CMS Hosts Competitive Bidding Teleconferences

BALTIMORE–In an attempt to shed some light on questions
providers have raised about DME competitive bidding and the bidding
process, CMS presented a series of bidders’ teleconferences last
week.

The three calls, including information on bid application and
submission, bidding rules, financial documentation and product
categories, were conducted by the agency’s competitive bidding
implementation contractor.

In one example, an official said the CBIC had received questions
asking why it is necessary to register twice–once for a user ID
and password and again when using the application system for the
first time. These steps are necessary to provide extra security to
protect the bid, the official explained.

Following are a selection of questions covered on the calls:

Q: Will there ever be a time with any specific product
that you may award more than five contracts?

A: Yes. That’s just a minimum number. So it’s not limited to
five. That’s just to ensure that [there are] at least five
contracts. So if the demand is for many more than that, then it
will be awarded that way.

Q: Our financial and our banking runs fiscal year. And
you’re stating that you want calendar year. What are we to do in
that scenario when everything in our company–all our financial
statements, our tax returns–are by fiscal year?

A: It doesn’t really matter. If you keep your accounting books
and records on the fiscal year, fiscal year compilations and tax
return schedules are fine.

Q: If you’re not ready to submit your bid yet, can you
fill out Form A with the general information and then go back at a
later time and do your bid?

A: Yes you can enter your Form A information. Just be sure to
click “Submit” so that you can save your data. And then when you’re
ready to go back and enter all of your information in Form B, the
bidding sheet, that’s fine.

Q: On the total estimated capacity, you can’t bid on
more than 20 percent capacity, as I understand it, or you get
knocked down to 20 percent. Are we putting these bids based on the
total number of units that we have out on the street? For example,
if I have 100 oxygen patients and I can’t service more than 20
percent growth, does that mean that I can only service a total of
120 patients in the coming year?

A: No, this is only for bidding purposes, so after you’re
awarded a contract, it does not affect that at all. This just
ensures that in the bid process that we award at least five
contracts for each product category in the [competitive bidding
area].

Q: If you have multiple locations, can you selectively
bid? In other words, can you submit a bid for a product category
for one of the locations but not for another?

A: Only if you have different products in different locations.
If you have multiple stores in a CBA, but only specific stores are
providing certain products, you would need to submit separate bids.
You would need to have another authorized official and another
[user ID and password].

Q: What do I do when the SADMERC lists no product
classification code, but the form requires [it]?

A: Call the SADMERC, (877) 735-1326.

Q: If a provider submits a zero in their ability to
increase their capacity, will this preclude them from being awarded
a contract?

A: No, it would not preclude them.

Q: What if the price of a product goes sky high and
exceeds the contract reimbursement? Are you allowed to refuse a
patient based on profitability?

A: No, a contract provider must accept assignment.

Q: What information should I provide if there is no
model number?

A: There should be model numbers for all products. Some
manufacturers include the model number in the name …We realize
that there are no model numbers for diabetic supplies. In that
case, you would use your product number.

Q: If we do not win a competitive bidding contract, can
we still do repairs?

A: Any Medicare-enrolled suppler can do repairs. Repairs [are]
not a bid item, so you would be reimbursed at the fee schedule
[rate].

To access transcripts of the bidding conferences, click here.

For questions, call the CBIC helpline at (877) 577-5331 or
e-mail [email protected].

To visit the CBIC Web site, go to www.dmecompetitivebid.com.