BALTIMORE — In a late afternooon press conference, CMS
Acting Administrator Kerry Weems announced new payment rates
resulting from the first round of Medicare DMEPOS competitive
While exact rates vary among the first 10 MSAs, Weems said
Medicare will see average savings of 26 percent on the items
included in the program.
Weems gave the following examples of average pricing:
--Oxygen concentrator: The current allowable averages $199.28
per month, with the new payment averaging $140.82.
--Hospital bed: The current allowable averages $140.46 per
month, with the new payment averaging $99.28.
--Diabetic supplies: The current allowable averages $82.68 per
month, with the new payment averaging $47.53.
"This new program means that Medicare beneficiaries will have
access to some medical equipment and supplies at substantially
lower prices than they are paying now," said Weems. "The Medicare
program and taxpayers will share in these savings. This program
represents yet another way to use the competitive marketplace to
bring the best possible and most efficient care and services to
people with Medicare.
"Because new accreditation and quality standard initiatives are
being implemented in conjunction with the phase-in of competitive
bidding, this program will provide assurance to beneficiaries that
they are receiving high quality medical equipment for home
The bid pricing is scheduled to take effect July 1 in Charlotte,
Cincinnati, Cleveland, Dallas, Kansas City, Miami, Orlando,
Pittsburgh, Riverside and San Juan.
Weems said CMS is sending overnight letters to winning bidders
tonight, and will announce the contract suppliers once all
contracts have been executed.
For a CMS press release on the announcement,
Check HomeCare Monday for further details and industry