Episode 33: Bid Smart 2019, A Competitive Bidding Program Round 2021 Update

Published in Member Communities on June 06, 2019

VP of Regulatory Affairs at VGM, Mark Higley, gives an update on Round 2021 of the Competitive Bidding Program. In early March, the Centers for Medicare & Medicaid Services (CMS) announced major changes to the Durable Medical Equipment, Prosthetics, Orthotics, & Supplies (DMEPOS) competitive bidding program for 2021, including plans to consolidate the competitive bidding areas (CBAs) included in the Round 2 Re‐compete and Round 1 2017 DMEPOS Competitive Bidding Program (CBP) into a single round of competition named “Round 2021.”

The changes are large in scale and are coming fast. Starting July 16, 2019, suppliers will have the opportunity to place bids for Round 2021, which requires suppliers to understand key changes, including:

  • Higher bid ceiling
  • Lead Item Pricing
  • Maximum winning bid for the lead item, driven by beneficiary demand and bidder capacity
  • Bid Surety Bonds
  • Use of SPAs to set rates in Non-CBAs

What does this mean for the DME industry?

In short, it means suppliers must quickly get up to speed about how these changes will impact their business so they can be ready to bid in Round 2021. To help suppliers prepare for the changes, a coalition of leading industry trade associations set up an educational website that compiles publicly available information in one place. You can visit it here: https://www.dmecbpeducation.com.

The site includes an interactive calculator tool to estimate how the new lead item pricing methodology impacts the rest of the products in each category and how the new rates would compare to current Medicare rates. In addition, you can sign up for informational events and webinars designed to educate prospective bidders about the CBP in the lead up to the bidding round.

Listen below or click here.


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