CMS hopes Medicare beneficiaries in nine metropolitan statistical areas (MSAs) will start to see savings of up to more than 30 percent on certain durable medical equipment, prosthetics, orthotics and supplies beginning Jan. 1, 2011, as Medicare's Competitive Bidding Program takes effect, according to CMS and news reports.
The intent of the competitive bidding program, established in the Medicare Modernization Act of 2003, is to "set more appropriate payment amounts for DMEPOS items, which will result in reduced beneficiary out-of-pocket expenses and savings to taxpayers and the Medicare program," according to CMS.
The Medicare Improvements for Patients and Providers Act of 2008 designated the MSAs for the first round of the competitive bidding program. It will occur in the following MSAs:
- Cincinnati – Middletown (Ohio, Kentucky and Indiana)
- Cleveland – Elyria – Mentor (Ohio)
- Charlotte – Gastonia – Concord (North Carolina and South Carolina)
- Dallas – Fort Worth – Arlington (Texas)
- Kansas City (Missouri and Kansas)
- Miami – Fort Lauderdale – Pompano Beach (Florida)
- Orlando (Florida)
- Pittsburgh (Pennsylvania)
- Riverside – San Bernardino – Ontario (California)
The commonly used DMEPOS affected by the program include:
- oxygen and oxygen equipment;
- wheelchairs;
- walkers; and
- hospital beds.
Learn more about the Medicare Competitive Bidding Program.