February 1, 2013
On January 30, 2013, the Centers for Medicare & Medicaid Services (CMS) released the reimbursement rates that Medicare will pay for diabetes testing supplies (DTS) in the National Mail Order Program for DTS. The new rates are expected to be effective on July 1, 2013.
Under the new rates schedule, the average Medicare-allowed monthly payment amount for DTS will be reduced from an average of $77.90 for a box of 100 test strips, to $22.47.
The change in the reimbursement amount will occur in two phases:
1. Beginning April 1, 2013, DTS obtained at retail will be reimbursed at the current Durable Medical Equipment, Prosthetics/Orthotics and Supplies fee schedule amount for mail order DTS. For a box of test strips, this will lower the reimbursement amount from an average of $77.90 for a box of 100 (current retail fee schedule rate), to an average of $67.00 (the current mail order fee schedule rate).
2. Subsequently, upon implementation of the National Mail Order (NMO) program for diabetes testing supplies (currently scheduled for July 1, 2013), both mail order and retail DTS will be paid at the single payment rate for the NMO established by CMS through the competitive bidding process. The single payment rate was the figure released by CMS yesterday ($22.47).
For more information, visit the CMS website.