Medicare Market Shares of Mail Order Diabetes Test Strips From April Through June 2018

The Medicare Prescription Drug, Improvement, and Modernization Act of 2003 required CMS to phase in a Competitive Bidding Program for durable medical equipment, prosthetics, orthotics, and supplies. In July 2008, mail-order diabetes test strips became part of the Competitive Bidding Program in certain limited areas, and in July 2013, this was expanded to include a National Mail-Order Program for diabetes testing supplies. The Medicare Improvements for Patients and Providers Act of 2008 (MIPPA) prohibits CMS from awarding contracts in the National Mail-Order Program 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 provided to Medicare beneficiaries. (This is known as the "50 percent rule.") MIPPA requires OIG to determine the market shares of the types of diabetes test strips before each round of bidding to assist CMS in ensuring that bidding suppliers meet the 50-percent rule.