No Bid Rates Today, Insiders Say

BALTIMORE — The HME industry has been on edge waiting for CMS to release Round 1 competitive bidding rates today, but according to the latest insider news, that will likely not happen.

A June 10 report from Inside Health Policy noted the agency would announce the single-payment amounts on June 25. “By hitting the June 25 date, CMS could claim savings for the program before lawmakers leave for the July 4 recess,” the newsletter reported.

However, according to a message from the Accredited Medical Equipment Providers of America, the Competitive Bidding Implementation Contractor apparently has no plans to announce the bid rates today.

“This morning, I spoke with a CBIC representative and she said that they had no information about bid results or contracts being offered today,” said Rob Brant, AMEPA president. “The representative did say the rates will be announced by the end of the month, at the latest this upcoming Wednesday, June 30.”

Brant also said the CBIC did not send emails yesterday about release of the rates, and “Federal Express did not deliver notices this morning offering contracts, disqualifications or bid results that were too high.” Neither did congressional offices receive notices from CMS about the rate announcement.

The CBIC representative told Brant an email would be sent with updated information about the bid rates and contracts offered. Based on a CMS timeline, the Round 1 contract winners will be announced in September.

“If CMS is going to wait until the last day in September to reveal those offered contracts, we are going to have some serious problems,” Brant said. “Congress will break for the general election on Oct. 8. That will only give the industry a few days to evaluate the lowest bidders that hospitals, doctors and patients will be relying on, and only a few days to make our case to Congress.

“Are the lowest bidders local? Are they licensed? Are they experienced? Can they still operate and provide service to patients with the additional cuts?” Brant wants to know.

“Medicare will not answer those questions until it’s too late. It’s a political game, and, again, where is the transparency?”

Michael Reinemer, vice president, communications and policy, for the American Association for Homecare, also said it is unlikely that CMS would make the rate announcement until later this month. “That’s what we are hearing,” Reinemer said, adding, “We’ve got to keep our eye on the ball.”

Beyond the timing of the rate announcement, he said, “The larger point is to keep the issue alive and keep working on explaining the consequences of the bidding program.”

In a Legislative Update this afternoon, Waterloo, Iowa-based VGM said bidders should expect the following in the coming days and weeks:

1. Announcement of “winning” bid rates (“single payment amounts”) sometime between June 28 and 30.
2. Potential contract providers will see an e-mail come through either shortly before or following the announcement notifying them to expect a package to arrive.
3. Bidding providers will see one of three types of letters from CMS approximately three to five days following the announcement. The letters will be as follows:
4. • a. Contract offer: Providers may receive a letter stating that they are being offered a contract. The letter will contain the terms of the contract and response instructions.
   • b. Qualified but no offer: Providers may receive a letter stating that they met all bidder eligibility requirements, but submitted a composite bid above the pivotal bid threshold. Providers will be advised that, should contracts be rejected by those offered, they may be offered a contract at a later date.
   • c. Did not qualify: Providers may receive a letter stating that they did not qualify to be offered a contract. This may mean one of several things, including but not limited to: failure to meet financial standards, lack of sufficient financial documentation, lapsed accreditation or surety bond, or lack of proper state licensure.
   • Providers who are offered contracts will be given between 10 and 30 days to respond by either:
   • • a. Signing the contract and accepting/following proper procedure, or
     • b. Rejecting the contract.
     • In late July and August, CMS will evaluate the gaps in supply left by contract rejections and offer contracts to providers who received the second type of letter.
     • In September, CMS will announce the list of all contract providers.
     • Contracts will become effective Jan. 1, 2011.

Check HomeCare Monday and www.HomeCareMag.com for continuing news on the Round 1 rebid.

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