Because each product category in the next round of the DMEPOS CBP, Round 2028, will be included in a nationwide RID CBP for the first time, the number of contract suppliers selected to furnish items and services under 42 CFR § 414.414(h) is 125 percent of the number of suppliers that furnished at least 3 percent of total utilization for the lead item in the product category nationally during the most recent calendar year, and rounded to the nearest whole number, unless there would be less than 2 contract suppliers, in which case the number of contract suppliers will be 2.
CMS believes this methodology ensures a sufficient number of contracts are awarded to suppliers to meet beneficiary demand because:
- Bids are screened and evaluated to ensure that they are bona fide so that CMS can verify that the supplier can provide the product to the beneficiary for the bid amount.
- Suppliers must also meet financial standards.
- Larger suppliers tend to submit lower, more competitive bids due to their buying power.
- If it is subsequently determined that demand still isn't being met after contracts are awarded, CMS can award additional contracts at any time under 42 CFR § 414.414(i).