Competitive Bidding to Change Current Payments for DMEPOS

Payment rates under Medicare's durable medical equipment, prosthetics, orthotics and supplies (DMEPOS) fee schedule will be changing soon.

The Centers for Medicare & Medicaid Services (CMS) issued a final rule April 2 establishing a new competitive bidding program for DMEPOS provided to beneficiaries under Medicare Part B. The bidding program will be phased in over several years, beginning this year, and payment under the program will go into effect in April 2008.

Medicare will use bids submitted by DMEPOS suppliers to establish single payment amounts for each "competitive bidding area" -- initially 10 of the largest metropolitan statistical areas, excluding the New York, Los Angeles and Chicago areas. The single payment amounts established through the program will be lower than the current fee schedule amounts for the items, according to the American Association for Homecare.

The competitive bidding program, mandated by Congress in the Medicare Modernization Act, will initially apply to 10 categories of DMEPOS, chosen for a variety of factors, "including high price and high utilization," the CMS said.

More information about the Medicare Competitive Acquisition Program for Certain Durable Medical Equipment, Prosthetics, Orthotics and Supplies Regulation can be accessed at www.cms.gov/CompetitiveAcqforDMEPOS ( http://www.cms.gov/CompetitiveAcqforDMEPOS ).

( http://www.fdanews.com/ddl/34_15/ )