DMEPOS Toolkit

DMEPOS Competitive Bidding Program

Round One of the Durable Medical Equipment, Prosthetics, Orthotics, and Supplies (DMEPOS) Competitive Bidding Program went into effect on January 1, 2011 in nine areas of the country for nine product categories. In its first year of operation, the program saved Original Medicare over $200 million and resulted in better value for Medicare and beneficiaries, with lower prices and continued access to quality items from qualified suppliers. In Round Two, the program will expand to an additional 91 areas of the country for some of the most expensive and frequently used DMEPOS items.  At the same time, Medicare will also implement a national mail order program for diabetic testing supplies.

Under the competitive bidding program, suppliers submit bids for certain medical equipment and supplies that must be lower than what Medicare now pays for these items.  Medicare uses these bids to set the amount it will pay for those equipment and supplies under the new program.  Qualified, accredited suppliers with winning bids are chosen as Medicare contract suppliers.  Beneficiaries with Original Medicare who obtain program items in program areas will usually need to get these items from contract suppliers if they want Medicare to help pay for the item, unless their current suppliers become grandfathered suppliers (non-contract suppliers that choose to continue to provide certain rented equipment under the terms of the program).

If beneficiaries have questions, they may call 1-800-MEDICARE (1-800-633-4227), visit www.medicare.gov or call their State Health Insurance and Assistance Program (SHIP) for more information.