CMS forged ahead this week with a competitive bidding educational program to notify affected beneficiaries ahead of the July 1, 2008, round one implementation date. In a two-page educational document, CMS emphasizes beneficiary savings by posing the question: “How will this new program save me money?” In answer to this question, they reveal: “Since the amount Medicare pays will be less, your 20% coinsurance will be less too.”

An article at Medical News Today says that nearly four million people in the 10 named MSAs will receive information about the first round later this month. “Beginning July 1, Medicare beneficiaries will see lower costs for some of their durable medical equipment and supplies—as much as a 43 percent savings for certain items—and the assurance they will have accredited and financially sound suppliers providing them with equipment and supplies,” said CMS Acting Administrator Kerry Weems (pictured) in press release comments echoed in the Medical News Today article. “It is important that people with Medicare who use certain medical equipment and supplies know they can call 1-800-MEDICARE or go to www.medicare.gov to see if their current supplier is a Medicare-contract supplier, or what they may need to do to find a new supplier approved by Medicare.”

CMS’ educational materials will include a brochure about the new program and a list of contract suppliers in their area. Similar information about the new program and the list of Medicare contract suppliers will go to referral agents such as hospital discharge planners, physician offices, and home health agency social workers.

In some cases, beneficiaries will learn for the first time that while they may continue using grandfathered suppliers, it will only be until the rental period for their equipment ends. At that point, the beneficiaries take ownership of the item or they must switch to a contract supplier. If beneficiaries do not hear from their supplier before July 1, providers should expect to hear from beneficiaries who want to know whether services will continue in the grandfathering arrangement.

For beneficiaries who wish to remain loyal to a provider after the rental period expires, CMS points to the advanced beneficiary notice (ABN) as one alternative. For beneficiaries who choose this route, Medicare wil not likely pay for the item or service, and instead providers will be responsible for paying the entire cost of the item or service.

Additional wording that beneficiaries will see includes: “It will save you and Medicare money; ensure that you get quality medical equipment, supplies, and services; and help limit fraud and abuse in the Medicare Program. This new program starts on July 1, 2008, in the 10 areas listed on the next page. It will expand to 70 additional areas in 2009. Medicare is using the competition of the local marketplace to determine how much you and Medicare will pay for medical equipment and supplies. As a result, your payment for these equipment and supplies will be lower than what you pay now.”