What is the Competitive Bidding Program?

• The Competitive Bidding Program lets Medicare use competitive bids submitted by suppliers to determine the amount Medicare pays for certain durable medical equipment and supplies.
• The program is designed to save beneficiaries money, ensure beneficiaries receive quality medical equipment, supplies, and services; and help limit fraud and abuse in the Medicare program.
• Round One of the bid has closed; prices determined during Round One will go into effect July 2008. 
• Round Two is currently underway. In order to participate in the Medicare DMEPOS Competitive Bidding Program, suppliers must:
• Be located in or service beneficiaries located in the Metropolitan Statistical Areas (MSAs) identified by CMS.
• MSAs, which were determined by CMS, were ranked in terms of general population, then scored by the greatest number of suppliers and allowed charges per beneficiary. Ten MSAs were identified for Round One; 70 MSAs were identified for Round Two.
• Meet quality standards and be accredited by a CMS-approved Deemed Accreditation Organization.
• For more information about the bidding process, please visit
• the CMS Web site or,
• the Competitive Bidding Implementation Contractor (CBIC) Web site

Round One – Implementation 2008

Round One of the Medicare DMEPOS Competitive Bidding Program takes effect July 1, 2008; it affects the following 10 MSAs and product categories:

CMS has now issued three articles through the Medicare Learning Network to educate and prepare the public for the July 1, 2008 implementation of the Medicare DMEPOS Competitive Bidding Program.  These Special Edition MLN Matters articles, numbered SE0805, SE0806, and SE0807, contain information of both a general nature about the program as well as policy-specific topics such as grandfathering, mail order diabetic supplies, and advance beneficiary notices.  All three articles can be easily accessed by going to the Medicare Learning Network General Information Web page at http://www.cms.hhs.gov/MLNGenInfo and clicking on the link entitled “DMEPOS Competitive Bidding Articles” in the downloads section of the page.  

Round Two – Implementation 2009

Important Deadlines:

• Suppliers of DMEPOS must be accredited or have applied for accreditation by May 14, 2008, to submit a bid for the second round of competitive bidding. CMS cannot accept a bid from any supplier that is not accredited or that has not applied for accreditation by May 14, 2008.
• Suppliers will need to be accredited to be awarded a contract.  The accreditation deadline for the second round of competitive bidding is October 31, 2008.  Suppliers must be accredited before this date to be awarded a contract. Suppliers should apply for accreditation immediately to allow adequate time to process their applications.

Round Two MSAs:

Competitive Bidding areas (CBAs)
A CBA is defined by specific zip codes within MSAs. The CBA may be concurrent with, larger than or smaller than the related MSA depending on a variety of considerations including the exclusion of low population-density areas within the MSA and the inclusion of a part of a normal service area. The CBA will be the area wherein contract suppliers will furnish certain DMEPOS items to resident beneficiaries. 

1. Oxygen Supplies and Equipment
2. Standard Power Wheelchairs, Scooters, and Related Accessories
3. Complex Rehabilitative Power Wheelchairs and Related Accessories
4. Enteral Nutrients, Equipment, and Supplies
5. Continuous Positive Airway Pressure (CPAP) Devices, Respiratory Assist Devices (RADs), and Related Supplies and Accessories
6. Hospital Beds and Related Accessories
7. Negative Pressure Wound Therapy (NPWT) Pumps and Related Supplies and Accessories
8. Walkers and Related Accessories

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