The Centers for Medicare and Medicaid Services (CMS) began accepting bids from accredited and bonded medical equipment suppliers on October 21 after implementing a number of modifications to the Competitive Bidding Program and conducting a supplier outreach and education effort.

Medicare-approved medical equipment suppliers in nine communities have 60 days to submit bids for the Round One Rebid of the Competitive Bidding Program for durable medical equipment, prosthetics, orthotics, and supplies (DMEPOS). This includes CPAP machines, respiratory assist devices, and related supplies and accessories. According to CMS, currently 93% of all medical equipment suppliers across the country have met Medicare’s accreditation requirements.

“Competitive bidding is an essential tool to help Medicare beneficiaries pay appropriately for high quality health care items and services furnished by Medicare-approved suppliers,” said Jonathan Blum, director of CMS’ Center for Medicare Management. “We worked closely with stakeholders and members of the Program Advisory and Oversight Committee, which represents beneficiaries, manufacturers, and suppliers, to help us implement the program with benefits for patients, taxpayers, and the entire health care system.”

According to CMS, multiple changes were made to the Competitive Bidding Program in order to help suppliers successfully submit a bid and to “ensure that suppliers that are awarded contracts are those best able to serve beneficiaries.” These changes include:
• An Early Comprehensive Bidder Education Program that began in August 2009 in an effort to help suppliers understand all aspects of the bid submission and evaluation processes;
• A “user-friendly” Bid Submission Process that provides a new online bidding system, upgraded request for bids instructions, and a special process for suppliers to have their financial bid documents reviewed for completeness;
• Enhanced scrutiny of bidders, which includes up-front licensure verification, accreditation of subcontractors, and bidder disclosure of subcontractors;
• An updated bid evaluation process that requires suppliers to meet financial standards and evaluates bidders’ capacity and expansion plans to ensure that there are enough suppliers to provide beneficiaries with ready access to quality items and services in the nine areas.

“We expect that these and other refinements will result in the selection of quality contract suppliers offering a choice of products to beneficiaries at a substantial savings,” said Blum in an announcement about the start of the bidding.

The Round One Rebid will occur in the same areas as the first Round One with the exception of Puerto Rico. Suppliers in the areas included in the Round One Rebid that have completed the bidder registration process can access the online bidding system and begin the process of submitting their bids.