CMS to Issue Competitive Bidding Proposed Rule in September

WASHINGTON–It’s on the official calendar: A proposed rule on
DME competitive bidding is slated for release in September,
according to the Federal Register’s semi-annual regulatory
agenda.

The proposed rule is expected to detail exactly how CMS will
implement the national bidding program, which is scheduled to begin
in 10 of the nation’s largest metropolitan statistical areas in
2007. The criteria that will be used to select these areas–which
will not necessarily be the 10 largest in the country–has
been a major concern during past meetings of the Program Advisory
and Oversight Committee, which is charged with advising CMS on NCB
implementation.

PAOC members also expect the notice of proposed rule making to
address a number of related issues, including which products will
be part of the bidding process, formulas that will be used to
calculate payments and requirements that providers must meet to
participate.

Before the proposed rule comes out, CMS has said it will release
a draft of supplier quality standards–which will be required of
every provider who participates in the Medicare program, not just
those who take part in competitive bidding. PAOC members say they
expect the quality standards will be released sometime this summer.
The final rule for NCB is expected to be published by early summer
2006.

“We’re just sort of in a limbo time right now,” said PAOC member
Cara Bachenheimer, vice president, government relations, for
Invacare Corp., Elyria, Ohio. “It’s a very aggressive schedule.
We’re hopeful they’re going to stay on course.”

Both national competitive bidding and supplier quality standards
are mandated by the Medicare Modernization Act.

For more information about DME competitive bidding, including
notes and presentations from past PAOC meetings, click
here.