Phase One of DME Bidding Program Delayed

The first phase of a Medicare durable medical equipment, or DME, bidding program launched July 1 has been delayed.

Family physicians in the 10 areas selected for the program, which includes certain zip codes in North Carolina, Ohio, Kentucky, Texas, Missouri, Kansas, Florida, Pennsylvania, California and Puerto Rico, may want to inform their Medicare patients about the delay. For patients who are concerned about having to change DME suppliers -- or who already have changed suppliers -- the delay means they may once again use any Medicare-approved supplier they choose.

The delay is a direct result of the Medicare Improvements for Patients and Providers Act of 2008, or H.R. 6331, which was enacted on July 15. Some suppliers and Medicare beneficiary groups had successfully lobbied Congress to delay implementation of the Medicare Durable Medical Equipment, Prosthetics, Orthotics and Supplies Competitive Bidding Program, citing fairness concerns during the bidding process. A provision delaying the start of the program was included in the final version of the act Congress passed earlier this month.

Although CMS has retroactively reinstated DME payment rates that were in effect before July 1, the agency claims that the program, when fully implemented, will result in lower costs for equipment and supplies for nearly four million Medicare beneficiaries.

According to a Medicare fact sheet, the delay affects only Medicare beneficiaries in traditional fee-for-service plans in the 10 selected bidding areas. CMS said that all Medicare households in the competitive bidding areas would receive a letter within two weeks notifying them of the change.