Under Round 1 of the bid program, the term "mail-order" was defined as supplies ordered remotely (i.e. by phone, email, etc.) and delivered to the patient using a common carrier, such as UPS or FedEx. This created a loophole where non-contract suppliers were still technically able to deliver and bill for supplies as long as they used their own delivery vehicles or personnel.
However, for the upcoming national bid, CMS has closed this loophole by redefining "mail-order" as any supplies shipped or delivered directly to a patient's home,
regardless of the method of delivery. This is in line with CMS' original intent that patients physically go to a retail location and pickup their supplies at a local storefront if they wish to use a non-contract supplier.
Unlike other product categories, non-contract diabetic suppliers may not grandfather in "mail-order" supplies. Once the national program is implemented, patients will have to go through a contracted supplier if they wish to have diabetic supplies delivered to their home. Otherwise, they may pick up supplies at any local storefront.
Unlike with Round 1, the national mail-order program is not limited to certain bid areas. It includes all ZIP codes in all parts of the US, including all 50 states, the Virgin Islands, Guam, and American Somoa.
If you'd like to learn more about what to expect during Round 2 of Competitive Bidding, MiraVista will be holding a live webinar on November 1, 2011 to help suppliers better understand the impact of the program on their businesses. More information and a free map of Round 2 impact zones plotted by zip codes is available at:
www.miravistallc.com/recent_services.php.
Customer Retention in CBA
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