Effective July 1, 2013, Medicare implemented a national competitive bidding program for mail order diabetic supplies as mandated by section 1847(a) of the Social Security Act. The HCPCS codes for mail order diabetic supplies must be billed with modifier KL. The single payment amounts established under this program took effect on July 1, 2013, and are located on the Competitive Bidding Implementation Contractor (CBIC) website:
http://www.dmecompetitivebid.com/palmetto/cbicrd2.nsf/DocsCat/Single%20Payment%20Amounts
These amounts replaced the fee schedule amounts for mail order diabetic supplies established in accordance with section 1834(a) of the Social Security Act. Although the fee schedule amounts are no longer being used for Medicare payment purposes, they are maintained and updated on the fee schedule for use in establishing bid limits for future competitions. Please note that these amounts are not being used for Medicare payment purposes and that the single payment amounts on the CBIC website are the amounts being used for Medicare payment purposes effective for claims with dates of service on or after July 1, 2013.