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Fast Facts

DMEPOS competitive bidding process will begin April 2007.
CMS has announced the 10 MSAs where competitive bidding will be introduced.
CMS has announced the product categories included in the first competitive bidding project.
The Final Rule governing competitive bidding ensures that at least 30 percent of bid winners are small businesses.
Suppliers must obtain accreditation to participate in competitive bidding. The ONLY exception to the rule is a pharmacy that maintains a Part B supplier billing number to submit Part B drug claims and administer vaccinations.
Ten agencies have been approved to accredit suppliers of DMEPOS.

Important Links:

DMEPOS Cost Drivers

By William Popomaronis, R.Ph.

Remembering that we are pharmacists and NOT accountants or Chief Financial Officers, in preparing to bid, try to select DMEPOS cost drivers that are relevant and easy to measure. Relevancy relates to the direct or indirect relationship it bears to the cost of doing business. Ease of measurement means that you must be able to allocate -- on a per transaction basis to each Medicare beneficiary -- the portion attributable to the DMEPOS activities consumed.

DMEPOS cost drivers might include, but not be limited to, accreditation, inside/outside sales, patient demographics capture, insurance verification, claims processing and reconciliation, credit, delivery, telephone expenses, training, billing hardware and software maintenance, and remainder balance collection successes or write offs.

From May 22nd through June 14th I’ll be “hittin the road” visiting the first 10 MSAs selected for competitive bidding. NCPA and PRS will conduct seminars that will provide business tools to assist pharmacists through the accreditation and DMEPOS bid processes.

I will be speaking on understanding your DMEPOS claims processing business costs, including which services are essential or non-essential to providing service that meets or exceeds CMS quality standards.

For more information – locations, dates, and times – or to register for a seminar, click here.

Accredit wisely and bid smart! Hope to see you all at one of the seminars!

William Popomaronis, R.Ph., is vice president, long term and home health care services for the National Community Pharmacists Association (NCPA). He is also the only pharmacist member of Medicare’s Program Advisory and Oversight Committee (PAOC), which provides advice on the development and implementation of the DME Competitive Acquisition Program.

Bayer HealthCare, Diabetes Care, has underwritten the costs of this communication. The information expressed in this communication are the views of NCPA. Bayer is not responsible for the accuracy of the information expressed in this communication. Any questions related to DME Accreditation and/or Competitive Bidding for DMEPOS should be directed to the Centers for Medicare and Medicaid Services or NCPA.


	Sponsored by Fast Facts DMEPOS competitive bidding process will begin April 2007. CMS has announced the 10 MSAs where competitive bidding will be introduced. CMS has announced the product categories included in the first competitive bidding project. The Final Rule governing competitive bidding ensures that at least 30 percent of bid winners are small businesses. Suppliers must obtain accreditation to participate in competitive bidding. The ONLY exception to the rule is a pharmacy that maintains a Part B supplier billing number to submit Part B drug claims and administer vaccinations. Ten agencies have been approved to accredit suppliers of DMEPOS. Important Links: Medicare DME Home Page Medicare DME blog Medicare DMe-Alert Archive DMEPOS Cost Drivers By William Popomaronis, R.Ph. Remembering that we are pharmacists and NOT accountants or Chief Financial Officers, in preparing to bid, try to select DMEPOS cost drivers that are relevant and easy to measure. Relevancy relates to the direct or indirect relationship it bears to the cost of doing business. Ease of measurement means that you must be able to allocate -- on a per transaction basis to each Medicare beneficiary -- the portion attributable to the DMEPOS activities consumed. DMEPOS cost drivers might include, but not be limited to, accreditation, inside/outside sales, patient demographics capture, insurance verification, claims processing and reconciliation, credit, delivery, telephone expenses, training, billing hardware and software maintenance, and remainder balance collection successes or write offs. From May 22nd through June 14th I’ll be “hittin the road” visiting the first 10 MSAs selected for competitive bidding. NCPA and PRS will conduct seminars that will provide business tools to assist pharmacists through the accreditation and DMEPOS bid processes. I will be speaking on understanding your DMEPOS claims processing business costs, including which services are essential or non-essential to providing service that meets or exceeds CMS quality standards. For more information – locations, dates, and times – or to register for a seminar, click here. Accredit wisely and bid smart! Hope to see you all at one of the seminars!

	William Popomaronis, R.Ph., is vice president, long term and home health care services for the National Community Pharmacists Association (NCPA). He is also the only pharmacist member of Medicare’s Program Advisory and Oversight Committee (PAOC), which provides advice on the development and implementation of the DME Competitive Acquisition Program.

	Bayer HealthCare, Diabetes Care, has underwritten the costs of this communication. The information expressed in this communication are the views of NCPA. Bayer is not responsible for the accuracy of the information expressed in this communication. Any questions related to DME Accreditation and/or Competitive Bidding for DMEPOS should be directed to the Centers for Medicare and Medicaid Services or NCPA.