The Bid Preparation Worksheet and Utilization Reports include data about the items (identified by the Healthcare Common Procedure Coding System (HCPCS) code) in each of the 16 product categories for each competitive bidding area (CBA) in Round 2021. They are designed to assist you with determining your bid amount and estimated capacity for the lead item in the product category. We also suggest using the Lead Item Pricing Calculator to determine your lead item bid amount’s impact on the non-lead items in the product category.
You should review the Bid Preparation Worksheet and the Utilization Reports carefully before entering your bid amount and expected capacity for the lead item in the Durable Medical Equipment, Prosthetics, Orthotics, and Supplies (DMEPOS) Bidding System, DBidS. Contract suppliers are responsible for providing the lead item and all non-lead items in the product category to any Medicare beneficiary in the CBA.
The Bid Preparation Worksheet contains the lead item HCPCS code for each product category, a description of each lead item HCPCS code, the projected demand for the lead item in 2021, and a field for you to enter your bid amount for the lead item. When determining your bid amount for the lead item, consider all of your costs associated with furnishing the lead item, including your cost to buy one unit, overhead costs, and profit. It is also very important to consider your costs associated with furnishing the non-lead items when determining your bid amount for the lead item. Bid amounts for used, refurbished, remanufactured, or rental items will not be accepted. Please refer to the Requirement to Submit a Bona Fide Bid fact sheet for additional information.
The Bid Preparation Worksheet also provides a field to enter your estimated capacity, which is the number of lead item units that you believe you can furnish in the CBA in one calendar year. To determine your estimated capacity for each lead item HCPCS code, calculate the number of units that you currently furnish on a yearly basis and add any number of units you would be capable of providing annually at the start of the contract period. Your estimated capacity is for bidding purposes only and does not limit you to that number should you be awarded a contract.
Important: Always check your bid amounts and estimated capacity carefully for each lead item.
The Utilization Reports include allowed units for the lead item and the non-lead items in the product category. The Utilization Reports also indicate the ratios relative to the lead item that will be used to calculate the single payment amounts for the non-lead items and the relative ratio to be used to calculate new, used, and rental amounts where applicable. The ratios are based on the historic differences in the fee schedule amounts for the lead item and non-lead items.