Thursday, April 5, 2007
CMS on Monday issued a final rule for competitive bidding in Medicare for durable medical equipment, CQ HealthBeat reports. CMS said that the 2008 competitive bidding program will operate in 10 of the largest Metropolitan Statistical Areas and will apply to 10 of the top durable medical equipment, prosthetics, orthotics and supplies product categories, as outlined in the rule. In 2009, the program will expand to an additional 70 MSAs and will continue to expand in future years (Carey, CQ HealthBeat, 4/2). CMS currently pays for durable medical equipment based on a listed price. Under the rule, durable medical equipment companies will submit bids to CMS, which will select suppliers based on cost and volume or on the potential savings for Medicare beneficiaries.