Competitive Bidding Program Hurts DME Market, Association Study Finds
This article was originally published in The Gray Sheet
Executive Summary
Medicare's plan to make payments based on competitive bids from durable medical equipment vendors in nine markets could have unintended economic consequences, according to a study released Aug. 10 by the American Association for Homecare
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Bill introduced to repeal competitive bidding program
H.R. 3790 is introduced Oct. 13 in the House by Rep. Kendrick Meek, D-Fla., and 34 cosponsors to end Medicare's controversial competitive bidding program for durable medical equipment, prosthetics, orthotics and supplies (DMEPOS). The bill would halt a bidding process that began in nine metropolitan areas on Oct. 21. CMS says the competitive bidding program would save Medicare up to $1 billion annually once fully implemented, but the American Association for Homecare, which represents equipment makers and home health care providers, argues that the bidding program will drive DMEPOS retailers out of business and ultimately reduce patient access to care (1"The Gray Sheet" Aug. 17, 2009). A lobbying drive by DMEPOS manufacturers and home health care advocates in 2008 moved Congress to make changes and delay the implementation date (2"The Gray Sheet" July 14, 2008)
Bill introduced to repeal competitive bidding program
H.R. 3790 is introduced Oct. 13 in the House by Rep. Kendrick Meek, D-Fla., and 34 cosponsors to end Medicare's controversial competitive bidding program for durable medical equipment, prosthetics, orthotics and supplies (DMEPOS). The bill would halt a bidding process that began in nine metropolitan areas on Oct. 21. CMS says the competitive bidding program would save Medicare up to $1 billion annually once fully implemented, but the American Association for Homecare, which represents equipment makers and home health care providers, argues that the bidding program will drive DMEPOS retailers out of business and ultimately reduce patient access to care (1"The Gray Sheet" Aug. 17, 2009). A lobbying drive by DMEPOS manufacturers and home health care advocates in 2008 moved Congress to make changes and delay the implementation date (2"The Gray Sheet" July 14, 2008)
Competitive Bidding Hurdles Highlight Difficulties Of Curbing Device Costs
The fits and starts in establishing a Medicare competitive bidding program for durable medical equipment illustrate the challenges to reducing federal spending on medical devices, speakers at a May 22 Institute of Medicine workshop said