We have discovered a bug in the VGM Bid Calculator Worksheets at http://www.vgmncbservices.com/bid_calculators.asp. 

In all 100 CBA worksheets the oxygen category (only) includes 5 “payment class” cells in which potential bidders can enter a fixed “desired” bid amount in column G, or a bid discount percent in column H. 

Column M indicates the percentage of the overall composite bid that the five payment categories represent.  The software will sum the input and indicate a discounted composite bid in cell L20 and the overall category discount in cell L21. 

The bug exists in that the category discount did not reflect Payment Class “B”, the Portable Equipment Only class.  The composite bid amount was accurate (and hence there are no issues of an erroneous dollar amount)…but the overall category discount appeared less than the input data.

We are correcting all 100 files now. 

If you would like to manually correct a downloaded copy, it is easy: 

Unhide Column F.  This may be done by shifting and putting your cursor over columns E and G.  Hold the shift and right click the “Unhide” option.  Column F will appear!  The second of the five weighted bid limits (Portable Only) in this column is blank.  Simply copy the function of d7 * e7 and then the correction will take place.  Resave the file (or simply download the updated one from the link above; these will be complete by 1:00 CST today).

Thank you.

I’m receiving many questions relative to the financial documents…such as “what pages of the tax return do I send in?”   All bidders should read EVERY section of the financial documents checklist.  Go here (and your answers should be answered!)…

http://www.dmecompetitivebid.com/Palmetto/Cbic.Nsf/files/R2_Financial_Documents_Chart.pdf/$File/R2_Financial_Documents_Chart.pdf

Need additional help?  Click below and start reading!

http://www.dmecompetitivebid.com/palmetto/CBIC.nsf/DocsCat/CBIC~Bidding%20Suppliers%20Round%202%20National%20Mail-Order~Bid%20Evaluation~8P2KRU4147?open&navmenu=Bidding^Suppliers^Round^2^National^Mail-Order||||&navmenu=Bidding^Suppliers^Round^2^National^Mail-Order||

Remember to ship your hard copy package prior to February 29.

(If you don’t know why then you didn’t read the info in the links above…)

We’ve received numerous calls relative to licensing for the Round Two program.  To begin, we have the links for licensure information on our Web-site at www.vgmncbservices.com.  Click on the upper tab “CBAs” and select your areas of interest from the interactive map.  You will see a Licensure link on the left side of the page. 

But the information within the links doesn’t necessarily answer the plethora of questions with regard to multi-state bidding.  Many of the CBAs cross state lines.  Some states require specific licensure; some none.  Some states do NOT require an out of state entity to obtain a license to service patients within the state.  And so on and so on. 

With that said, let me de-identify an actual bidder who expressed frustration with unclear direction from the CBIC regarding multiple state/CBA bidding and the associated “Form A”.  Below this section  I will then reprint certain clarifications from Palmetto’s Elaine Hensley.  Elaine is a great asset to VGM for her timely responses to our concerns; she is Chief Ombudsman of the CBIC. 

Let’s start with this reprint

———

Mark,

Not real sure how to explain problems with Form A but will try to give you’re the short version.

I am bidding in 4 CBA’s, and have 6 Locations that will service patients. TN requires an HME license, AL requires the HME and Pharmacy License and Augusta is in GA and SC and SC requires Non-Resident Med Gas/DME licenses.

I have set up my corporate location as the primary identifying information and business organization (the PTAN that was used to register), commonly owned or commonly controlled, multiple locations, corporation, licensed in 4 States, bidding 8 categories excluding mail order, and bidding 4 CBA’s (Atlanta, Augusta, Chattanooga, Birmingham).

Everything was good until I tried to add additional locations that would serve all CBA’s. The first real problem I had was that when I got to the “add license for additional location” that you are required to enter, there is a drop down screen where you choose “licensure state” and all 4 states drop down for choice. I selected the state for the location that was appropriate and added the appropriate license info and added licensure and saved as prompted, then went to next locations.

When I had completed all locations the status for primary PTAN indicated COMPLETE and all additional locations status was INCOMPLETE . When I tried to modify the individual locations it indicated no license information available although there was licensing information populated on the screen and when printed appeared on paper as well.  After calling the CBIC for help I was told that the licensure for each state that was indicated on the primary had to be completed for each additional location before it would allow to “complete”. I added all licensure info for all 4 states for each additional location and sure enough all 5 additional locations status indicated COMPLETE.

