Round 2 and the National Mail-Order Summary
The Medicare Improvements for Patients and Providers Act of 2008 (MIPPA) required the competition for Round 2 to occur in 2011 in 70 metropolitan statistical areas (MSAs) and authorized competition for national mail-order (NMO) items and services after 2010. The Affordable Care Act of 2010 expanded the number of Round 2 MSAs from 70 to 91 areas. MIPPA allowed for the subdivision of MSAs with populations over eight million into multiple competitive bidding areas (CBAs). Most Round 2 MSAs had only one CBA; however, the three largest MSAs (Chicago, Los Angeles, and New York) were subdivided into multiple CBAs, so a total of 100 CBAs were in Round 2. Round 2 included eight product categories.
The Centers for Medicare & Medicaid Services (CMS) also conducted an NMO competition for diabetic testing supplies at the same time as the Round 2 competition. The NMO CBA encompassed all parts of the United States, including the 50 states, the District of Columbia, Puerto Rico, the U.S. Virgin Islands, Guam, and American Samoa.
Round 2 and NMO contracts and prices became effective on July 1, 2013. Beneficiaries with Original Medicare who obtained competitively bid items across the eight product categories in those CBAs were required to obtain those items from a contract supplier unless an exception applied. Round 2 and NMO contracts and prices expired on June 30, 2016.
CBAs/ZIP CODES
Round 2 included 100 CBAs and the NMO CBA encompassed all 50 states, the District of Columbia, Puerto Rico, the U.S. Virgin Islands, Guam, and American Samoa.
PRODUCT CATEGORIES
There were eight product categories included in Round 2. The NMO competition included diabetic testing supplies.
Fact Sheets
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Updated: 12/29/2023