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The Competitive Bidding Program requires providers and suppliers of certain durable medical equipment, prosthetics, orthotics, and supplies (DMEPOS) to submit bids to Medicare for their products. Qualified suppliers with winning bids are then chosen as Medicare-approved contract suppliers. Medicare began Round 1 of the program in January 2011. Mail-order diabetic supplies are a product category included in Round 1.
Under this new program, if you have Original Medicare (Part A and Part B) and live in a competitive bid area (CBA), you may have to use a Medicare contract supplier if you want Medicare to help you pay for any diabetic supplies you receive by mail order. Mail-order diabetic supplies include those you order by phone, e-mail, or Internet, and that are delivered by a common carrier such as the U.S. Postal Service, Federal Express, or United Parcel Service.
Program Timeline
| January 1, 2011 | Round 1 of the DMEPOS Competitive Bid Program went into effect in several metropolitan CBAs in the following states: CA, FL, IN, KS, KY, MO, NC, OH, PA, SC, and TX. |
| July 1, 2013 | Round 2 of the DMEPOS Competitive Bid Program is scheduled to expand to an additional 91 metropolitan CBAs across the country. On the same date, a national mail-order program for diabetic supplies will go into effect in all parts of the United States, including the District of Columbia, Puerto Rico, the U.S. Virgin Islands, Guam, and American Samoa. |
| 2014–2016 | The DMEPOS Competitive Bid Program will be expanded to metropolitan regions in all 50 states. |
How does the program affect me if I use mail-order diabetic supplies?
Currently, the DMEPOS Competitive Bid Program affects only those beneficiaries with Original Medicare who live in a Round 1 competitive bid area. Starting in July 2013, Medicare will implement a national mail-order program for diabetic supplies that will affect everyone with Original Medicare in the United States and its territories.
If you do not know whether your home ZIP code is within a Round 1 competitive bid area, you should first use our Competitive Bid Area Search Tool. Then choose from the situations below to find out how the program may affect you.
Can I still get my diabetic supplies from my local pharmacy?
Yes, you can. The Competitive Bid Program and that national mail-order program for diabetic supplies does not include pharmacies or other retail stores. However, if you go to your local store to get your supplies, you will probably pay more for these supplies than you would if you bought them from a mail-order Medicare contract supplier. Both you and the Medicare Program can save money each time you use a mail-order contract supplier; however, it's up to you whether or not you obtain your supplies by mail.
Where can a get a list of Medicare contract suppliers?
Simply enter your zip code into the Medicare Supplier Directory search tool on the Medicare website at www.medicare.gov/supplier. The directory provides names, addresses, and contact information for suppliers that provide services or products under the Medicare program. You can also get this information by calling Medicare at 1-800-MEDICARE (1-800-633-4227).
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