Important Medicare Information

NEW STARTING July 1st 2013

 Starting July 1, 2013, there will be a new program called the Medicare Durable Medical Equipment, Prosthetics, Orthotics, and Supplies (DMEPOS) Competitive Bidding Program.  Under this program, people with Original Medicare will need to buy or rent certain medical equipment and supplies from suppliers that contract directly with Medicare to furnish these items.

 The following items can ONLY be provided by Medicare Contract Suppliers if you live in a competitive bid zone:

 • Oxygen Supplies and Equipment

• Standard (Power and Manual) Wheelchairs, Scooters, and Related Accessories

• Enteral Nutrients, Equipment and Supplies

• CPAP Devices, Respiratory Assist Devices, and Related Supplies and Accessories

• Hospital Beds and Related Accessories

• Walkers and Related Accessories

• Support Surfaces (Group 2 Mattresses and Overlays)

• Negative Pressure Wound Therapy (NPWT) Pumps

To find a Medicare contract supplier for competitive bid items, visit www.medicare.gov/supplier or call
1-800-MEDICARE (1-800-633-4227) and have your ZIP code ready. TTY users should call 1-877-486-2048

Overview of the DMEPOS Competitive Bidding Program

The DMEPOS Competitive Bidding Program was mandated by Congress through the Medicare Prescription Drug, Improvement, and Modernization Act of 2003 (MMA). The statute requires that Medicare replace the current fee schedule payment methodology for selected Durable Medical Equipment, Prosthetics, Orthotics and Supplies (DMEPOS) items with a competitive bid process. The intent is to improve the effectiveness of the Medicare methodology for setting DMEPOS payment amounts, which will reduce beneficiary out-of-pocket expenses and save the Medicare program money while ensuring beneficiary access to quality items and services. Under the program, a competition among suppliers who operate in a particular competitive bidding area (CBA) is conducted. Suppliers are required to submit a bid for selected products. Not all products or items are subject to competitive bidding. Bids are submitted electronically through a web-based application process and required documents are mailed. Bids are evaluated based on the supplier’s eligibility, its financial stability and the bid price. Contracts are awarded to the Medicare suppliers who offer the best price and meet applicable quality and financial standards. Contract suppliers must agree to accept assignment on all claims for bid items and will be paid the bid price amount. The amount is derived from the median of all winning bids for an item. You may find detailed information about the program on the Centers for Medicare and Medicaid Services (CMS) website www.dmecompetivebid.com. Information provided by Medicare and gathered from the Official U.S. Government Site for people with Medicare. All of the answers above can be found at http://www.medicare.gov/.

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