CMS Begins Round 1 Bid Verification

Correction: An earlier version of this
story incorrectly attributed some information to the CBIC rather
than to the VGM Group.

BALTIMORE — CMS has begun the “bona fide bid” verification
procedure, VGM reported late Friday. Some providers who submitted
bids for Round 1 of competitive bidding could
receive requests for more information as the CBIC works to
eliminate “irrational, infeasible bids” and computes composite
bids.

“This is the first step of the contracting process for Round 1
bidding entities,” Waterloo, Iowa-based VGM officials said in a
notice to members.

According to the notice: “The request will be for information
regarding [a] bid in relation to the acquisition cost of products
for certain HCPCS codes. For each code included in the bidding
program, CBIC has an undisclosed threshold at which they believe a
bid is bona fide. If a provider bids below that amount, CBIC has
the authority to request invoices or other information to prove
that the product can actually be provided at the bid price.”

VGM also noted that “receipt of a request for additional
information does not necessarily mean something is wrong with your
bid, and certainly doesn’t mean that you are automatically
excluded. It only means that you need to send in documentation to
justify your bid amount and prove that you can actually provide a
product under the requested codes for the amounts bid.”

VGM said the first round of requests was sent out April 22 and
focuses on mail-order diabetic supplies. Other product categories
will follow shortly.

According to VGM, many mail-order providers might have
calculated their bids based on pricing for off-brand test strips,
which is acceptable and can “be justified with an invoice or other
suitable documentation.”

VGM stressed that providers should not ignore requests for
further documentation. “Failure to respond to the request as
instructed will result in your bid being removed from consideration
for contracting,” the contractor said.

Round 1 pricing is expected in June with bid winners to be
announced in September, according to a CMS timeline.

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