BALTIMORE--In an attempt to shed some light on questions providers have raised about DME competitive bidding and the bidding process, CMS presented a series of bidders' teleconferences last week.

The three calls, including information on bid application and submission, bidding rules, financial documentation and product categories, were conducted by the agency's competitive bidding implementation contractor.

In one example, an official said the CBIC had received questions asking why it is necessary to register twice--once for a user ID and password and again when using the application system for the first time. These steps are necessary to provide extra security to protect the bid, the official explained.

Following are a selection of questions covered on the calls:

Q: Will there ever be a time with any specific product that you may award more than five contracts?

A: Yes. That's just a minimum number. So it's not limited to five. That's just to ensure that [there are] at least five contracts. So if the demand is for many more than that, then it will be awarded that way.

Q: Our financial and our banking runs fiscal year. And you're stating that you want calendar year. What are we to do in that scenario when everything in our company--all our financial statements, our tax returns--are by fiscal year?

A: It doesn't really matter. If you keep your accounting books and records on the fiscal year, fiscal year compilations and tax return schedules are fine.

Q: If you're not ready to submit your bid yet, can you fill out Form A with the general information and then go back at a later time and do your bid?

A: Yes you can enter your Form A information. Just be sure to click "Submit" so that you can save your data. And then when you're ready to go back and enter all of your information in Form B, the bidding sheet, that's fine.

Q: On the total estimated capacity, you can't bid on more than 20 percent capacity, as I understand it, or you get knocked down to 20 percent. Are we putting these bids based on the total number of units that we have out on the street? For example, if I have 100 oxygen patients and I can't service more than 20 percent growth, does that mean that I can only service a total of 120 patients in the coming year?

A: No, this is only for bidding purposes, so after you're awarded a contract, it does not affect that at all. This just ensures that in the bid process that we award at least five contracts for each product category in the [competitive bidding area].

Q: If you have multiple locations, can you selectively bid? In other words, can you submit a bid for a product category for one of the locations but not for another?

A: Only if you have different products in different locations. If you have multiple stores in a CBA, but only specific stores are providing certain products, you would need to submit separate bids. You would need to have another authorized official and another [user ID and password].

Q: What do I do when the SADMERC lists no product classification code, but the form requires [it]?

A: Call the SADMERC, (877) 735-1326.

Q: If a provider submits a zero in their ability to increase their capacity, will this preclude them from being awarded a contract?

A: No, it would not preclude them.

Q: What if the price of a product goes sky high and exceeds the contract reimbursement? Are you allowed to refuse a patient based on profitability?

A: No, a contract provider must accept assignment.

Q: What information should I provide if there is no model number?

A: There should be model numbers for all products. Some manufacturers include the model number in the name ...We realize that there are no model numbers for diabetic supplies. In that case, you would use your product number.

Q: If we do not win a competitive bidding contract, can we still do repairs?

A: Any Medicare-enrolled suppler can do repairs. Repairs [are] not a bid item, so you would be reimbursed at the fee schedule [rate].

To access transcripts of the bidding conferences, click here.

For questions, call the CBIC helpline at (877) 577-5331 or e-mail cbic.admin@palmettogba.com.

To visit the CBIC Web site, go to www.dmecompetitivebid.com.