CBIC Releases Round 2 Categories, Zip Codes

Expansion of bid program incorporates mail-order competition, bidding begins in winter.

The Centers for Medicare & Medicaid Services (CMS) today announced the next steps for the expansion of the Medicare Durable Medical Equipment, Prosthetics, Orthotics, and Supplies (DMEPOS) competitive bidding program to include the Round 2 and the national mail-order competitions.

Eight categories are covered by Round 2, with wheelchairs being expanded to include manual chairs.
The Round 2 product categories include:

  • Oxygen, oxygen equipment, and supplies.
  • Standard (Power and Manual) wheelchairs, scooters, and related accessories.
  • Enteral nutrients, equipment, and supplies.
  • Continuous Positive Airway Pressure (CPAP) devices and Respiratory Assist Devices (RADs) and related.
  • supplies and accessories.
  • Hospital beds and related accessories.
  • Walkers and related accessories.
  • Negative Pressure Wound Therapy pumps and related supplies and accessories.
  • Support surfaces (Group 2 mattresses and overlays).

A complete list of HCPCS codes for all the products falling under each category is available in various formats at http://www.dmecompetitivebid.com/palmetto/cbic.nsf/vMasterDID/8KNLGS4060

The specific ZIP codes in each Round 2 competitive bidding area (CBA) are also available on the CBIC website in two formats:

PDF Version - http://www.dmecompetitivebid.com/Palmetto/Cbic.Nsf/files/Round_2_ZIP_Codes_combined.pdf/$File/Round_2_ZIP_Codes_combined.pdf
Excel Version - http://www.dmecompetitivebid.com/Palmetto/Cbic.Nsf/files/Round_2_ZIP_Codes_xls.xls/$File/Round_2_ZIP_Codes_xls.xls

Additionally, CMS will also be conducting a national mail-order competition for diabetic testing supplies at the same time as the Round 2 competition. The national mail-order competition will include all parts of the United States, including the 50 states, the District of Columbia, Puerto Rico, the U.S. Virgin Islands, Guam, and American Samoa.

CMS also retiratred the next steps for the program:

  • In summer 2011, CMS will begin a pre-bidding supplier awareness program.
  • In fall 2011, CMS announces bidding schedule; begins bidder education; and initiates a bidder registration period to obtain user ID and passwords.
  • In winter 2012, bidding begins.

That said, CMS's progress in these areas fell into question, with a recent public statement from the National Association of Independent Medical Equipment Suppliers urging providers not to wait on CMS.

“We do not believe that CMS has conducted any bidder awareness training as required, however the registration of bidder will begin in the Fall of 2011,” the statement read. “NAIMES urges every supplier in or near the Round 2 zip codes to register to bid. Not doing so will mean you cannot change your mind later and bid.”

The Competitive Bidding Implementation Contractor reminded providers interested in bidding to ensure their contact information was updated with the National Supplier Clearinghouse to have the correct name, Social Security number, and date of birth for all authorized officias (if you have only one authorized official listed on your enrollment file, consider adding one or more authorized officials to help with registration and bidding); and The correspondence address.

DMEPOS suppliers can update their enrollment via the internet-based Provider Enrollment, Chain and Ownership System (PECOS) or by using the 7/11/2011 version of the CMS-855S enrollment form. Suppliers not currently using PECOS can learn more about this system by accessing the PECOS website (www.cms.gov/MEDICAREPROVIDERSUPENROLL/) or reviewing the PECOS fact sheet (www.cms.gov/MLNProducts/downloads/MedEnroll_PECOS_DMEPOS_FactSheet_ICN904283.pdf). Information and instructions on how to submit a change of information via the hardcopy CMS-855S enrollment form may be found on the NSC Web site (www.palmettogba.com/nsc) and by following this path: Supplier Enrollment/Change of Information/Change of Information Guide.

Other key reminders from CBIC:

  • Bid contracts are only awarded to suppliers that have all required state licenses at the time the bid is submitted. Before submitting a bid for a product category in a CBA, a provider must have all required state licenses for that product category on file with the NSC. Every location must be licensed in each state in which it provides services. If a provider has only one location and is bidding in a CBA that includes more than one state, it must have all required licenses for every state in that CBA. If the HME has more than one location and is bidding in a CBA that includes more than one state, the company must have all required licenses for the product category for every state in that CBA.

    CBIC also said it is critical that a provider make sure that current versions of all required licenses are in its enrollment file with the NSC before it bids. If any required licenses are expired or missing from the enrollment file, CBIC can reject the provider's bid.

    Also, suppliers bidding in the national mail-order competition must have the applicable licenses for all 50 states, the District of Columbia, Puerto Rico, the U.S. Virgin Islands, Guam, and American Samoa.
  • Suppliers must be accredited for all items in a product category in order to submit a bid for that product category. If a provide is interested in bidding for a product category and is not currently accredited for that product category, it must take action now to get accredited for that product category. The provider's accreditation organization will need to report any accreditation updates to the NSC. CMS cannot contract with suppliers that are not accredited by a CMS-approved accreditation organization.

    Further information on the DMEPOS accreditation requirements along with a list of the accreditation organizations and those professionals and other persons exempted from accreditation may be found at the CMS website:  www.cms.hhs.gov/MedicareProviderSupEnroll/01_Overview.asp.

About the Author

David Kopf is the Editor of HME Business.


Fri, Aug 26, 2011 Richard Garcia, ATP El Paso, Texas

Here we go again - the "circus is comming to town" and everyone is begining to trip over themselfs to be first in line. For the past 20+ years everone has complained of the low amounts medicare has paid to our services / products, the 9.5% reduction came along and everyone moaned & groaned but took it along with the accreditation, bond, IT infrastructure needs, etc. With the "compeditive" bid, the "winning" figures are even below the current ones and it seems everyone is accepting because "we care for our patients" - a very nobal concept, but after the end of the day that nasty unmentioned word - Profit - hsa to be there in order to continue "caring for the patients". This industry lacks unity, were everyone stands up for a fair price for our services or walks away regardles of who takes the unprofitable figure (profit again !!) - they will not be around for long.

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