Home Health & Hospice Week

More delays unlikely, at least in phase one.

Suppliers of home medical equipment can now officially try to secure a spot in Medicare's newest competitive bidding program ...quot; but the window won't stay open long.

The Centers for Medicare & Medicaid Services announced May 13 that it had opened the 60-day bidding period for durable medical equipment, prosthetics, orthotics and supplies (DMEPOS) included in the first phase of the competitive bidding program unveiled April 2.

That means suppliers of certain types of HME in the first 10 metropolitan competitive bidding areas (CBAs) are busy crunching numbers, trying to preserve their share of Medicare revenue.

The May 13 bidding commencement was about two weeks later than CMS originally projected, a development that bought suppliers a little time in preparing their bids.

"The additional weeks have given suppliers a chance to begin the analysis of CBA data and to gear up for the bidding evaluation process," says Esther R. Scherb, attorney with Latham & Watkins in Washington, DC.

Most at risk: Small suppliers and those offering the largest product categories face the greatest uncertainties, says Scherb.

Essentials: Don't miss these key points from the CMS call for bids:

• By June 30, suppliers interested in bidding must register and receive a user ID and password.
• First round bids are due by July 13, 9 p.m. ET.
• The contract period for mail order diabetic supplies is April 1, 2008 through Dec. 31, 2009.
• The contract period for all other first round products is April 1, 2008 through March 31, 2011.
• Bidders must submit their bids using an Internet-based submission system.
• The accreditation deadline for the first round of competitive bidding is Aug. 31.

Resource: The CBAs, product categories, bidding information charts, and full bid instructions are located on the Competitive Bidding Implementation Contractor Web site at www.dmecompetitivebid.com. Visitors to the site can also access instructions for registering for a password and user ID.