AAHomecare Releases Competitive Bidding Calculators

CMS/Medicare

WASHINGTON—The American Association for Homecare (AAHomecare) has created competitive bidding calculators to help people better navigate the next round of Medicare competitive bidding.

The organization said the calculators are designed to help suppliers better understand the financial impact when considering a bid on the lead item and to provide suppliers with an understanding of the importance of informed decision-making as preparations for the next bidding round continue.

AAHomecae said these calculators are intended solely as educational and planning tools to assist suppliers in evaluating different bidding scenarios. They are based on the bidding calculators released by the Centers for Medicare & Medicaid Services (CMS) that the organization said are intended to make them more practical and informative. 

Key features of the calculators include:

  • Set bid limit to prevent users from entering bids above the bid limit set by CMS
  • Highlighted the top non-lead item HCPCS codes based on the annual Medicare allowed amount
  • Cost column that allows suppliers to enter their estimated cost for each HCPCS code and evaluate how different bid scenarios may affect profitability
  • Potential impact on rates for Medicaid programs and other payers if their rates are derived from Medicare payment amounts

“These calculators are intended to illustrate the potential impact of the bid amount entered by the user,” AAHomecare said. “They do not predict whether a bid will be selected or what the final single payment amount will be. For round 2028, CMS will be setting the payment amounts based on the 75th percentile of winning bids, and therefore the final payment amounts would depend on the bids submitted by all winning suppliers.”

Suppliers can access the calculators on the AAHomecare Competitive Bidding Education & Resources page. Users are recommended to review the instructions thoroughly. In addition, AAHomecare will be hosting educational webinars along with three sessions on the calculators.

For access to the calculators, click here.

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