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[IP] MC contract suppliers for DME - 7/1/08

Medicare Announces Contract Suppliers for Durable Medicare Equipment 
Competitive Bidding Program

The Centers for Medicare & Medicaid Services (CMS) has announced the 
contract suppliers for the first round of the Medicare durable medical 
equipment, prosthetics, orthotics, and supplies (DMEPOS) competitive bidding 
program. The competitive bidding program will offer beneficiaries in the 
designated competitive bidding areas (CBAs) access to quality DMEPOS 
products and services with lower out-of-pocket costs.

As a result of the competitive bidding process, the amounts that Medicare 
will pay for the 10 product categories included in Round 1 of the DMEPOS 
Competitive Bidding Program overall average 26% less than Medicare's 
previous payment amounts. Savings for beneficiary out-of-pocket cost and 
Medicare range from 14% on negative pressure wound therapy devices and 
accessories up to as much as 43% on mail order diabetic supplies. 
Beneficiaries in these CBAs will begin seeing these savings on July 1, 2008.

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