MED Suppliers Network Weekly Update-June 30, 2011

Round 1 Updates:

CMS has sent out 3 updates to information on different matters that could be pertinent to your company whether involved in Competitive Bidding or not.  Below is the topic and the link for the complete article from CMS. 

Auto Denial of Claims Submitted with a GZ Modifier:  http://www.cms.gov/MLNMattersArticles/downloads/MM7228.pdf

Claims Modifiers for Use in the DMEPOS Competitive Bidding:
http://www.cms.gov/MLNMattersArticles/Downloads/SE1035.pdf

Edit to Deny Claims for Repairs to Capped Rental DME:
http://www.cms.gov/MLNMattersArticles/downloads/MM7212.pdf

Round 2 Tips & Tasks:
Tip:   When submitting the bid, you will need the following hardcopy items (if CMS follows the same criteria as Round 1). When the Round 2 information is published we will update the information and send it to you.

Task: Locate the following items and have them in a folder or place of your choice so you have them readily on hand when time to submit a bid. You may need to meet with your CPA to begin talks of having this information readily available when needed.

Financial Statements for the Last (immediate one (1) year prior) calendar year:

1.  Income Statement-includes revenue, adjustment to revenue, cost of goods sold, expenses by category, Net Income/Loss

2.  Balance Sheet-includes current assets, total assets, current liabilities, total liabilities, stockholder or owner’s equity

3.  Statement of cash flow-sectioned into different areas as resulting from operating activities, financing activities and investing activities

4.  Tax return extract for the last operating year (calendar or fiscal year)-this is the revenue and expense portion of the organization’s tax return 
    a. If tax return has not been filed and supplier has requested an extension of time, the tax extension form filed with the IRS must be submitted
     b. Tax extension form must be submitted with other hardcopy documents
     c. If tax extension filed, the tax extract that is filed with the extension to the IRS, it must be submitted also
    d. The final tax extract must be sent to CBIC within three (3) business days of filing the return with the IRS.
    e. Tax returns that are date after the date of the extension to file are not acceptable and the bid will be rejected.
    f.  If other deductions are claimed as expenses, must send documentation details to support
    g. If bidding supplier is a subsidiary of a parent company
             i. If subsidiary files its own tax return, submit only the subsidiary financial documents.
            ii. If subsidiary does not file its own tax return, submit both parent and subsidiary documents and parent company tax return extract.

MED Suppliers Network Weekly Update-June 23, 2011

This past week MED Suppliers Network exhibited at the Case Managers Society Association Annual Convention in San Antonio, TX.  The exhibit was a great success and we had access to over 2,200 case managers to promote our MED Members on the website, www.medsuppliersnetwork.com and how easy it is to locate a supplier closest to their patient.  All were excited about the easy access and ways to help their patient. 

Form C for Round 1 of Competitive Bidding

For those in Round 1 of Competitive Bidding, the 2nd quarter Form C is due July 29, 2011. 

Tip:  The importance of having good credit and proper credit lines with your manufacturers cannot be overstated.  The members who are doing well within Round 1 of Competitive Bidding have established strong relationships with their manufacturers to move the relationship to a partnership level.  Getting the manufacturers involved early and establishing compliance levels along with making sure proper credit lines and financing lines are established before the bidding process was essential to their success.  The MED Group will be providing a webinar for our members to learn about business credt and what you can do to help increase your credit score and lower your borrowing costs.  We will be announcing that webinar within the next couple of months.

Task: 

1. Run your credit report-choose one of the following below-remember this will be used to find problems with your credit report.  You will also need to submit a credit report with your bid submission (numerical number included, but it cannot be older than 90 days at the time of bid submission).
        a.  Experian-www.experian.com     b.  Transunion-www.transunion.com     c.  Equifax-www.equifax.com     d.  Dun & Bradstreet-www.dnb.com     e.  Standard & Poor's-www.standardandpoors.com
2. Verify if the information is correct (name, social security number or TIN, address and claims)
3. Settle any issues and disputes that are on the credit report
        a.  There are procedures on each website on "How to dispute a charge or claim"

Double check the credit report to be sure it is updated to show disputes or items that have been settled or changed
     a.  This could take up to 60 days to be processed and handled
     b.  Be ready to provide proof if something was paid that should be marked as such on the credit report
     c.  Very difficult to have an item removed from a credit report-could be settled, disputed or paid (usual and customary)

Prepare your Company for Round 2 if it proceeds

You should search and verify if any company you are currently doing business with or plan to do business with in the future (subcontracting) as well as any business partners or employees are on the OIG exclusion list.  If they are on the exclusion list, you should be aware that this will be checked by CMS and this will eliminate your company from the bid process.