325 Bidding Suppliers Contracted to Supply Medicare Medical Equipment and Supplies

The competitive bidding program, intended to lower costs of various of durable medical equipment, prosthetics, orthotics, and supplies, is well on its way to achieving its projected goals. The program should see a reduction of costs both to the Medicare system and to beneficiaries (since beneficiaries are responsible for a 20 % coinsurance on these items).

Ten communities will start the competitive bidding program on July 1 of this year. According to the bids submitted by the winning suppliers, Medicare will see an average savings of 26%. These 325 winning suppliers were announced on May 19, 2008, and all met Medicare’s specific standards. They all also must be enrolled in Medicare based on their products and services, be financially reliable, fill orders from their own inventory (or have contracts with other companies), ensure beneficiaries can get necessary items, and offer quality customer service by promptly delivering products and resolving complaints efficiently and effectively.

Out of all the suppliers who bid, CMS offered contracts to 23%, who were asking the desired price and met financial and disclosure expectations. 61% of bids asked too high a price, and over half of those were disqualified because they didn’t meet other requirements. 16% of bids were in the winning price range, but they were also disqualified.

Consumers and provides can obtain a list of Medicare contract suppliers at www.medicare.gov, by using the search tool and selecting “find suppliers of medical equipment in your area”.