Published: 2009-06-15 15:14:17
Author: Chris Silva | American Medical News | May 4, 2009
Washington -- The Obama administration is proceeding with a Medicare durable medical equipment competitive bidding program it inherited from the previous administration. Absent another legislative intervention, the program will start again in 2010.
Earlier this year, the White House delayed the effective date of a rule outlining final details for competitive bidding in order to review late changes approved by the Bush administration. But the Centers for Medicare & Medicaid Services announced that the new April 18 effective date would not be delayed any further, prompting criticism from the American Assn. for Homecare and other organizations representing suppliers."We are very disappointed that CMS has moved forward with this program without allowing more opportunity to examine it," said Walter Gorski, vice president of government affairs for the association. "As designed, the program will eliminate approximately 90% of suppliers in any marketplace. We believe that is unacceptable, especially when all efforts by the [Obama] administration and Congress are aimed at job promotion and creation."
The competitive bidding program was originally launched July 1, 2008, in an effort to lower DME costs, enhance quality and prevent fraud. Beneficiaries in selected areas who needed certain equipment were required to obtain it from suppliers chosen by the government through a bidding process. But the initiative was halted after two weeks when lawmakers agreed to an 18-month moratorium under the Medicare Improvements for Patients and Providers Act.
If Congress had not stopped the program, it would have limited Medicare coverage of selected equipment in 10 metropolitan areas to suppliers that submitted winning bids. CMS since has made minor changes to the program required by the legislation, including preparing to conduct a second competition to select suppliers.
Despite the final rule, CMS said it will have no immediate effect on how Medicare patients obtain durable medical equipment, prosthetics, orthotics and supplies. Beneficiaries may still use current suppliers.