Be in the Know: Competitive Bidding Starts July 1

UDPATE: June 24, 2008:
A bill in the House of Representatives, HR 6331, calls for the delay of implementation for competitive bidding. Watch our website for more information.

June 18, 2008

A new program aimed at curbing the costs of home medical equipment kicks in on July 1. Respiratory therapists can help your patients by understanding what competitive bidding is and who it affects and sharing with your patients a new publication from CMS that explains the program.

Competitive bidding is a program that is being piloted in 10 metropolitan areas beginning next month. This program was put in place to lower the costs to Medicare for home medical equipment.

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, but oxygen is one of the categories falling under competitive bidding. CPAP and other respiratory assisitive devices are also included.

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.

A new publication from Medicare gives a good explanation of the program. Share it with patients you think could benefit from this information.