Another argument of DMEPOS Competitive Bidding has already been achieved: The reduction of the majority of providers.

Last year when Medicare published the 44 oxygen bid winners in the Miami MSA, our organization recorded the number of oxygen providers listed on Medicare's website for the area (Miami-Dade, Broward and Palm Beach counties). In April 2008 there were 501 oxygen providers listed in the Miami MSA. Today medicare.gov states that there are only 388 oxygen providers listed in the Miami MSA, a reduction of 113 providers.

According to the 10 "Deemed Accreditation Organizations for Suppliers of DMEPOS", there are only 240 accredited providers in the Miami MSA. The deadline for accreditation is September 30, 2009 and Medicare's website recommends that non-accredited companies submit applications for accreditation by January 31, 2009.

If the published number of accredited providers stands, then in the Miami MSA, a total of 261 oxygen providers (or 52% of providers) will be excluded from the Medicare program compared to last year. These results provide a greater number of provider cuts compared to the bidders of the Demonstration Projects in Polk County and San Antonio. In Round One of the 1999 Polk County Demonstration 16 suppliers were awarded contract out of 30 bidders. This calculates that only 47% of the bidders were excluded. In Round Two of Polk County 16 suppliers were awarded contract out of 26 bidders, which calculates to 38% of the bidders were excluded. In San Antonio 51 companies were awarded contracts from 79 bidders. This calculates to only 35% of the bidders that were excluded from the program. None of these cuts compare to the 52% that may be excluded from the program this October when mandatory accreditation is required or the 90% of the providers that may be excluded once the competitive bidding program restarts.

As providers prepare for next week's Washington Fly-in and the Competitive Bidding PAOC meeting and it will be important to present the fact that the goal of reducing providers through competitive bidding is already being achieved.

PAOC Agenda announced

Program Advisory and Oversight Committee (PAOC)
Meeting Agenda, Thursday, June 04, 2009, Marriott Hotel BWI

8:00 - 8:30 a.m. Public Registration

8:30 - 8:45 a.m. Opening Remarks

8:45 - 9:00 a.m. Introduction of New PAOC Committee

9:00 - 10:00 a.m. Background on the Program

• Standard Payment Rules
• Competitive Bidding Demonstrations
• Medicare Modernization Act of 2003
• 2008 Legislative Refinements

10:00 - 10:30 a.m. On-Line Bidding System

10:30 - 10:45 a.m. Mid-Morning Break

10:45 - 11:30 a.m. Education on Program Requirements and Bidder Responsibilities

11:30 - 12:00 p.m. Financial Documentation

12:00 - 1:30 p.m. LUNCH (On your own)

1:30 - 2:30 p.m. Licensure, Accreditation, and

Subcontracting Requirements

2:30 - 3:15 p.m. New Supplier Issues

3:15 - 3:30 p.m. Mid-Afternoon Break

3:30 - 4:00 p.m. Mail Order - Diabetic Testing Supplies

4:00 - 4:15 p.m. Tentative Timeline

4:15 - 5:00 p.m. Public Comments

To register to attend the PAOC meeting,