The Centers for Medicare & Medicaid Services (CMS) announced that 799 suppliers were awarded contracts as part of Round 2 of the Medicare Durable Medical Equipment, Prosthetics, Orthotics, and Supplies (DMEPOS) Competitive Bidding Program to provide certain medical equipment and supplies to beneficiaries in 91 communities across the country. Additionally, 18 suppliers accepted contracts to provide mail-order diabetic testing supplies at competitively bid prices.
According to a press release, the Round 2 contract suppliers have 2,988 locations to serve Medicare beneficiaries in these competitive bidding areas, while the National Mail-order Program contract suppliers have 52 locations to serve the country through mail or other home delivery. All contract suppliers must comply with Medicare enrollment rules, be accredited, meet applicable licensing requirements and meet financial standards. Ninety percent of contract suppliers are already established in the competitive bidding area, the product category or both. Small suppliers, those with gross revenues of $3.5 million or less as defined for the DMEPOS competitive bidding program, make up about 63% of the Round 2 contract suppliers.
“The expansion of the competitive bidding program means more beneficiaries will benefit from fair pricing on included equipment supplies,” Marilyn Tavenner, acting administrator of CMS, stated. “Each of these contract suppliers has met our stringent standards, so beneficiaries can be assured they will receive their equipment and supplies from accredited, qualified suppliers at significantly lower prices.”
The competitive bidding program, which has already resulted in $202 million in savings in its first year of implementation in nine areas, is expected to save the Medicare Part B Trust Fund an estimated $25.7 billion between 2013 and 2022. Beneficiaries are expected to save an estimated $17.1 billion as a result of lower coinsurance and premium payments, according to a press release.
Round 2 of the competitive bidding program and the national mail-order program will go into effect July 1.