I called the CBIC again and after about 40 minutes trying to describe situation was finally told to add licensure for all 4 states for all additional locations.  I also started thinking that the licensure info I had just entered would not match if copies of licenses were requested (ie: TN license attached to TN address and PTAN and not Atlanta, Birmingham etc. same with Alabama license and SC license). I called CBIC again  this morning and was directed to go back into modify form A and the licensing requirement for additional Locations and simply choose each state but to put NA if there was no requirement or it was not required for that state for that location… which also worked and status stayed PENDING APPROVAL. I am still NOT sure if I need to indicate only state required licensure info or if I need to indicate all city, county and state business licenses as well. Needless to say I have 999 characters and plenty of room so I went ahead and put everything in.

 I am told I can still go back and MODIFY form A up until 3/31/2102 so not to panic.

One other thing that I realized is that all licenses have to of file with the NSC and updated in PECOS too.

———-

(Response from Elaine…)

Mark,

My questions for this HME is do they intend to service every CBA with every location they’ve listed on their bid or will each location only service the state in which it exists?  Let’s use the Chattanooga CBA as an example:  Tennessee locations service only Tennessee beneficiaries and Georgia locations service only Georgia.

In DBidS, bidders are only required to indicate the applicable license(s) for the product categories and CBAs (states) in which they bid.  Suppliers do not need to enter the city, county, and state business licensure information for bidding purposes.  However,  that information is required in order to comply with Standard #1 of the Medicare DMEPOS Supplier Standards, which reads, “A supplier must be in compliance with all applicable federal and state licensure and regulatory requirements.”  Per page 3 of the Round 2 Request for Bids:

Bidding suppliers must ensure that copies of all applicable state licenses are RECEIVED by the NSC on or before May 1, 2012. Bids will be disqualified if a bidder does not meet all state licensure requirements for the applicable product categories and for every state in a CBA. Every supplier location is responsible for having all applicable license(s) for each state in which it provides services. For a multi-state CBA, the bidder must collectively have all applicable license(s) for every state in the CBA. Each location is not required to have licenses for every state in the CBA as long as each state has a bidding location licensed for the product category.

 Please let me know if there are additional questions.

 Elaine

 Elaine Hensley, Chief Ombudsman Palmetto GBA DMEPOS Competitive Bidding Implementation Contractor

Elaine.Hensley@PalmettoGBA.com

———

Hope this helps some!

These are in no particular order…but are illustrative of various issues we are monitoring at VGM.  Look for several more of these to follow!  As always, if you have questions or concerns regarding the Round 2 program, email me at mark.higley@vgm.com.  Good luck!

1).  “PECOS” — Does a DME supplier have to have an enrollment record in internet based
PECOS in order to place a bid for round two?

Reply:  The PECOS application is not a competitive bidding application. However, a supplier has to still have its information updated in PECOS whether it be through entering the data into PECOS itself or submitting a revised CMS 855-S enrollment form. In the Request for Bids (RFB), it says, “Suppliers should ensure that their enrollment file is up-to-date in the Provider Enrollment, Chain and Ownership System (PECOS) and with the National Supplier Clearinghouse (NSC) as information in the enrollment file will be verified during the registration and bidding process.”

For more information about registering with External User Services (EUS) to view your enrollment file in PECOS, please refer to the EUS website at www.eushelpdesk.com or you may contact EUS at 866-523-4759. If you have additional questions, please contact the CBIC Help Desk at 1-877-577-5331.

2).  DBidS glitches?  AAHomecare spoke with senior CMS staff about problems that some HME providers are encountering when submitting bidding information in the competitive bidding DBidS system.  CMS is instructing all HME providers who are encountering problems to either call the CBIC or fill out a “trouble ticket” with the CBIC.   Our experience has been that the CBIC is very responsive to e-mail.  There is a daily senior CMS staff meeting at 9:30 am ET, which includes CMS’ IT contractor and CBIC staff, where they review all issues related to the bidding program. 

3).  E0193 (and other low utilization codes in the Support Surfaces (Group 2 Mattresses and Overlays) category:  Yes, for this code (and many others) you will likely not find a major manufacturer and model number.  That is OK!  It’s an issue most bidders are facing in at least some cases, and one that we have made the CBIC aware of.  The reality, for the time being, is that you must bid on all codes.  Two points here: a)  you only need list the manufacturer and model number for top (high utilization) codes  — and, according to the CBIC bidding worksheet…

Hence — it is extremely rare and you’d likely never have to supply it, and MOST importantly…this and similar codes have such low utilization rates (bid weight) that they are virtually inconsequential to your chances of being awarded a contract.  Bid a penny under the fee schedule/bid limit and move on.

 More to follow…

We are getting lots of questions relative to hard copy submissions. 

Here is an extract from an actual CBIC inquiry…

From: “CBIC.ADMIN@bcbssc.com” <CBIC.ADMIN@bcbssc.com>
To: Cc: CBIC.ADMIN@bcbssc.com
Sent: Wednesday, January 25, 2012 2:16 PM
Subject: RE: Financials for Competitive Bid
DCN 12025I03000xxxxx

Dear ==========

We are responding to your e-mail inquiry regarding accrual vs. cash basis.

