CMS names contract suppliers for Round 1 re-compete

Friday, November 1, 2013

WASHINGTON – CMS on Oct. 31 released the names of contract suppliers that have agreed to supply HME as part of the Round 1 re-compete.

The agency awarded 997 contracts to 282 suppliers for 9 competitive bidding areas (CBAs). The contract suppliers have 620 locations to serve Medicare beneficiaries in the CBAs.

On Jan. 1, these suppliers will begin providing certain HME at reimbursement rates that are, on average, 37% lower.

CMS awarded 97% of contracts to suppliers that are already established in the CBA, the product category or both. Small suppliers, those with gross revenues of $3.5 million or less as defined by the program, make up 58% of the contract suppliers.

In Round 1, which kicked off Jan. 1, 2011, CMS awarded 1,217 contracts to 356 suppliers in 9 CBAs.

In Round 2, which kicked off July 1, CMS awarded 13,126 contracts to 799 suppliers in 91 CBAs. Additionally, it awarded contracts to 18 suppliers as part of its national mail-order program for diabetes supplies.

Now that the names of the contract suppliers are public, CMS will begin educating suppliers, beneficiaries and referral sources about competitive bidding.

CMS expects competitive bidding to save an estimated $25.8 billion for Medicare over 10 years and $17.2 billion for beneficiaries through reduced co-pays.

For a list of contract suppliers:

For a fact sheet: