Skip to Content

GAO: Bid surety requirement didn’t impede small provider participation

GAO: Bid surety requirement didn’t impede small provider participation

WASHINGTON – Medicare’s bid surety bond requirement did not have a negative impact on small supplier participation in Round 2021 of the competitive bidding, says the Government Accountability Office in a new report

For the report, “Effect of New Bid Surety Bond Requirement on Small Supplier Participation in the Competitive Bidding Program,” the GAO reviewed CMS’ data on supplier bids and contracts, and interviewed two DME trade organizations, including AAHomecare, and six small DMEPOS suppliers. 

The GAO analysis only includes moved off-the-shelf (OTS) back braces and OTS knee braces competitions for Round 2021, the only two categories CMS moved forward. 

In a summary from AAHomecare, the GAO found that 383 small suppliers submitted a total of 2,318 bids in all 235 competitions in Round 2021. Small suppliers represented about 60% of total suppliers that submitted bids for the two product categories and 58% of the small suppliers were awarded contracts. In the previous five competitive bidding rounds, small suppliers represented a range of 49% to 63% of bidders and 46% to 63% of the small suppliers were awarded contracts. In the previous five rounds, CMS met the small supplier participation goal in 38% to 97% of competitions.  

The GAO also found that for Round 2021, 27% of small supplier bids lost on price and about 21% were disqualified.

AAHomecare and other industry stakeholders support the bid surety bond requirement, saying it protects the integrity of the bidding program.

Comments

To comment on this post, please log in to your account or set up an account now.