DMEPOS Toolkit

DMEPOS Competitive Bidding Program

On January 1, 2011, Medicare implemented the first phase of the Durable Medical Equipment, Prosthetics, Orthotics, and Supplies (DMEPOS) Competitive Bidding Program. The program's goal is to save billions of dollars for people with Medicare and other taxpayers – while preserving access to quality items and services from qualified suppliers.

Under the competitive bidding program, suppliers submit bids for certain medical equipment and supplies that must be lower than what Medicare now pays for these items. Medicare uses these bids to set the amount it will pay for those equipment and supplies under the new program. Qualified, accredited suppliers with winning bids are chosen as Medicare contract suppliers.

Medicare beneficiaries with Original Medicare in nine areas of the country will obtain program items from approved contract suppliers for nine categories of DMEPOS. Beneficiaries who obtain program items in program areas will usually need to get these items from contract suppliers if they want Medicare to help pay for the item, unless their current suppliers become grandfathered suppliers (non-contract suppliers that choose to continue to provide certain rented equipment under the terms of the program).

If beneficiaries have questions, they may call 1-800-MEDICARE (1-800-633-4227), visit www.medicare.gov or call their State Health Insurance and Assistance Program (SHIP) for more information.