Medicare Implements Expanded Competitive Bidding Program

Medicare is entering the second phase of a competitive bidding program aimed at lowering the cost of durable medical equipment, prosthetics, orthotics, and supplies.

Nine product categories were included in the first phase of the program that started January 1, 2011. According the data maintained by the Center for Medicaid and Medicare Services (CMS), the initial phase yielded savings of 35% with no change in beneficiary health status.

Phase two will further the program by adding an additional 91 major metropolitan areas to the demonstration.

Competition begins this fall, and the new prices will be in effect on July 1, 2013.

“Today, we’re taking steps that will save Medicare, seniors, and taxpayers $28 billion over 10 years,” said CMS Administration Donald M. Berwick, M.D. “Medicare is paying much more than the private sector for equipment like wheelchairs and walkers. By expanding our successful competitive bidding program, we can ensure that Medicare pays a fair rate for these goods.”

The expanded Round Two categories of products are:

· Oxygen, oxygen equipment, and supplies;

· Standard (Power and Manual) wheelchairs, scooters, and related accessories (a new category that combines all mobility devices);

· Enteral nutrients, equipment, and supplies;

· Continuous Positive Airway Pressure (CPAP) devices and Respiratory Assist Devices (RADs) and related supplies and accessories;

· Hospital beds and related accessories;

· Walkers and related accessories;

· Negative Pressure Wound Therapy pumps and related supplies and accessories (new category);

· Support surfaces (Group 2 mattresses and overlays).

A list of ZIP codes included in Round Two and a list of the specific items in each product category are available on the website for the Competitive Bidding Implementation Contractor, www.dmecompetitivebid.com.