Medicare to Expand Competitive Bidding Program
announced it will pilot its competitive bidding program for durable medical equipment in 91 additional major metropolitan areas after its initial one-year pilot in nine cities saved the program approximately $202.1 million with no negative health impacts on hospitalizations and other metrics.
CMS' competitive bidding program for DME aims to lower costs by requiring suppliers to bid for Medicare Part B contracts. Seniors could save an average of 45 percent on certain equipment, totaling as much as $17.1 billion in savings to beneficiaries and $25.7 billion to the Medicare Part B trust fund over the next 10 years.
The expansion will begin July 1 and will monitor beneficiaries' health outcomes to determine whether there is a negative impact from the bidding program. CMS said more than half of the winning suppliers will be small businesses.
More Articles on Medicare Competitive Bidding:OIG: Medicare Overpaid $37M for Back Braces
CMS Set to Expand Competitive Bidding Program
Private Medicare Plans Show Signs of Cost-Control Despite Democrats' Criticism
© Copyright ASC COMMUNICATIONS 2015. Interested in LINKING to or REPRINTING this content? View our policies by clicking here.
To receive the latest hospital and health system business and legal news and analysis from Becker's Hospital Review, sign-up for the free Becker's Hospital Review E-weekly by clicking here.
New From Becker's Hospital CFO