We are not asking that you convert your cash accounting to accrual, because a cash basis is acceptable.
For consistency, we have provided some direction by requesting that the three required financial statements be prepared on the accrual or cash basis of accounting.  Although the financial statements must be in accordance with GAAP, certain departures such as depreciation, variable interest entities, or sale leaseback of medical equipment is acceptable.

If you have additional questions, please contact the CBIC Help Desk at 1-877-577-5331.  Please note that the Help Desk hours of operation have been extended for the registration and bidding periods to 9:00 a.m. until 9:00 p.m. prevailing Eastern Time, Monday through Friday.

Please continue to monitor the www.dmecompetitivebid.com website for information regarding the DMEPOS Competitive Bidding Program. If you have not done so, please register to receive e-mail updates and alerts. To register, please click the following link:

http://www.dmecompetitivebid.com/cbic/cbicregistration.nsf/profile?OpenForm.

Sincerely,

Competitive Bidding Implementation Contractor
Palmetto GBA

http://www.PalmettoGBA.com/disclaimer

The Round 2 competitive bid program registration will close on 02/09/2012 at 9:00 PM EST!

Suppliers that do not register cannot bid and are not eligible for contracts.  Don’t wait – go to the Competitive Bidding Implementation Contractor (CBIC) website at www.DMECompetitiveBid.com and register TODAY!

 Registration is typically a quick and easy process if you follow the step-by-step instructions in the “Individuals Authorized Access to CMS Computer Services (IACS) Reference Guide” posted on the CBIC website.  To register, visit the CBIC website and click on “REGISTRATION IS OPEN” above the Registration Clock on the homepage.  You will also find a registration checklist and Quick Step guides on the CBIC website.  Please note that suppliers with multiple locations typically must register only one Provider Transaction Access Number (PTAN) that will submit the bid for all locations. 

 The target registration dates have passed for authorized officials (AOs) and backup authorized officials (BAOs).  End users (EUs), as well as any AOs and BAOs who have not yet registered, should register NOW.  Suppliers may wish to register multiple EUs to help enter bid data in Form B of DBidS, the online bidding system.  You will need to complete a Form B for each product category/competitive bidding area (CBA) on which you are bidding.  Multiple users (AO, BAOs, EUs) may be in the Form B section of DBidS at the same time as long as each user is entering information for a different product category/CBA.  Only suppliers that have registered and received a user ID and password will be able to access the online bidding system and submit bids.

 If the AO for your company has not already registered, CMS cannot guarantee that he or she will be able to complete the registration process before registration closes.  This is especially a concern if your files with the National Supplier Clearinghouse (NSC) are not current and accurate.  If your AO does not register, you cannot bid and will not be eligible for a contract.  In addition, suppliers whose AOs have not registered are at risk of experiencing delays in accessing the online bidding system to get a bidder number and thereby missing the opportunity to submit financial documents by the Covered Document Review Date (CDRD). 

 If you have registered an AO but not a BAO, CMS strongly recommends that a BAO register NOW.  The establishment of a BAO is encouraged to avoid any disruption in the bidding process.  The individual in the BAO role can assume the AO role if for some reason the AO can no longer fulfill his or her bidding responsibilities.  If there is no BAO for a company and the AO leaves the company, all end users associated with the company will lose access to the bidding system. 

 Remember, the AO and BAO must be listed on the CMS-855S enrollment form as an AO.  After an AO successfully registers, the AO may designate other authorized officials on the CMS-855S to serve as BAOs; the AO and BAOs can then designate other supplier employees as EUs.  BAOs and EUs must also register for a user ID and password to be able to use the online bidding system.  The name, date of birth, and social security number of the AO and BAOs must match exactly with what is on file with the NSC to register successfully.

 The CBIC is the official information source for bidders.  All suppliers interested in bidding are urged to sign up for email updates on the homepage of the CBIC website.  If you have any questions about the registration process, please contact the CBIC Customer Service Center at 877-577-5331.

I am still fielding a few calls re “how do I…?” 

So let’s make it simple!

1).  Read this first:  http://dmecompetitivebid.com/Palmetto/Cbic.Nsf/files/R2_IACS_Quick_Steps_New_User.pdf/$File/R2_IACS_Quick_Steps_New_User.pdf

2).  Then look at ACTUAL step-by-step screen shots here: http://www.vgm.com/files/PDF/Round2RegistrationScreenShots.pdf

3).  Read the remainder of this Blog’s posts.  http://www.vgm.com/blog/index.php/category/regulatory/

4).  You should be in good shape!  Email me with any problems.