CMS Announces Round Two Sites and Products Under DMEPOS Competitive Bidding Program

JANUARY 8, 2008

The Centers for Medicare and Medicaid Services (CMS) today announced the 70 new areas that will be part of the second phase of the competitive bidding program for durable medical equipment, prosthetics, orthotics, and supplies (DMEPOS). Payments in the 10 MSAs under phase 1 of the program begin July 1, 2008. CMS expects payments for 8 product categories, listed below, in 70 additional MSAs to be subject to the competitive bidding process in the summer of 2009.

Suppliers must meet quality standards established by CMS and be accredited by one of ten organizations chosen by Medicare in order to participate in the competitive bidding program. All DMEPOS suppliers must obtain an initial accreditation by September 30, 2009.

CMS expects to begin pre-bidding activities of the second round, such as announcing the specific zip codes that constitute the CBAs, specific items in each product category, and bidder education and registration for user IDs and passwords, in the spring of 2008. The bidding period is expected to run 60 days and is planned to begin in the summer of 2008. A more detailed timeline will be provided as the pre-bidding activities begin.

For these 70 additional MSAs, the competitive bidding program will include 8 of the top DMEPOS product categories including:
1. Oxygen Supplies and Equipment
2. Standard Power Wheelchairs, Scooters, and Related Accessories
3. Complex Rehabilitative Power Wheelchairs and Related Accessories
4. Enteral Nutrients, Equipment, and Supplies
5. Continuous Positive Airway Pressure (CPAP) Devices, Respiratory Assist Devices (RADs), and Related Supplies and Accessories
6. Hospital Beds and Related Accessories
7. Negative Pressure Wound Therapy (NPWT) Pumps and Related Supplies and Accessories
8. Walkers and Related Accessories

Additional information on the DMEPOS competitive bidding program, including the list of 70 phase two sites, is available at the following Web site: http://www.cms.hhs.gov/CompetitiveAcqforDMEPOS .