Medicare Competitive Bidding and MED Group Competitive Bidding Institute
The DMEPOS Competitive Bidding Program was mandated by Congress through the Medicare Prescription Drug, Improvement, and Modernization Act of 2003 (MMA). The statute requires that Medicare replace the current fee schedule payment methodology for selected Durable Medical Equipment, Prosthetics, Orthotics and Supplies (DMEPOS) items with a competitive bid process. The intent is to improve the effectiveness of the Medicare methodology for setting DMEPOS payment amounts, which will reduce beneficiary out-of-pocket expenses and save the Medicare program money while ensuring beneficiary access to quality items and services.
Under the program, a competition among suppliers who operate in a particular Competitive Bidding Area (CBA) is conducted. Suppliers are required to submit a bid for selected products. Not all products or items are subject to competitive bidding. Bids are submitted electronically through a web-based application process and required documents are mailed. Bids are evaluated based on the supplier’s eligibility, its financial stability and the bid price. Contracts are awarded to the Medicare suppliers who offer the best price and meet applicable quality and financial standards. Contract suppliers must agree to accept assignment on all claims for bid items and will be paid the bid price amount. The amount is derived from the median of all winning bids for an item.
Round 1 of Competitive Bidding began in 9 CBAs in 9 product categories on January 1, 2011. Round 2 of Competitive Bidding will begin approximately the summer of 2013. More information on each of the Rounds of Competitive Bidding are included under the appropriate tab. Round 2 Recompete will begin July 1, 2016 along with Round 1 (recompete of areas) beginning January 1, 2017.
MED Group Competitive Bidding Institute
DME Providers are facing decisions that will profoundly affect their future. The MED Group Competitive Bidding
Institute is a comprehensive program created to assist MED Members through the competitive bidding process
and the changes that MED Members will need to make to prepare their companies to compete in “The New
Environment” that Competitive Bidding will bring to the DME industry. The goal of this program is to provide
MED Members with the tools and services they will need to guide their companies through the competitive
bidding program. The MED Group Competitive Bidding Institute will help with the following:
- "Submitting a Bid" Instruction
- Evaluating Your Business
- Operational Efficiencies
- Education and Training for staff
- Marketing Tools
- Manufacturer Support
- Networking with Peers
- Revenue Enhancement/Diversification Opportunities