and supplies.
The first round of the program begins July 1, 2008, in Charlotte, N.C.; Cincinnati; Cleveland; Dallas; Kansas City; Miami; Orlando, Fla.; Pittsburgh; Riverside, Calif.; and San Juan, P.R. Suppliers that wished to participate in the program submitted bids last year. CMS will announce the contract suppliers once all contracts have been executed.
Because of these savings, beneficiaries living in the 10 first round communities will be choosing a new Medicare contract supplier. Medicare will work with local partners to inform beneficiaries about the changes. Suppliers that are not contract suppliers may continue to provide certain rented DME equipment and oxygen and oxygen equipment for existing clients in the Medicare program if they elect to continue furnishing the items as “grandfathered” suppliers. Read the announcement.
