CMS Announces Round One Pricing
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 bidding.
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 use."
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, click here.
Check HomeCare Monday for further details and industry reaction.