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[Federal Register Volume 78, Number 41 (Friday, March 1, 2013)]
[Notices]
[Pages 13878-13880]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2013-04752]

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DEPARTMENT OF HEALTH AND HUMAN SERVICES

Centers for Medicare & Medicaid Services

[Document Identifiers CMS-588 and CMS-10169]

Agency Information Collection Activities: Proposed Collection; 
Comment Request

AGENCY: Centers for Medicare & Medicaid Services, HHS.

    In compliance with the requirement of section 3506(c)(2)(A) of the 
Paperwork Reduction Act of 1995, the Centers for Medicare & Medicaid 
Services (CMS) is publishing the following summary of proposed 
collections for public comment. Interested persons are invited to send 
comments regarding this burden estimate or any other aspect of this 
collection of information, including any of the following subjects: (1) 
The necessity and utility of the proposed information collection for 
the proper performance of the agency's functions; (2) the accuracy of 
the estimated burden; (3) ways to enhance the quality, utility, and 
clarity of the information to be collected; and (4) the use of 
automated collection techniques or other forms of information 
technology to minimize the information collection burden.
    1. Type of Information Collection Request: Revision of a currently 
approved collection. Title of Information Collection: Electronic Funds 
Transfers Authorization Agreement Use: The primary function of the 
Electronic Funds Transfer Authorization Agreement (CMS 588) is to 
gather information from a provider/supplier to establish an electronic 
payment process.
    The legal authority to collect this information is found in Section 
1815(a) of the Social Security Act. This section provides authority for 
the Secretary of Health and Human Services to pay providers/suppliers 
of Medicare services. Under 31 U.S.C. 3332(f)(1), all federal payments, 
including Medicare payments to providers and suppliers, shall be made 
by electronic funds transfer. 31 U.S.C. 7701 (c) requires that any 
person or entity doing business with the federal government must 
provide their Tax Identification Number (TIN).
    The goal of this submission is to renew the data collection. Only 
two minor revisions for systems requirements will be made at this time, 
specifically adding a street address line for the location of the 
financial institution and adding an additional National Provider 
Identification (NPI) number collection field for those providers/
suppliers who have more than one NPI. Form Number: CMS-588 (OCN: 0938-
0626). Frequency: Occasionally. Affected Public: Private Sector 
(business or other for-profits) and Not-for-profit institutions. Number 
of Respondents: 94,000. Total Annual Responses: 94,000. Total Annual 
Hours: 23,500. (For policy questions regarding this collection contact 
Kim McPhillips at 410-786-5374. For all other issues call 410-786-
1326.)

[[Page 13879]]

