Medicare Market Shares of Mail Order Diabetes Test Strips From October Through December 2016

The Medicare Prescription Drug, Improvement, and Modernization Act of 2003 requires CMS to phase in a Competitive Bidding Program for durable medical equipment, prosthetics, orthotics, and supplies. In July 2013, the program was expanded to include a National Mail-Order Program for diabetes testing supplies. The Medicare Improvements for Patients and Providers Act (MIPPA) prohibits CMS from awarding a contract to a supplier of diabetes test strips if the supplier's bid does not cover at least 50 percent, by volume, of all types of diabetes test strips on the market. (This is known as the "MIPPA 50 percent rule.") MIPPA requires OIG to determine the market shares of the types of diabetes test strips before each round of competitive bidding.