CMS Announces Plans to Restart DMEPOS Competitive Bidding Program in 2021

“The Centers for Medicare & Medicaid Services (CMS) has announced its plans for Round 2021 of the Medicare Durable Medical Equipment, Prosthetics, Orthotics, and Supplies (DMEPOS) Competitive Bidding Program (CBP), featuring new “lead item” bidding rules and new product categories.  Following on the heels of this announcement, the Trump Administration proposed additional legislative changes to the CBP that would cut Medicare DMEPOS spending by more than $7 billion over 10 years.”

“Round 2021 of the CBP

As previously reported, there has been a “temporary gap” in the DMEPOS CBP since the last round of contracts expired on December 31, 2018.  Last week CMS confirmed that it will launch a new competition – dubbed Round 2021 – for contracts that will run from January 1, 2021 through December 31, 2023…”

“Trump Administration to Seek Legislative Changes to Bidding Rules

On March 11, 2019, the Trump Administration released its proposed fiscal year (FY) 2020 budget.  Among the recommendations is a proposal to move payment under the CBP from a single payment amount based on the maximum winning bid, to the winning suppliers’ own bid amounts.  A budget summary explains that DME suppliers currently “can submit very low bids during the competition to win a Medicare contract and still get paid a higher price even though their low bid reduced prices for all other suppliers in the competition area.”  Under this proposal…” Read the full article here.

Source: CMS Announces Plans to Restart DMEPOS Competitive Bidding Program in 2021; Trump Proposed Budget Seeks Authority for Lower Payments to “Winning” Suppliers – By Elizabeth B. Carder-Thompson and Debra A. McCurdy, March 13, 2019. Health Industry Washington Watch.

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