BALTIMORE--CMS has selected Columbia, S.C.-based Palmetto GBA to help administer its DME competitive bidding program as it begins in 10 yet-to-be-named cities next year.

As a DMEPOS Competitive Bidding Implementation Contractor, Palmetto will prepare the request for bids, perform bid evaluations, select qualified suppliers and set payments for all competitive bidding areas. Palmetto, which recently lost its bid to continue as the Region C DME contractor, also will assist CMS and its contractors in monitoring program effectiveness, access and quality. According to the agency, Palmetto is additionally charged with overseeing an education program for beneficiaries, suppliers and referral agents.

"Awarding this contract is a key step in timely implementation of the Medicare DMEPOS Competitive Bidding Program, which will reduce beneficiary out-of-pocket expenses and save the Medicare program money while ensuring beneficiary access to quality DMEPOS items and services," according to an announcement published on CMS' Web site Friday afternoon.

Palmetto, the current Region C DMERC, also operates the National Supplier Clearinghouse and acts as the Statistical Analysis Durable Medical Equipment Regional Contractor. Cigna Government Services will take over Medicare DME claims administration for Region C in April (see HomeCare Monday, Oct. 9).

CMS has the option of selecting two additional Competitive Bidding Implementation Contractors when it expands the competitive bidding areas in the future.