CBIC Reminds Bidders to Get State Licensure

Providers submitting bids for Round Two recompete must meet all state licensing requirements.

CMS’s Competitive Bidding Implementation Contractor (CBIC) has sent a message reminding bidders in the Round Two recompete that contracts will only be awarded to suppliers that meet all applicable state licensing requirements by the close of the bid window. 

The news comes in the wake of recently passed Binding Bids legislation, which, in addition to making bids binding, also requires providers to give proof of state-level licensure before they can submit bids. While that legislation does not impact the current recompete of Round Two of competitive bidding, CMS did feel the sting of not paying closer to state licenses when it was revealed during the awarding of Round Two contracts that many contract holders were not licensed in the states where they had one bands.

“If you are submitting a bid for a product category in a competitive bidding area (CBA), you must meet all DMEPOS state licensing requirements and other applicable state licensing requirements, if any, for that product category,” as statement from CBIC read. “As part of the bid evaluation process, we will verify with the Provider Enrollment, Chain, and Ownership System (PECOS) that each location listed on Form A of the online Durable Medical Equipment Bidding System (DBidS) for a particular CBA/product category combination has all required licenses to furnish items in the product category for the CBA by the close of the bid window.

“Your bid(s) for the CBA/product category combination(s) will be disqualified if you do not meet all the applicable state licensing requirements for the bid(s),” the statement added. “Contract suppliers must maintain compliance with all state licensing requirements throughout the duration of the contract period.”

CBIC said there are two things bidders will want to do:

  1. Have a copy of the required state license(s) on file with the National Supplier Clearinghouse (NSC) and in the PECOS for the location(s) that will be on your bid to provide the items in the product category(s).
  2. Make sure the company’s CMS-855S enrollment application is up-to-date with the NSC and in PECOS and indicates the products you furnish in the states where you provide the items.

About the Author

David Kopf is the Publisher and Executive Editor of HME Business and DME Pharmacy magazines. Follow him on Twitter at @postacutenews.

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