Bid News Blog

This news site presents breaking news on the CMS competitive bidding programs. It is interactive and readers are encouraged to post stories in their names or anonymously
January 30, 2012

Bidding is Now Open for the Round 2 and National Mail-Order Competitions of the DMEPOS Competitive Bidding Program

The Centers for Medicare & Medicaid Services (CMS) is now soliciting bids for the Round 2 and national mail-order competitions of the Medicare Durable Medical Equipment, Prosthetics, Orthotics, and Supplies (DMEPOS) Competitive Bidding Program.

All bids must be submitted in DBidS, the online bidding system, by 8:59:59 p.m. prevailing Eastern Time on March 30, 2012. All required hardcopy documents that must be included as part of the bid package must be RECEIVED by the Competitive Bidding Implementation Contractor (CBIC) on or before March 30, 2012. The contract period for the Round 2 and national mail-order competitions is July 1, 2013 – June 30, 2016.

January 25, 2012

CBIC clarifies its clarification on credit reporting deadline

From: Home Care Magazine

The Accredited Medical Equipment Providers of America (AMEPA) has done some more digging on the issue of when credit reports should be dated for Round 2 of competitive bidding, and prompted a clarification from the CBIC.

Last week, a CBIC spokesperson told consultant Chris Rice that the deadline was Jan. 30. This week, a CBIC ombudsman told AMEPA that there was no such deadline.

At issue was the wording in CBIC instructions stating credit reports must be dated “within 90 days prior” to the opening of the bid window, which is Jan. 30. Rice had called a CBIC official who said the instruction really meant within 90 days of the bid window opening.

January 23, 2012

Data energizes industry’s bid fight

From: HME News

By Theresa Flaherty, Managing Editor

WASHINGTON – Industry stakeholders greeted lawmakers who returned to Congress last week with new data in the fight against competitive bidding.
 
Claims for home medical equipment in Round 1 bid areas plunged by as much as 82% in 2011 compared to 2010, according to data obtained and analyzed by Prof. Peter Cramton, a vocal critic of competitive bidding as it’s currently designed. That points to access problems for beneficiaries in those areas, stated AAHomecare, which released the data in a bulletin to members last week, and other stakeholders.
 
“There are serious, serious problems,” said Wayne Stanfield, president and CEO of NAIMES. “You can’t have claims volume go down by that much. This is potentially a smoking gun.”
 
Cramton found that claims subject to bidding fell by the following percentages: complex rehab, 82.1%; CPAP devices, 63.7%; diabetes supplies, 74.1%; enteral nutrition, 65%; hospital beds, 63.7%; oxygen, 61.7%; standard power, 81.5%; support surfaces, 73.8%; and walkers, 71.5%.
 
Stanfield theorized several possible reasons for the decline in claims, most notably that beneficiaries can’t find contract suppliers. That means they are: obtaining needed equipment from non-contract suppliers who can’t bill for it; obtaining it from charity organizations; paying for it out-of-pocket; or doing without.
 
The new data should energize efforts to gain support for the industry’s alternative to competitive bidding: a market pricing program or MPP. Stakeholders would like to see MPP incorporated into a final bill on the tax cut and “doc fix” due in February.
 
While provider Bernie Zimmer was readying himself to submit a bid for Round 2, he also did his part to lobby against the program.
 
“We are absolutely talking to our lawmakers,” said Zimmer, officer at California Home Medical Equipment in Foster City, Calif. “I haven’t really had much feedback other than ‘We understand the message and we are working on it.'”
January 18, 2012

Audits threaten providers

From: HME News

By Theresa Flaherty, Managing Editor

YARMOUTH, Maine – The onslaught of audits shows no signs of abating, according to the results of a recent HME NewsPoll.
 
Seventy four percent of respondents say they were audited more frequently in 2011 than in 2010.
 
“Audits have nearly brought us to our knees,” said Tom Black, CEO of Mobility and More in Loveland, Colo., who has experienced payment delays of 60 days or more. “This cannot continue or we will be gone.”
 
The majority of respondents say up to 10% of their claims were audited in 2011.
In addition to cash strangleholds created by audits, the process is just plain expensive, say providers. 
“We have estimated the extra cost of manpower and consultants to be in excess of $150,000 to get these claims paid,” said one provider.
 
That provider is in the minority when it comes to bringing in outside help: 74% of respondents say they prefer to handle audits in-house, albeit at a cost.
 
“We’ve had to dedicate a full-time employee to do nothing but respond to audits,” said Joey Graham, director of operations & administration for Pensacola, Fla.-based Gulf Medical Services.
 
Even though they’re dedicating extra resources to handling audits, providers say they just can’t respond to each one.
 
“It is too time consuming to chase down, copy and send the request information,” said one provider. “Also, payment is delayed waiting for the audit review.”
 
But for those who do, it often pays off in the form of fewer future audits, they say.
 
“Initially, the audits were frequent,” said Jim Clark, president of Clark Respiratory and Medical Supply in Catskill, N.Y. “We win most of them. We believe our track record is proving us a low risk.”
January 12, 2012

Competitive bidding updates issued for wheelchairs, diabetic strips

From: Home Care Magazine

The Centers for Medicare & Medicaid Services issued two announcements Friday revising and clarifying conditions for Round 2 of the Competitive Bidding Program.

CMS revised bid limits in the Round 2 Bid Preparation Worksheets for 14 HCPCS codes for power wheelchairs (K0813 through K0829). The previous bid limits listed in the worksheet were incorrectly based on 150 percent of the actual bid limits, CMS reported.

CMS also made three clarifying updates to the list of glucose monitors on the 50 Percent Compliance Form, a bid document for the national mail-order competition. The updates:

January 9, 2012

Time is Running Out to Register for DMEPOS Competitive Bidding

From: CMS

January 6, 2012

Three DMEPOS Competitive Bidding Announcements

The Centers for Medicare & Medicaid Services (CMS) has three announcements for suppliers that are interested in participating in the Round 2 and national mail-order competitions of the Durable Medical Equipment, Prosthetics, Orthotics, and Supplies (DMEPOS) Competitive Bidding Program.

First, bid limits in the Round 2 Bid Preparation Worksheets have been revised for 14 Healthcare Common Procedure Coding System (HCPCS) codes for power wheelchairs (K0813 through K0829). The previous bid limits listed in the worksheet were erroneously based on 150 percent of the actual bid limits.