BALTIMORE — CMS has announced that based on real-time claims analysis for the first quarter of 2011, there have been "no changes in beneficiary health outcomes" since the implementation of competitive bidding Jan. 1.

The agency has been monitoring the health status of three distinct groups of beneficiaries in the Round 1 competitive bidding areas:

  1. The original Medicare population;
  2. Beneficiaries who are actively using one of the competitively bid products; and
  3. Beneficiaries who are likely to use one of the competitively bid products on the basis of related health conditions. In the case of mail-order diabetic supplies, for example, the third group of beneficiaries would be composed of those with diabetes.

To compile data within the groups, CMS looked at usage rates and a wide range of health outcomes such as deaths, hospitalizations, emergency room visits, physician visits, admissions to skilled nursing facilities, average number of days spent hospitalized in a month and average number of days in a skilled nursing facility in a month.

The data was derived from claims for Medicare populations in each CBA and a corresponding "comparator" region that is similar to the CBA. Data in the Charlotte CBA, for example, is compared with data for Virginia Beach; data in the Dallas CBA is compared against that for Houston.

According to a summary, the agency plans to continue the surveillance and will update the information monthly.


The data, posted on CMS' website, follows a June 17 letter to members of the Program Advisory and Oversight Committee noting that Round 1 of competitive bidding continues to go "smoothly."

Check CMS' report in full.

View more competitive bidding stories.