CMS names contract suppliers for Round 2

Tuesday, April 9, 2013

BALTIMORE – CMS proceeded with its competitive bidding program today by releasing the names of 799 contract suppliers for Round 2.

CMS awarded 13,126 contracts to 799 suppliers in 91 competitive bidding areas for certain HME. Additionally, it awarded contracts to 18 suppliers as part of its national mail-order program for diabetes supplies.

On July 1, these contract suppliers will begin providing DME at new payment amounts that are, on average, 45% below the current fee schedule for certain HME and, on average, 72% below the current fee schedule for diabetes supplies.

The contract suppliers for HME have 2,988 locations to serve Medicare beneficiaries in the competitive bidding areas. The suppliers for diabetes supplies have 52.

CMS awarded 90% of contracts to suppliers that are already established in the competitive bidding area, the product category or both. Small suppliers, those with gross revenues of $3.5 million or less as defined by the program, make up 63% of the contract suppliers.

In all, CMS received 48,424 bids from 2,641 suppliers during a 60-day bidding period from Jan. 30 to March 30 last year.

CMS expects competitive bidding to save an estimated $25.7 billion between 2013 and 2022.

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

For a list of contract suppliers:^Suppliers||

For a fact sheet:

For CMS’s press release:


My favorite one so far is the Florida company selected as a winning bidder for CPAP supplies in Hawaii and the company has never provided CPAP. Nice diligence CMS.