How does the new Durable Medical Equipment, Prosthetics, Orthotics, and Supplies (DMEPOS) Program work?

September 20, 2009 by admin

Starting in Fall 2009, suppliers will submit bids to supply certain types of Durable Medical Equipment, Prosthetics, Orthotics, and Supplies (DMEPOS) items in the competitive bidding areas to people with Medicare. In mid-2010, contracts will be awarded to suppliers that submit bids to supply items at competitive prices; that meet Medicare's eligibility, quality, and financial standards; and that are accredited by an independent accrediting organization. These suppliers are called "contract suppliers."In most cases, only contract suppliers will be able to provide competitively-bid DMEPOS items in the competitive bidding areas and file claims with Medicare for payment. Contract suppliers can't charge more than the competitive bid prices, called "single payment amounts" set by Medicare for these competitively bid items. These amounts are based on the bids received for an item and can't be higher than the current Medicare-allowed amount (fee schedule).