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Coverage of Certain Demonstration Projects under Medicare Modernization Act CMS Research Presentations at AcademyHealth 2004 The Medicare Replacement Drug Demonstration Medicaid Analytic eXtract (MAX) View CMS Chart Series Need Data? ResDAC offers help in finding and using CMS data. |
Evaluation of the Durable Medical Equipment Competitive Bidding Demonstration
Pursuant to provisions of the Balanced Budget Act of 1997, this demonstration tests the feasibility and effectiveness of establishing Medicare fees for durable medical equipment, prosthetics, orthotics, and supplies (DMEPOS) through a competitive bidding process. In the first site of the demonstration, Polk County, Florida, the Centers for Medicare & Medicaid Services (CMS) conducted two rounds of bidding in 1999 and 2001, respectively. Five categories of DMEPOS were put up for bidding: oxygen, hospital beds, urological supplies, surgical dressings, and enteral nutrition. A new fee schedule resulted from the bidding, replacing the statutory fee schedule in the demonstration area. In each round, 16 suppliers were selected; about half of the initial winning suppliers won again in the second round. Texas is the second site of the demonstration. In San Antonio’s Bexal, Comal, and Guadalupe counties, the CMS conducted bidding in 2000 for oxygen, hospital beds, wheelchairs and accessories, general orthotics, and nebulizer drugs. Fifty-one suppliers were selected and served Medicare beneficiaries for 23 months beginning in February 2001.
Two interim evaluation reports by the evaluation team (led by Research Triangle Institute) indicated that the demonstration went smoothly. Estimates suggest significant savings from competitive bidding. No major access, quality, or product selection issues surfaced. Medicare’s payment procedures under the new system functioned well. Suppliers appear to have adjusted satisfactorily to the new arrangements.
Evaluation Highlights:
Full Report:
Second-Year Annual Evaluation Report - (April 2002, .pdf 2,573)
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