Medicare Competitive Bidding Program started nationwide on July 1, 2013. In this post, you will learn the history of DMEPOS and how it affects Medicare Beneficiaries. Finally, you will discover the program’s current status.
History of Medicare Competitive Bidding Program
Senior Healthcare Direct owner, Robert Bache, says, “Effective July 1, 2013, diabetic Medicare beneficiaries are required to purchase their diabetic supplies, testing, and monitoring from one of 18 mail order companies that have been awarded contracts by the Federal Government.” Congress mandated the DMEPOS Competitive Bidding Program through the Medicare Prescription Drug, Improvement, and Modernization Act of 2013. This statue requires Medicare to replace the current fee schedule payment method for selected Durable Medical Equipment, Prosthetics, Orthotics and Supplies (DMEPOS) items with a competitive bid process.
Moreover, Robert Bache says, “In return for the contracts, these companies are subjecting themselves to more Government oversight to reduce Medicare fraud waste and abuse.” CMS says, “The intent is to improve the effectiveness of the Medicare methodology for setting DMEPOS payment amounts, which will reduce beneficiary out-of-pocket expenses.” Moreover, CMS says it will, “save the Medicare program money while ensuring beneficiary access to quality items and services.”
Current Status of DMEPOS Program
DMEPOS Program contracts expired on December 31, 2018. Since January 1, 2019 there has been a gap in the entire DMEPOS Competitive Bidding Program. However, CMS expects this gap to close by December 31, 2020.
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