    2. Type of Information Collection Request: Revision of a currently 
approved collection. Title of Information Collection: Medicare Durable 
Medical Equipment, Prosthetics, Orthotics and Supplies (DMEPOS) 
Competitive Bidding Program. Use: Since 1989, Medicare has been paying 
for durable medical equipment (DME) and supplies (other than customized 
items) using fee schedule amounts that are calculated for each item or 
category of DME identified by a Healthcare Common Procedure Coding 
System code. Payments are based on the average supplier charges on 
Medicare claims from 1986 and 1987 and are updated annually on a factor 
legislated by Congress. For many years, the Government Accountability 
Office and the Office of Inspector General of the U.S. Department of 
Health and Human Services have reported that these fees are often 
highly inflated and that Medicare has paid higher than market rates for 
several different types of DME. Due to reports of Medicare overpayment 
of DME and supplies, Congress required that CMS conduct a competitive 
bidding demonstration project for these items. Accordingly, CMS 
implemented a demonstration project for this program from 1999-2002 
which produced significant savings for beneficiaries and taxpayers 
without hindering access to DMEPOS and related services. Shortly after 
a successful demonstration of the competitive bidding program, Congress 
passed the Medicare Prescription Drug, Improvement and Modernization 
Act of 2003 and mandated a phased-in approach to implement this program 
over the course of several years beginning in 2007 in 10 metropolitan 
statistical areas (MSAs). The statute specifically required the 
Secretary to establish and implement programs under which competitive 
bidding areas are established throughout the United States for contract 
award purposes for the furnishing of certain competitively priced items 
and services for which payment is made under Medicare Part B. This 
program is commonly known as the ``Medicare DMEPOS Competitive Bidding 
Program.''
    CMS conducted its first round of bidding for the Medicare DMEPOS 
Competitive Bidding Program in 2007 with the help of its contractor, 
the Competitive Bidding Implementation Contractor. CMS published a 
Request for Bids instructions and accompanying forms for suppliers to 
submit their bids to participate in the program. During this first 
round of bidding, DMEPOS suppliers from across the U.S. submitted bids 
identifying the MSA(s) to service and the competitively bid item(s) 
they wished to furnish to Medicare beneficiaries. CMS evaluated these 
bids and contracted with those suppliers that met all program 
requirements. The first round of bidding was successfully implemented 
on July 1, 2008.
    On July 15, 2008, however, Congress delayed this program in section 
154 of the Medicare Improvements for Patients and Providers Act of 2008 
(MIPPA). MIPPA mandated certain changes to the competitive bidding 
program which included, but are not limited to: A delay of Rounds 1 
(competition began in 2009) and 2 of the program (competition began in 
2011 in 70 specific MSAs); the exclusion of Puerto Rico and negative 
pressure wound therapy from Round 1 and group 3 complex rehabilitative 
power wheelchairs from all rounds of competition; a process for 
providing feedback to suppliers regarding missing financial 
documentation; and a requirement for contract suppliers to disclose to 
CMS information regarding subcontracting relationships. Section 154 of 
the MIPPA specified that the competition for national mail order items 
and services may be phased in after 2010 and established a rule 
requiring that a bidder demonstrate that its bid covers 50 percent (or 
higher) of the types of diabetic testing strips, based on volume (the 
``50 percent rule'') for national mail order competitions. As required 
by MIPPA, CMS conducted the competition for the Round 1 Rebid in 2009. 
The Round 1 Rebid contracts and prices became effective on January 1, 
2011.
    The Affordable Care Act, enacted on March 23, 2010, expanded the 
Round 2 competition by adding an additional 21 MSAs, bringing the total 
MSAs for Round 2 to 91. The competition for Round 2 began in December 
2011. CMS also began a competition for National Mail Order of Diabetic 
Testing Supplies at the same time as Round 2. The Round 2 and National 
Mail-Order contracts and prices have a target implementation date of 
July 1, 2013.
    The MMA requires the Secretary to re-compete contracts not less 
often than once every 3 years. Most Round 1 Rebid contracts will expire 
on December 31, 2013. (Round 1 Rebid contracts for mail-order diabetic 
testing supplies ended on December 31, 2012.) Consequently, we are 
currently in the process of re-competing the competitive bidding 
contracts in the Round 1 Rebid areas.
    The most recent approval for this information collection request 
(ICR) was issued by OMB on October 10, 2012. Since then, CMS has 
decided to sequentially update the paperwork burden necessary to 
administer the program as it expands nationally and cycles through 
multiple rounds of competition. Specifically, we are now seeking to 
update our burden estimates for certain contract maintenance forms for 
Round 2 and the national mail-order competitions. These include Form C 
and the Contract Supplier's Disclosure of Subcontractors form. We are 
also requesting approval of two additional forms: The Change of 
Ownership (CHOW) Purchaser Form and the CHOW Contract Supplier 
Notification Form, which will be utilized in all rounds of competition. 
Finally, we are retaining without change Forms A, B, and D and their 
associated burden under this ICR. We note that the information 
collection for Forms A and B is already complete. We intend to continue 
use of the Forms in future rounds of competition. Form Number: CMS-
10169 (OCN: 0938-1016). Frequency: Occasionally. Affected Public: 
Private Sector (business or other for-profits) and Individuals or 
households. Number of Respondents: 19,035. Total Annual Responses: 
19,035. Total Annual Hours: 9,311. (For policy questions regarding this 
collection contact Michael Keane at 410-786-4495. For all other issues 
call 410-786-1326.)
    To obtain copies of the supporting statement and any related forms 
for the proposed paperwork collections referenced above, access CMS' 
Web site address at http://www.cms.hhs.gov/PaperworkReductionActof1995, 
or Email your request, including your address, phone number, OMB 
number, and CMS document identifier, to Paperwork@cms.hhs.gov, or call 
the Reports Clearance Office on (410) 786-1326.
    In commenting on the proposed information collections please 
reference the document identifier or OMB control number. To be assured 
consideration, comments and recommendations must be submitted in one of 
the following ways by April 30, 2013:
    1. Electronically. You may submit your comments electronically to 
http://www.regulations.gov. Follow the instructions for ``Comment or 
Submission'' or ``More Search Options'' to find the information 
collection document(s) accepting comments.
    2. By regular mail. You may mail written comments to the following 
address: CMS, Office of Strategic Operations and Regulatory Affairs, 
Division of Regulations Development, Attention: Document Identifier/OMB 
Control Number ------, Room C4-26-05, 7500 Security Boulevard, 
Baltimore, Maryland 21244-1850.

[[Page 13880]]

    Dated: February 26, 2013.
Martique Jones,
Deputy Director, Regulations Development Group, Office of Strategic 
Operations and Regulatory Affairs.
[FR Doc. 2013-04752 Filed 2-28-13; 8:45 am]
BILLING CODE 4120-01-P
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