Competitive bidding stalled
Device Regulation Alert: Safety, Compliance and Reimbursement News, July 21, 2008
Congress overturned a presidential veto to enact the Medicare Improvements for Patients and Providers Act of 2008 on July 15, delaying the Durable Medical Equipment, Prosthetics, Orthotics, and Supplies Competitive Bidding Program until 2011. That means Medicare beneficiaries can use any Medicare-approved supplier for DME and aren’t limited to those that were selected as winning bidders under the program. CMS promises further guidance in the near future and will inform beneficiaries of the delay.
The Act also reduces the number of metropolitan statistical areas in which the program will operate from 80 to 70 areas. Bid contracts already awarded are terminated. Later rounds of the competitive bidding program will not include rural areas, metropolitan statistical areas with populations less than 250,000 and areas with a low population density within a metropolitan statistical area.
Congress did not favor competitive bidding in general as it also repealed the clinical laboratory competitive bidding program in the same Act.
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