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CMS Announces DMEPOS Competitive Bidding Payment Amounts for Round 2 Recompete and the National Mail-Order Recompete and Begins Sending Contract Offers

On March 15, 2016, the Centers for Medicare & Medicaid Services (CMS) announced the single payment amounts (SPAs) for Round 2 Recompete and the national mail-order recompete of the Medicare Durable Medical Equipment, Prosthetics, Orthotics, and Supplies (DMEPOS) Competitive Bidding Program and began offering contracts to successful bidders.

CMS is required by law to recompete contracts under the DMEPOS Competitive Bidding Program at least once every three years. The Round 2 and national mail-order program contract periods expire on June 30, 2016. Round 2 Recompete and the national mail-order recompete contracts are scheduled to become effective on July 1, 2016. CMS plans to announce the contract suppliers this spring.


  1. HCPCS code E0147 (walker, heavy duty, multiple braking system, variable wheel resistance) has been removed from Round 2 Recompete of the DMEPOS Competitive Bidding Program.
  2. If you are being offered a contract for furnishing items in the General Home Equipment and Related Supplies and Accessories product category or the Standard Mobility Equipment and Related Accessories product category, you should be aware that the following items are being reclassified to the capped rental payment class effective July 1, 2016, in accordance with the final rule published on December 2, 2013(78 FR 72224):

    E0140         E0149          E0985          E1020          E1028          E2228         E2368

    E2369         E2370          E2375          K0015          K0070         E0955         E0197

    The SPAs calculated for these items have been established in accordance with regulations at 42 CFR 414.408(h)(1), whereby payment for capped rental DME is made in an amount equal to 10 percent of the SPA for purchase of new equipment for each of the first three months, and 7.5 percent of the SPA for purchase of new equipment for months 4 through 13.

For additional information, visit the Competitive Bidding Implementation Contractor (CBIC)  website.