Open Call for Rebid Questions

With the industry still buzzing over legislation to repeal
competitive bidding, CMS
officials soldiered on with the seventh in their series of eight
Special Open Door Forums on competitive
bidding. In introducing the session, an open call for queries on
any subject related to the Round 1 rebid, CMS official Martha
Kuespert reminded the 352 listeners that the agency is still on
track to open the bidding window on Wednesday, Oct 21.

Check out the following questions and responses from Cindy
Dreher, content and policy lead for the agency’s Competitive
Bidding Implementation Contractor (Palmetto GBA) during the
Oct. 15 teleconference:

On subcontracting…

Question: Can a contract supplier refer a beneficiary to
a subcontractor if the contract supplier chooses not to carry
certain items within a product category?

Dreher: No, because contracts suppliers are
required to provide all the items within a product category. But we
know that with any Medicare enrolled supplier, a supplier may
subcontract for the purchase of inventory, delivery and instruction
on use of the item, or the maintenance and repair of rented
equipment. A contract supplier can subcontract for the purchase of
the inventory from the subcontractor, and for the delivery and
instructions on the use of the equipment.

In accordance with the quality standards and the supplier
standards, we expect that the beneficiaries and referral agents
will communicate with the contract supplier in arranging for the
DMEPOS items and services. Remember that contract suppliers are 100
percent responsible for services furnished to beneficiaries, and
that subcontractors can’t do everything. Additional information on
the subcontracting standards can be found on the fact sheet on the
[CBIC] Web site.

On bidding numbers…

Question: When will the bidder number be
provided?

Dreher: The bidder number is provided when you
complete and approve form A, not form B, but form A. You need to
complete that, then you will have your bidder number–so put those
in your hard copy packages. If you must modify information on form
A after you have certified form B, then you will have to go back
and recertify all of your bid. And of course you can modify
information on form A and form B as long as the bidding window is
open.

On oxygen payment policy…

Question: If a beneficiary changes from his current
oxygen supplier to a contract oxygen supplier after the [36-month
cap], how much will the oxygen supplier be paid?

Dreher: The Medicare law requires that the
supplier that furnishes the oxygen equipment during the 36 months
of continuous use must continue to furnish the oxygen and the
oxygen equipment after the cap for any period of medical need for
the remainder of the reasonable useful lifetime of the equipment.
This does not change under competitive bidding …

This requirement applies even in situations where a beneficiary
relocates on a temporary basis. For someone who moves down to
Florida for an extended period of time — a snowbird —
or a permanent basis as someone who actually moves from one area of
the country to another outside the supplier’s normal service area.
The supplier that furnishes the oxygen or the oxygen equipment in
the 36 months of continuous use is prohibited from transferring its
ongoing obligations to a contract supplier regardless of whether it
elected to become a grandfathered supplier and regardless of
whether the beneficiary remains in the competitive bidding area.
There are some FAQs on the Web site that relate to these
issues.

On multiple locations…

Question: Do you have to have a physical location in or
near the CBA to bid on that CBA?

Dreher: There is no per se requirement that you
have to have a location in the CBA to bid in that CBA unless there
are state regulations that require that you have a physical
location in the CBA to obtain that state’s required licensure. The
supplier must be able to furnish the items to all beneficiaries in
the CBA using their existing locations. A supplier should not
submit a bid unless it currently has the ability to furnish all
items and services from the product category throughout the CBA.
And these locations must meet all eligibility requirements,
including having the applicable licenses at the time that the bid
is submitted. If you need additional information on licensure,
there is a fact sheet on the Web site, and there are also
licensure guides.

On financial documents…

Question: My company is a subsidiary of a holding
company. Whose financial documents should I submit?

Dreher: This depends on which entity files
taxes. If the subsidiary files their own taxes, then we want the
financial documents for the subsidiary. If the holding company
files the taxes on behalf of the subsidiary, then we want the
financial documents for both the holding company and the
subsidiary, and then we would want the tax extract for the holding
company. You can find this information in the Request for Bids
instructions on the Web site. Click on the “bidding process” and
you will see a link to the RFBs that contains this information.

On manufacturer model name and number…

Question: Do I have to provide the manufacturer model
name and model number for all items in a product
category?

Dreher: No. You are only required to submit the
manufacturer model name and model number for the top HCPCS codes in
the product category. And these codes will be displayed for you on
form B in Dbids [the online bidding system].

Additional tips and information…

• Ask additional questions via e-mail at [email protected].
• CMS is still working on a “What’s New” section on the Web site,
  and officials “hope to post it soon.” 
• Bid registration target dates have passed, but bidders were
  encouraged to register “right now.”
• The eighth and final Special Open Door Forum, which also will
  be an open call, is scheduled for Nov. 4 from 2 to 3 p.m. ET.

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