CMS awards 586 contracts in latest round of bidding

Thursday, April 28, 2016

WASHINGTON – CMS named the contract suppliers for the Round 2 re-compete of competitive bidding at 5:02 p.m. on Thursday.

CMS says it has executed 586 contracts, 91% of those offered, for seven product categories. The contract providers have 2,200 locations to serve Medicare beneficiaries in competitive bidding areas.

The agency also awarded nine contracts, 100% of those offered, for diabetes supplies as part of its national mail-order program.

CMS says 92% of contract suppliers are already established in the bid area, the product category, or both. It says small suppliers, those with gross revenues of $3.5 million or less, make up 62% of the contract suppliers.

“The bid evaluation process ensures that there will be a sufficient number of suppliers, including small suppliers, to meet the needs of the beneficiaries living in the CBAs,” the agency states in a fact sheet.

Previously, on March 15, CMS announced the single payment amounts for the Round 2 re-compete. The amounts represent average reductions of anywhere from a few percentage points to up to 25%, over and above the amounts for the original Round 2. The amounts for original Round 2 were, on average, 45% lower than the original fee schedule.

CMS says that, under the first two years under the Round 2 and the national mail-order programs—from July 1, 2013 to June 30, 2015—it has saved about $3.6 billion.

“Health monitoring data indicate that its implementation is going smoothly with few inquiries or complaints and has had no negative impact on beneficiary health outcomes,” the agency states in the fact sheet.

CMS goes live with the Round 2 re-compete and national mail-order programs on July 1.