Health Care Financing Administration 7500 Security Blvd., Baltimore, MD. 21244-1850

65 -- MEDICARE DMEPOS COMPETITIVE BIDDING DEMONSTRATION SOL PGBA 99-1 DUE 032999 POC Elaine Myers, PGBA, 803-788-0222, Ext.35505 Announcement of the Medicare DMEPOS Competitive Bidding Demonstration Project. Under the authority provided by section 1847 of the Social Security Act, as added by section 4319 of the Balanced Budget Act of 1997, the Health Care Financing Administration (HCFA) plans to conduct a competitive bidding demonstration to establish prices for selected categories of durable medical equipment, prosthetics, orthotics, and supplies (DMEPOS) provided to Medicare beneficiaries residing in Polk County, Florida. The purpose of the demonstration is to determine whether competitive bidding results in lower prices than are currently paid under the Medicare fee schedule, and to test the operation of the bidding process developed for this project. Bids will be solicited for items falling into the following product categories: home oxygen therapy, enteral nutrition therapy, hospital beds and accessories, surgical dressings, and urological supplies. Suppliers able to supply the items and provide the supportive services for these items may participate in the bidding competition. A Request for Bids Package will be distributed starting on February 10, 1999. Suppliers who received Medicare reimbursement in 1997 for providing items in these product categories to Medicare beneficiaries residing in Polk County will be notified by mail of the intent to solicit bids and may request the Request for Bids Package. Others may request a Request for Bids Package by writing to the contractor HCFA selected to administer the demonstration (no telephone requests will be honored): Palmetto Government Benefits Administrators Medicare Competitive Bidding Demonstration Post Office Box 100164 Columbia, SC 29202-3164 The Request for Bids Package contains supplier and product standards that must be met to participate in the project, instructions for the submission of bids, and descriptions of the bid evaluation process and the payment arrangements that will apply during the demonstration. A bidders' conference will be held in Lakeland, Florida on February 23, 1999. Bidders may call 888-289-0710 for information on this conference. The deadline for receiving bids is March 29, 1999. The bids will be evaluated by a panel operated by Palmetto GBA and supervised by staff from HCFA. Winning bidders will be designated and offered contracts in August 1999. Claims processing based on the prices established through the bidding process is scheduled to begin on November 1, 1999. Posted 02/05/99 (I-SN295499). (0036)

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