A second group of contracts in a competitive bidding program for durable medical equipment items showed
savings of more than one-third, according to the Centers for Medicare & Medicaid Services.

The average savings was 37%, five percentage points better than previous bidding produced.

The so-called “recompete” of Round One bidding took place in nine geographical areas last year.

CMS is undertaking the contracting process for suppliers offered contracts for DME items. 

Bids were sought for negative pressure wound therapy pumps and related supplies and accessories; respiratory equipment and related supplies and accessories; standard mobility equipment and related accessories; enteral nutrients, equipment and supplies; external infusion pumps and supplies; and general home equipment and related supplies and accessories.

New payment amounts will replace existing ones in January.

Earlier this year, CMS said that payment amounts for Round Two of the bidding program, which encompasses 91 areas, were on average 45% below Medicare’s fee schedule amounts.