DMEPOS Competitive Bidding Process

20 - DMEPOS Competitive Bidding Process (Rev. 1502; Issued: 05-09-08; Effective/Implementation Date: 06-09-08) To be considered for participation in the Medicare DMEPOS Competitive Bidding Program, suppliers must submit a bid in each CBA for each product category that they want to furnish to Medicare beneficiaries. DMEPOS suppliers must submit a bid amount for every item within a product category. All DMEPOS suppliers that submit a bid must meet the eligibility requirements in 42 CFR 411.414(b)-(d) and the bidding requirements established in the RFB. The RFB may be found on the CBIC Web site at http://www.dmecompetitivebid.com. Bids are evaluated to determine whether the supplier will be able to participate in the program for the duration of the contract period. A composite bid (a supplier’s weighted bids for all items within a product category within a CBA) is calculated for each supplier by product category and by CBA. These composite bids are then ranked in order from the highest to the lowest. The lowest ranked composite bid that includes a sufficient number of qualified suppliers to meet beneficiary demand for the items in a product category will become the pivotal bid. Qualified suppliers that meet all of our requirements and whose composite bids are less than or equal to the pivotal bid will be offered a contract to participate in the Medicare DMEPOS Competitive Bidding Program. Also, additional small suppliers may be added to meet our small supplier target (see section 20.5.1). During the contracting process, additional suppliers may be awarded a contract to meet beneficiary demand.