CMS released company names of 325 suppliers who won contracts for round one of competitive bidding. While legislative activity could still derail round one, at press time the program was still set to go into effect on July 1, 2008, for the first 10 MSAs. According to CMS, the 325 names represent providers that have already signed the contracts to provide equipment to beneficiaries.

“We are pleased that Medicare beneficiaries living in the 10 first round communities will continue to receive high quality service and supplies from the suppliers participating in Medicare’s competitive bidding program,” said CMS Acting Administrator Kerry Weems via official press release. “All of these contract suppliers have met our stringent standards, so beneficiaries can be assured they receive their equipment and supplies from legitimate suppliers.”

The press release goes on to say:
• this program uses the local, competitive marketplace to lower the costs for certain DME;
• beneficiaries and Medicare will see prices, on average, 26% lower than Medicare currently pays;
• CMS received bids from 1,005 suppliers;
• CMS offered contracts to 23% of suppliers that submitted bids;
• 61% of the bids submitted were priced higher than the winning range, and just over half of these high-priced submissions were disqualified because they failed to meet other bid requirements; and
• the remaining 16% of bids would have been in the winning range had they not been disqualified.

“Medicare-contracted suppliers submitted bids affirming they will ensure that beneficiaries receive necessary equipment and supplies with a high level of customer service,” said Weems. “Medicare has the tools to ensure that the suppliers, as well as companies with which the suppliers subcontract, meet the needs of beneficiaries to guarantee continued beneficiary access to medical equipment and supplies. CMS may seek to terminate contracts with suppliers that don’t meet these requirements.”

Click on the the CBAs below to see a list of contracted suppliers.

Charlotte-Gastonia-Concord, NC-SC
Cincinnati-Middletown, OH-KY-IN
Cleveland-Elyria-Mentor, OH
Dallas-Fort Worth-Arlington, TX
Kansas City, MO-KS
Miami-Fort Lauderdale-Miami Beach, FL
Orlando, FL
Pittsburgh, PA
Riverside-San Bernardino-Ontario, CA
San Juan-Caguas-Guaynabo, PR