CMS details bidder capacity

Friday, May 17, 2019

WASHINGTON – CMS will use a bidder’s estimated capacity—or their historic capacity plus their projected increase in capacity—along with their bid amount, to rank bids, reports the coalition behind “(CMS’s) newly released capacity policy shows how influential a bidder’s capacity is to setting the rate,” said Mark Higley, vice president of regulatory affairs for the VGM Group. “While CMS does not guarantee volume, bidders who overestimate their capacity could lead the SPA to be artificially low.” CMS will evaluate the estimated capacities of bidders to try to avoid over-estimates, the coalition says, but it is important that bidders understand the role that capacity plays in setting the rates. The coalition encourages providers to visit and use the bid calculators on the website when formulating their bids.