On Friday, Aug. 19, the Centers for Medicare & Medicaid Services (CMS) announced that it will expand the durable medical equipment, prosthetics, orthotics and supplies (DMEPOS) competitive bidding program, which is used to set prices for DME. Among the product categories for Round Two are continuous positive airway pressure (CPAP) devices and respiratory assist devices (RADs) and related supplies and accessories. Bidding for Round Two, which will expand the program from nine cities to 91 areas, will begin this fall.
Pricing based on Round One of the program was implemented Jan. 1, 2011. According to CMS, this revised pricing has yielded a savings of 35 percent to date. Round Two bidding will result in changes to pricing that will be implemented July 1, 2013. CMS anticipates that the competitive bidding program will result in savings of $28 billion. Round Two bidding may result in decreases to reimbursement for CPAP and related supplies and accessories. However, any estimation of the exact amount of the decrease would be speculative at this time.
Specific information about the competitive bidding process, including a list of the 91 areas participating in Round Two, can be found at www.dmecompetitivebid.com. For additional information on the expanded competitive bidding program, please review the CMS press release dated Aug. 19, 2011.
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