In an effort to save money, the Centers for Medicare & Medicaid Services is expanding its competitive bidding program for durable medical equipment, prosthetics and other supplies (DMEPOS).

The agency recently announced that it selected about 800 suppliers to participate in the program, which is being expanded to 91 markets in July.  Click here for a list of suppliers.

The program, which is designed to save money, changes the amount that Medicare pays for certain durable medical equipment, prosthetics, orthotics, and supplies.

In addition, CMS announced that another 18 companies from around the country have accepted contracts to provide mail-order diabetic testing supplies at competitively bid prices nationwide.

All contract suppliers must comply with Medicare enrollment rules, be accredited, meet applicable licensing requirements, and meet financial standards.  Ninety percent of contract suppliers are already established in the competitive bidding area, the product category, or both.  Small suppliers, those with gross revenues of $3.5 million or less as defined for the DMEPOS competitive bidding program, make up about 63 percent of the Round 2 contract suppliers, according to a CMS press release.

Based on bids submitted by these suppliers, beneficiaries and Medicare will see prices, on average, 45 percent lower than Medicare now pays for the same items included in the Round 2 areas and 72 percent lower on mail-order diabetic testing supplies nationwide.