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Bidding Suppliers

The Bid Preparation Worksheets include information about items in each product category for each Round 2 competitive bidding area (CBA) and for the national mail-order competition. The worksheets are designed to assist bidders with determining their estimated capacity and bid amount for each item in a product category. A supplier’s capacity is the estimated number of units it believes it can provide in the competitive bidding area in a calendar year. Bidders should review these worksheets carefully when developing their bids.

How to Use the Worksheets
The worksheets are divided into columns. Each item is identified by its Healthcare Common Procedure Coding System (HCPCS) code and followed by a description of that code. The HCPCS code is listed in the first column and a description of that code is provided in the next 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 diabetic test strips. In this case, a unit is 50 strips.

The column labeled Definition of a Bidding Unit indicates whether to submit a bid on a rental or purchase basis for the item. In order to ensure you submit your bid correctly, you will need to 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 bidding unit indicates that the bid is on a purchase basis. Therefore, you are submitting a purchase bid for one unit consisting of 100 calories of enteral formula.

The column labeled Weight provides 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 worksheets provide reference data that shows historic utilization information. The 2010 Beneficiary Count column shows the number of beneficiaries in the bidding area who received the item in 2010, and the 2010 Allowed Units column shows the number of units that Medicare paid for in 2010 in the bidding area. The 2010 information detailing the allowed units and beneficiary count is background information provided as a courtesy for those bidders that want recent information about the number of items paid for by Medicare in the area and the number of beneficiaries in the area who have received these items. This background data is provided for informational purposes only. The General Notes section found at the top of each Bid Preparation Worksheet explains why the number of allowed units may differ from the number of beneficiaries served.

The Bid Limit column shows the fee schedule amount for the item. Bids must be at or below the fee schedule amount.

Note your cost to buy one unit in the column labeled Your Cost to Purchase One (1) Unit.

The next column is for you to note Your Bid Amount before entering this information in Form B in DBidS.
When determining your bid amount for a unit, you need to consider your cost to furnish the item, including your cost to buy one unit, overhead costs, and profit. You will notice on the worksheets that for the oxygen product category only, you submit a bid amount for the rental of a class of items. The weight is combined for all the codes in the class and the bid limit is the same for the class or group of items. You can only submit one (1) bid amount per class.

The next column is for you to note Your Estimated Capacity before entering this information in Form B in DBidS, the online DMEPOS bidding system. We call the number of units you can furnish per HCPCS code or payment class to a Medicare beneficiary in a calendar year your CAPACITY. To determine your capacity for each HCPCS code, calculate the number of units that you currently furnish on a yearly basis and add any additional number of units or capacity you would be capable of providing annually at the start of the contract period. For items in the oxygen 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. It is important to know that the order that the HCPCS codes appear on the worksheet is not necessarily the order in which they will appear in DBidS. In particular, DBidS is designed to move completed data to the top of the bid sheet when you leave the bid sheet (i.e. you log out of the DBidS application, time out due to inactivity, or navigate away from the bid sheet). Always check your bid amounts and capacity carefully for each item.

To download the Bid Preparation Worksheet for a particular competitive bidding area, click on the corresponding Microsoft Excel or Adobe Acrobat file below.

(You will need Adobe Acrobat Reader to view or print items on this page.)

Please note the following updates:

  • The following HCPCS codes have been removed from the Standard Wheelchairs Bid Preparation Worksheet: E2622, E2623, E2624, and E2625. The bid weights have also been revised to reflect the removal of these codes.
  • The bid limits have been revised for 14 HCPCS codes for power wheelchairs (K0813 through K0829).

last updated on 01/06/2012


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