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DMEPOS Competitive Bidding - Home

The resources and instructions included throughout these web pages are primarily intended for the Non-Contract Supplier and Referral Agent Community. Medicare beneficiaries may visit www.Medicare.gov to learn more; Bidding and Contract Suppliers should utilize the Competitive Bidding Implementation Contractor (CBIC) website as their primary source of program information (see link the in "Related Links" section below).

For the latest news and information, click on the link for the applicable Round on the left side of the page, then click on “Latest News and Announcements."

Program Overview

The DMEPOS Competitive Bidding Program was mandated by Congress through the Medicare Prescription Drug, Improvement, and Modernization Act of 2003 (MMA). The statute requires that Medicare replace the current fee schedule payment methodology for selected Durable Medical Equipment, Prosthetics, Orthotics and Supplies (DMEPOS) items with a competitive bid process. The intent is to improve the effectiveness of the Medicare methodology for setting DMEPOS payment amounts, which will reduce beneficiary out-of-pocket expenses and save the Medicare program money while ensuring beneficiary access to quality items and services.

Under the program, a competition among suppliers who operate in a particular competitive bidding area is conducted. Suppliers are required to submit a bid for selected products. Not all products or items are subject to competitive bidding. Bids are submitted electronically through a web-based application process and required documents are mailed. Bids are evaluated based on the supplier’s eligibility, its financial stability and the bid price. Contracts are awarded to the Medicare suppliers who offer the best price and meet applicable quality and financial standards. Contract suppliers must agree to accept assignment on all claims for bid items and will be paid the bid price amount. The amount is derived from the median of all winning bids for an item.