ATLANTA--HME providers in the initial 10 competitive bidding areas have only a week left to register for their user IDs and passwords--and the registrations will determine whether CMS gets the number of bidders it had expected.

Providers who want to participate in the first round of Medicare bidding must register by Aug. 27 in order to access CMS' Internet-based bid submission system.

On July 27, the previous bidding deadline, CMS extended its bid window until Sept. 25. Bidders must be accredited or be in the process of becoming accredited to submit a bid; first-round bidders now have until Oct. 31 to become accredited in order to win a contract.

According to its updated timeline, CMS will conclude bid evaluation and begin its contracting process in January 2008, with winning suppliers to be announced in February. The agency will conduct an education campaign for beneficiary and referral agents from April 1 to July 1, when the competitive bidding rates are scheduled to go into effect.

Thus far, CMS has been mum about the numbers of registrants or bids it has received.

"[The American Association for Homecare] has asked for that information but has been told it would not be released," said Walt Gorski, AAHomecare vice president of government affairs, adding that there is a need for much more transparency in the competitive bidding system.

"Not only should the government tell us how many people are bidding, but the industry should know the criteria that CMS will use to evaluate bids before the evaluation takes place," Gorski continued. "And it should know the financial measures it is being judged by ... Not knowing these measures is like playing a football game where you don't know where the end zone is."

Already, industry sources are questioning CMS' estimates related to the bidding program. In its final rule, published in the April 10 Federal Register, the agency estimated that:

--Of the approximate 28,960 suppliers providing DMEPOS items in the initial CBAs, 15,973 will place bids;
--It will cost a supplier an average of $2,303.16 to prepare a bid;
--9,584 suppliers are expected to win contracts;
--68 percent of suppliers will furnish products subject to competitive bidding and will be affected by competitive bidding during the initial round;
--The average dollar loss in Medicare allowed charges per losing supplier in each CBA will be between $35,000 and $40,000;
--Suppliers in the CBAs who do not win contracts in the initial round of competitive bidding will lose a total of $275 million in 2008 and almost $2 billion in 2011.

Most stakeholders believe that the number of bidders is far fewer than CMS had anticipated. In recent weeks, accrediting organizations have said the number of applications they have received thus far is much lower than expected. (See HomeCare Monday, Aug. 13.)

Gorski said he thinks CMS was forced to extend the bidding process in order to correct problems with its online bidding system. But he said he does not believe that extending the bid deadline to Oct. 31 will result in a rash of new bidders.

"I don't think extending the time period [will make] a significant difference in the number of folks who plan on participating," he said.

For information on bid registration and deadlines, visit the Competitive Bidding Implementation Contractor Web site at www.dmecompetitivebid.com.