Medicare Changes How Clients Receive Diabetic Supplies

We receive a lot of encouragement from carriers for agents to develop close relationships with pharmacies. Right now local pharmacies are experiencing difficulty from Medicare’s change in delivery of Diabetic testing supplies. It would be a good time to contact your local pharmacy and see if they are going to be able to provide supplies and develop a referral relationship where the agent refers his clients to that pharmacy for their supplies and the pharmacy refers their clients to the agent for insurance questions and needs.

Per CMS:

• July 1, 2013 Medicare is starting a national mail-order program for diabetic testing supplies.
• Starting in July 2013, Medicare is scheduled to expand the competitive bidding program to more areas of the country. This program changes the way Medicare pays for certain durable medical equipment, prosthetics, orthotics, and supplies (DMEPOS). It also changes which suppliers Medicare will pay to supply these items to you.
• Under this program, suppliers submit bids to provide certain medical equipment and supplies at a lower price than what Medicare now pays for these items. Medicare uses these bids to set the amount it will pay for those equipment and supplies under the new program. Qualified, accredited suppliers with winning bids are chosen as Medicare contract suppliers.
• This adjustment will affect durable medical equipment and diabetic supplies.