A final rule was issued by the Centers for Medicare & Medicaid Services (CMS) final rule for its competitive bidding program for durable medical equipment, prosthetics, orthotics and supplies, which will begin in April 2008. The program will operate in competitive bidding areas in 10 of the largest Metropolitan Statistical Areas, excluding New York, Chicago and Los Angeles, and will apply to 10 of the top product areas, including power wheelchairs, oxygen equipment and supplies and hospital beds and accessories. CMS will expand the program to 70 additional MSAs in 2009 and further expand it in 2010 to additional areas and items. Required under the Medicare Modernization Act (MMA), suppliers will bid to furnish items in particular competitive bidding areas. Contracts will be awarded to a sufficient number of winning bidders in each area to ensure access and service to high-quality items. CMS estimates the program will save $1 billion annually when fully implemented in 2010.

The final rule is available at http://a257.g.akamaitech.net/7/257/2422/01jan20071800/ edocket.access.gpo.gov/2007/pdf/07-1701.pdf.