What is Competitive Bidding?
The Medicare Prescription Drug, Improvement and Modernization Act of 2003 (MMA) mandated Medicare to update the payment methodology for certain products with a bid process.
The Medicare Prescription Drug, Improvement and Modernization Act of 2003 (MMA) mandated Medicare to update the payment methodology for certain products with a bid process.
Under this program, suppliers within defined geographic areas participate in a competitive bidding process. The suppliers submit bids for the selected products. After the bids are evaluated and compared, contracts are awarded to those suppliers who satisfy price and quality standards.
This means that a supplier who is awarded a contract for a specific product or products, must supply these items to a beneficiary within the service area and accept assignment on all claims.
The current round of competitive bidding, called Round 2021, is well underway. . CMS will announce final payment amounts and begin the contracting process in the summer of 2020. On January 1, 2021 the new contracts begin.
For additional information about Competitive Bidding, visit the DMEPOS Competitive Bidding Program.