Moving the HME Industry Forward


CMS Announces Competitive Bidding Recompete Plan

July 21, 2014

WASHINGTON, DC – CMS has announced plans to “recompete” the DME supplier contracts awarded in round two of the Medicare DMEPOS competitive bidding program.

CMS is required by law to recompete contracts under the program at least once every three years. The round two contract period for all product categories expires on June 30, 2016.

The Round 2 Recompete product categories are:
• Respiratory Equipment and Related Supplies and Accessories, which includes: oxygen; oxygen equipment and supplies; continuous positive airway pressure (CPAP) devices; respiratory assist devices (RADs); and related supplies and accessories
• Enteral Nutrients, Equipment and Supplies
• General Home Equipment and Related Supplies and Accessories, which includes: hospital beds and related accessories; group 1 and 2 support surfaces; commode chairs; patient lifts; and seat lifts.
• Nebulizers and Related Supplies
• Negative Pressure Wound Therapy (NPWT) Pumps and Related Supplies and Accessories
• Standard Mobility Equipment and Related Accessories, which includes: walkers; standard power and manual wheelchairs; scooters; and related accessories.
• Transcutaneous Electrical Nerve Stimulation (TENS) Devices and Supplies

CMS is conducting the round two Recompete in the same geographic areas that were included in round two. However, as a result of the Office of Management and Budget’s updates to the original 91 round two metropolitan statistical areas (MSAs), there are now 90 MSAs for the round two recompete.

The round two recompete competitive bidding areas (CBAs) have nearly the same ZIP codes as the round two CBAs. However, certain ZIP codes have changed since round two, and CMS has updated the CBAs to reflect the changes. Also, CBAs that were located in multi-state MSAs have been defined so that no CBA is included in more than one state.

A list of the ZIP codes included in each CBA is also available on the CBIC website: