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Medicare bidding demonstration

This article was originally published in The Gray Sheet

Executive Summary

HCFA payment rates for hospital beds, manual wheelchairs, oxygen, non-customized orthotics and nebulizer dispensed drugs are set 20 percent lower than national fee schedule rates in three San Antonio counties. As authorized by the Balanced Budget Act of 1997, HCFA reviewed bids from 79 suppliers to select those with the lowest rates. Between six and 29 companies were selected from each product category to ensure beneficiary choice
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