Cuts add up for Round 2 re-compete

Thursday, March 31, 2016

WASHINGTON - Reimbursement rates will decrease, on average, 7.1% when the Round 2 re-compete kicks off July 1, according to an analysis from AAHomecare.

On average, providers will see a 6.2% reduction in the Midwest; 8% reduction in the Northeast; 5.9% reduction in the south; and an 8.8% reduction in the West as part of the Round 2 re-compete compared to the original Round 2.

Of the product categories included in the Round 2 re-compete, support surfaces will see the largest cuts, ranging from 22.7% to 31.3%, depending on the region. Close behind: Negative pressure wound therapy pumps, which will see cuts ranging from 17.8% to 21%.

There were a few categories that showed modest increases, including manual hospital beds, walkers, wheelchair accessories and negative pressure wound therapy supplies.

CMS is in the process of offering12,181 contracts to 637 bidders. Of those, 93% are to bidders who currently furnish items in the area or within the product category.

The agency plans to announce the contract suppliers in the spring of 2015 and intends to go live with the payment amounts and contract suppliers on July 1, 2016.