|Articles|May 15, 2006

CMS proposes competitive bidding for DME

CMS proposes competitive bidding for DME

CMS has announced a proposed rule change to launch a competitive bidding program for durable medical equipment (DME) in 2007. CMS currently pays for DME based on a listed price. Under the proposed change, DME companies would submit bids to CMS. The agency would then choose a supplier based on cost and volume or on the potential savings for beneficiaries. CMS estimated the proposed program could save taxpayers more than $1 million annually within five years. A final rule will be issued after a 30-day comment period and will be implemented in three phases beginning in 2007.

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CMS proposes competitive bidding for DME

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