Competitive bidding rule takes effect
This article was originally published in The Gray Sheet
Executive Summary
Final rule implementing competitive bidding program for durable medical equipment, prosthetics, orthotics and supplies (DMEPOS) goes into effect April 18 over the objections of suppliers and others who claim the program will put many providers out of work (1"The Gray Sheet" March 30, 2009, p. 16). Implementation of the Jan. 16 interim rule previously was delayed by the Obama administration to allow further review by CMS. "Based upon its review and on the need to ensure that CMS is able to meet the statutory deadlines contained in the Medicare Improvements for Patients and Providers Act of 2008, the administration has concluded that the effective date should not be further delayed," CMS says in an April 17 release. "However, there will be no immediate effect on the Medicare DMEPOS benefit and Medicare beneficiaries may continue to use their current DMEPOS suppliers at this time," CMS says. The agency plans to issue new guidance "in the upcoming weeks" on the timeline and requirements to re-do the first round of competitive bidding under the program. The program, expected to save $1 billion annually, was modified last summer under MIPPA (2"The Gray Sheet" July 14, 2008, p. 18)