Expansion of Competitive Bid Rates to Non-Competitive Bid Areas

California

• CMS’s decision to dramatically cut rates January 1, 2016, by applying competitive

bid rates used in urban areas to areas the Congress expressly excluded from the competitive bidding program is inappropriate.

o While CMS does provide a 10 percent increase to these average competitive bid rates,

that amount falls far short of the cost of providing services in these areas. In addition, several ZIP codes excluded from competitive bidding areas will be paid at the competitive bidding rate.

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Red Competitive Bid Area (SPA) Green CMS Rural Area (SPA+10%) No Color Non-Competitive Bid Area (SPA)