Congress requests delay for Round 2 of DMEPOS Competitive Bidding Program

On June 12, members of Congress sent a letter to CMS administrator Marilyn Tavenner asking for a delay to Round 2 of the Competitive Bidding Program for Durable Medical Equipment, Prosthetics, Orthotics and Supplies (DMEPOS) through the end of 2013.

According to the letter, the request for a delay came after Congress received reports that the CMS awarded DMEPOS contracts to 33 bidders that do not hold a valid DME license in Tennessee as well as 68 companies in Maryland that do not hold the necessary Maryland Residential Service Agency license and to 58 firms in Ohio that are not appropriately licensed to provide items. By making these awards, CMS may have skirted eligibility rules that state such bids will be disqualified.

Further congressional analysis revealed many contract suppliers in Round 2 bidding areas are not accredited or certified in the specific product category for which they have been awarded a contract, violating the Quality Standards and Accreditation rule that states any bidder who is not listed as being accredited for that specific category should be red flagged and removed from the bidding process.

“We are extremely concerned that any mishandling of the bidding process will impact Medicare’s ability to serve its beneficiaries in the respective bid areas,” the letter concluded. “For these many reasons, we respectfully request that you delay the start of this program through the end of 2013 in order to allow for adequate investigation and correction of the significant problems that have been identified.”

Medicare has stated it will not delay implementation of the program.

For more information:

Congress Letter to Marilyn Tavenner. Available at:

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