The Bid Preparation Worksheets include information about items in each product category for each Round 1 2017 competitive bidding area (CBA). The worksheets are designed to assist you with determining your estimated capacity and bid amount for each item in a product category. You should review these worksheets carefully when developing your bid(s).
How to Use the Worksheets
To complete the Bid Preparation Worksheet(s), begin by choosing the appropriate product category file(s) below. Open the appropriate file, and then select a CBA.
- The worksheets are divided into columns. Each item is identified by its Healthcare Common Procedure Coding System (HCPCS) code (second column) and followed by a description of that code (third column). Review the code description column to determine the specific number of products in a unit. In most cases, a unit is described as a single product; however, in a few cases, a unit may be more than one product, such as for leg extensions for a walker. In this case, a unit is a set of four.
- The column labeled Definition of a Bidding Unit indicates whether to submit a bid on a rental or purchase basis for the item. To ensure you submit your bid correctly, look at both the description of the code AND the definition of a bidding unit. For example, for enteral nutrients HCPCS code B4150, the code descriptor indicates that 1 unit = 100 calories of enteral formula, and the definition of a bidding unit indicates that the bid is based on a purchase. Therefore, you are submitting a purchase bid for one unit consisting of 100 calories of enteral formula.
- The column labeled Weight indicates the relative market importance of that item to other items in the product category. Items with a high number have a greater market importance than items with a low number.
- The sixth and seventh columns provide historic utilization information as a courtesy for bidders that want to know the number of items that Medicare paid for in a particular bidding area and the number of beneficiaries in the area who received these items. The 2014 Beneficiary Count column shows the number of beneficiaries in the bidding area who received the item in 2014, and the 2014 Allowed Units column shows the number of units that Medicare paid for in 2014 in the CBA. This background data is provided for informational purposes only. The General Notes section found at the top of each worksheet explains why the number of allowed units may differ from the number of beneficiaries served.
- The Bid Limit column shows the current Medicare fee schedule amount for the item. Bids must be at or below the fee schedule amount.
The next three columns are for you to fill in before you enter this information in Form B in the online DMEPOS Bidding System (DBidS).
- Enter your cost to buy one unit in the column labeled Your Cost to Purchase One (1) Unit.
- Enter Your Bid Amount in the next column. When determining your bid amount for one unit, consider all of your costs associated with furnishing the item, including your cost to buy one unit, your overhead costs, and profit.
Note: For oxygen items within the respiratory product category only, you will submit a bid amount for the rental of a payment class (or group) of items. The weight is combined for all the HCPCS codes in the payment class and the bid limit is the same for each item in the class. You will submit only one bid amount per class. For all other items within the respiratory product category, you will submit one bid amount for the purchase of one unit.
- The next column is for you to enter Your Estimated Capacity, or the number of units you can furnish per HCPCS code or payment class to Medicare beneficiaries in a CBA in a calendar year. To determine your capacity for each 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. For oxygen items in the respiratory product category, you must provide your estimated capacity for one year, which is the number of units in the payment class you estimate you can rent in a year. 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 capacity estimation carefully for each item.