The Centers for Medicare & Medicaid Services (CMS) has just issued an interim final regulation with comment period, incorporating the changes required by the Medicare Improvements for Patients and Providers Act of 2008 (MIPPA).

On its website, CMS says that the MIPPA changes and a new Federal Advisory Committee are the "next steps" prior to the Agency restarting the Medicare Competitive Bidding Program for durable medical equipment, prosthetics, orthotics, and supplies (DMEPOS) consistent with these regulations. The controversy and legal/congressional actions concerning the DMEPOS bidding program have been previously reported in DOTmed (DM 6416, DM 6417, DM 5793, DM 5773, DM 5662--enter a story number in any search box).

"Because of concerns about the implementation of the competitive bidding program, Congress called for a delay of the program and made certain changes, which this new regulation carries out," said Kerry Weems, CMS acting administrator. "Implementing the law's changes and appointing members to the program's oversight committee are the first steps to take to restart the competitive bidding process."

Through MIPPA, Congress enacted a temporary delay in the competitive bidding program for Round One Competitive Bidding Areas. MIPPA required CMS to terminate existing contracts already awarded in Round One, and to recomplete these contracts in 2009. MIPPA also establishes a new document review process, as well as a reporting requirement for contracted suppliers regarding subcontractors. There are also exclusions for certain DMEPOS items and areas from competitive bidding, and an exemption for hospitals furnishing certain DMEPOS items to their own patients. CMS says it will soon issue additional information about the program, including a complete timetable of the Round One rebidding process.

CMS says that in the lead up to Round One competitive bidding last year, "many suppliers submitted bids outside of the competitive range, and there were many concerns about financial documentation and standards accompanying the bids. In addition, there were questions about contracting and subcontracting arrangements for winning suppliers and state licensure issues."

Committee Formed

CMS has also announced the new Program Advisory and Oversight Committee (PAOC) members, who will advise the Secretary on issues related to the implementation of the program as well as key operational issues. The committee members, whom CMS describes as representatives of beneficiaries and consumers, physicians and other practitioners, suppliers, organizations that help to establish professional standards, states, financial standards experts and representatives from industry associations, are as follows:

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