WASHINGTON--It's on the official calendar: A proposed rule on DME competitive bidding is slated for release in September, according to the Federal Register's semi-annual regulatory agenda.

The proposed rule is expected to detail exactly how CMS will implement the national bidding program, which is scheduled to begin in 10 of the nation's largest metropolitan statistical areas in 2007. The criteria that will be used to select these areas--which will not necessarily be the 10 largest in the country--has been a major concern during past meetings of the Program Advisory and Oversight Committee, which is charged with advising CMS on NCB implementation.

PAOC members also expect the notice of proposed rule making to address a number of related issues, including which products will be part of the bidding process, formulas that will be used to calculate payments and requirements that providers must meet to participate.

Before the proposed rule comes out, CMS has said it will release a draft of supplier quality standards--which will be required of every provider who participates in the Medicare program, not just those who take part in competitive bidding. PAOC members say they expect the quality standards will be released sometime this summer. The final rule for NCB is expected to be published by early summer 2006.

"We're just sort of in a limbo time right now," said PAOC member Cara Bachenheimer, vice president, government relations, for Invacare Corp., Elyria, Ohio. "It's a very aggressive schedule. We're hopeful they're going to stay on course."

Both national competitive bidding and supplier quality standards are mandated by the Medicare Modernization Act.

For more information about DME competitive bidding, including notes and presentations from past PAOC meetings, click here.