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Round 2 Recompete: Get Ready for DMEPOS Competitive Bidding ? Common Ownership and Common Control

On July 15, 2014, CMS announced plans to recompete the supplier contracts awarded in the Round 2 and national mail-order competitions of the Medicare Durable Medical Equipment, Prosthetics, Orthotics, and Supplies (DMEPOS) Competitive Bidding Program. If you are a supplier interested in bidding, prepare now – don’t wait. Review your enrollment record. 

  • Commonly owned suppliers are those where one or more of them has an ownership interest totaling at least five percent in the other(s). The term ‘‘ownership interest’’ is defined as ‘‘the possession of equity in the capital, stock, or profits of another supplier.”
  • Commonly controlled suppliers are those where one or more of a supplier’s owners is also an officer, director, or partner of another supplier.

You may not bid against yourself for the same product category in the same competitive bidding area (CBA). Therefore, if you are a commonly owned or commonly controlled supplier, when registration opens, you must register one time with one Provider Transaction Access Number (PTAN). When bidding opens, you must submit one bid that includes all commonly owned or commonly controlled locations that would furnish bid items in the same product category and the same CBA. Remember, commonly owned or commonly controlled supplier organizations that submit separate bids for the same CBA/product category combination will have their bid for the CBA/product category combination disqualified.

Steps to Take Now:

  • Review your current Medicare enrollment record on the Provider Enrollment, Chain and Ownership System (PECOS) for ownership interest and/or managing control information.
  • Complete the appropriate sections of the CMS-855S enrollment application to update any information under your current Medicare supplier billing number.

In you need assistance or clarification on the CMS-855S enrollment application; you may visit the National Supplier Clearinghouse (NSC) website or call the NSC at 866-238-9652. Suppliers must maintain accurate information on its CMS-855S with the NSC and in PECOS.  

For a listing of the product categories, CBAs, timeline and other bidding information, please visit the Competitive Bidding Implementation Contractor (CBIC) website. CMS also encourages you to register on the website to receive email updates about the program. 

As a reminder, the CBIC is the official information source for bidders and bidder education. CMS cautions bidding suppliers about potential inaccurate information concerning the DMEPOS Competitive Bidding Program posted on non-government websites. Suppliers that rely on this information in the preparation or submission of their bids could be at risk of submitting a non-compliant bid.

The CBIC participates in numerous educational events to assist stakeholders in understanding the rules that govern the DMEPOS Competitive Bidding Program. Visit the CBIC website for a listing and schedule of educational events under “Educational Information” for each round.

If you have any questions or need assistance, please contact the CBIC customer service center at 877-577-5331 between 9am and 5:30pm ET, Monday through Friday.