Competitive Bidding Program

CMS will announce the approved suppliers this month for the first round of 10 Metropolitan Statistical Areas (MSAs). Payment rates for the initial 10 MSAs go into effect July 1, 2008. The second phase of the Competitive Bidding program begins in 2009. CMS has announced the additional 70 MSAs. They can be downloaded at http://www.cms.hhs.gov/DMEPOSCompetitiveBid/ . Bidding timeframes for the second phase are yet to be announced. Skilled Nursing Facilities (SNFs) billing the Medicare program under a DME provider number for enteral and/or parenteral nutrition therapy may participate as a “specialty supplier”, however, SNFs are required to submit bids and be awarded a contract for a limited number of product categories. SNFs not participating must use a contract supplier to furnish DME products to their residents. Palmetto GBA, CMS contactor administering the Competitive Bidding Program, has launched a dedicated website for providing the most current and reliable information for Medicare providers, suppliers and referral agents. The web address is: www.dmecompetitivebid.com.