Yes, and here’s how:
CMS has a method that is designed to ensure the proper number of contracts are awarded to suppliers to meet the demand. The method is as follows:
Each product category in Round 2028 will be included in a nationwide RID CBP for the first time. The number of contract suppliers selected under 42 CFR § 414.414(h) is 125% of the number of suppliers that furnished at least 3% of total utilization for the lead item in the product category nationally during the most recent calendar year, and rounded to the nearest whole number, unless there would be less than 2 contract suppliers, in which case the number of contract suppliers will be 2.
How will this method ensure contract suppliers can meet demand? Well, the DMEPOS Competitive Bidding Program sites several reasons:
- Bids are screened to ensure that the supplier can provide the product to the beneficiary for the bid amount.
- Suppliers must meet financial standards.
- Larger suppliers tend to submit lower, more competitive bids due to their buying power.
Finally, 42 CFR § 414.414(i) allows CMS to award additional contract at any time if demand still isn’t met after the initial contracts are awarded the items and services covered under Medicare Part B and described under section 1847(a)(2) of the Social Security Act.
