Baltimore

Last month, CMS announced it has awarded a contract to the North Carolina-based Research Triangle Institute (RTI) to help launch the massive DME competitive bidding program called for under the Medicare Modernization Act (MMA). According to MMA, competitive bidding is slated to begin in 2007 in the nation's top 10 metropolitan statistical areas (MSAs) and expand to the top 80 MSAs in 2009, after which the program could be implemented nationwide.

The contractor is to assist CMS in developing options and recommendations “on effective strategies and designs” for implementing the national program, and will consult with CMS in preparing for this new payment methodology for DME.

RTI helped CMS evaluate DME competitive bidding demonstration projects in Polk County, Fla., and San Antonio, Texas, between 1999 and 2002. In reports published during the demonstrations, the company said the projects in both areas were being implemented with “no significant adverse effects on beneficiaries.” However, one report did mention “a possible shift away from suppliers making home deliveries, and less frequent routine maintenance visits to new equipment users.”

DME Advisory Committee Forms

On July 2, CMS was to close out nominations for members of a DME Program Advisory and Oversight Committee (PAOC) that will advise the agency on quality standards, financial standards, data collection strategies and, ultimately, the logistics behind the implementation of competitive bidding for DME, enteral nutrition and off-the-shelf orthotics. The committee will have 12 to 15 members including beneficiary/consumer representatives; physicians and other health care providers; manufacturers; suppliers; professional standards organizations; financial standards specialists; data management specialists; association representatives; and experts in shipping fragile medical materials.

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