Bidding in Round Two? These are the codes that COUNT!
As I have explained numerous times in conversations with VGM members and in seminar sessions, of the almost 400 codes available in the nine categories only a handful of codes actually affect your overall composite bid.
Simply stated, your composite bid compares you to your competitors that are also vying for a contract in your CBA. Assuming other qualifications are met (e.g., financial, licensing, accreditation et al) the program is purely a mathematical function.
The link below includes about two dozen codes that impact the composite bid greater than 5%. What this means is that the great majority of the remainder of the codes may be bid with MINIMUM discount (even $.01 off the current allowable) and not lower the composite bid more than a few cents…or less. Again, you do NOT NEED TO DISCOUNT ALL CODES in the category the same amount. If you, for example, wish to offer a bid in the hospital bed category of 15% off the current allowable, you could discount E0260 only; it represents about 90% of the weighted composite bid. 40 other codes collectively make up less than 1 percent (!).
Your bid strategy should be focused on a small number of HCPCS codes within a given Product Category. The majority of included HCPCS codes have such a minimal impact on the bid determination as to be practically irrelevant.
Discounting items with small Bid Values will not likely help you win a bid but will almost certainly hurt you when the winning bid rate (fee schedule) is determined for each of the HCPCS codes within the Product Category.
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