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CMS Releases New Subcontractor Guidelines

October 2, 2009 by HME Business

The Centers for Medicare and Medicaid Services (CMS) has posted new bid subcontractor guidelines on the competitive bidding implementation contractor (CBIC) website.

Appearing as answers to frequently asked questions, the guidelines cover various topics:

  • Do manufacturers need to be accredited to perform warranty repairs?
  • May a contract supplier subcontract specifically for the delivery of the item?
  • Under the supplier standards, may a supplier subcontract out for other services?
  • What are the rules regarding referrals from subcontractors?
  • What services may be subcontracted? Which subcontractors need to be accredited?
  • As the primary supplier, I understand that I am responsible for submitting claims on behalf of the Medicare beneficiary. Does this mean I cannot use a billing agent?

Additionally, a Subcontracting Fact Sheet is available as a downloadable PDF.

Key clarifications on the site include the stipulation that a primary supplier is responsible for ensuring that its subcontractors perform in compliance with all applicable laws, regulations, and policies.

Also, subcontractors can purchase inventory, deliver and instruct on the use of a Medicare-covered item, and perform maintenance and repair of rented items. Subcontractors do not need to be accredited in order to purchase, but must be accredited to deliver, provide instruction, maintain or repair DME.

Subcontractor bigging guidelines

http://www.dmecompetitivebid.com/palmetto/CBIC.nsf/docsCat/CBIC~Suppliers~Bidding%20Guidelines?OpenDocument&Start=1&Count=80&Expand=10&cat=Suppliers~Bidding%20Guidelines

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