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WASHINGTON – With CMS projecting competitive bidding will save $17 billion over 10 years, the industry may have to open its wallet a little wider than it expected–wider than it can afford, some stakeholders fear–to repeal the program.

Earlier this year, officials at the Congressional Budget Office (CBO) said it would cost the industry $9.6 billion over 10 years to repeal the program. But that was based on an average reimbursement cut of 26% for Round 1, stakeholders say. In July, CMS officials announced an average reimbursement cut of 32% for Round 1.2.

Drug Store News

NCPA responds to CMS’ diabetes competitive bidding program

By Allison Cerra

ALEXANDRIA, Va. (Jul. 6) A group representing the nation’s independent pharmacies are urging caution as the Centers for Medicare and Medicaid Services continues its Medicare Part B durable medical equipment, prosthetics, orthotics and supplies competitive bidding program.

The National Community Pharmacists Association issued a statement Thursday urging caution against actions that possibly could “undermine or reverse the benefits of coordinated care,” as community pharmacies work on a daily basis with diabetes patients and physicians to improve health outcomes and lower healthcare costs.

ModernHealthcare.com

By Shawn Rhea

Two trade associations are once again voicing concern over the CMS’ plans to enact a competitive-bidding program for suppliers of durable medical equipment.

he CMS has released a list of the winning bid prices for the first round of its Medicare Part B durable medical equipment competitive bidding program, which is set to take effect in nine markets on Jan. 1, 2011. The winning bids are expected to save more than $17 billion over 10 years, according to the CMS. But the American Association for Homecare in a news release criticized the winning bid prices, saying they would “translate into unsustainable reimbursement rates for homecare providers.”

Also see the small business impact story on the Competitive Bidding IPD home page: http://www.thecre.com/blog/2010/07/cms-states-small-business-receive-less-than-half-of-contracts/

MEDICARE TO SAVE AVERAGE OF 32 PERCENT FOR SOME MEDICAL EQUIPMENT AND SUPPLIES IN SELECTED AREAS; BENEFICIARIES TO SAVE

Medicare beneficiaries in nine areas of the country who use certain medical equipment and supplies will see average savings of about 32 percent off the current cost of those items.  The savings will be realized through the first round of a new Competitive Bidding Program that will be used to determine the price that Medicare pays for certain durable medical equipment, prosthetics, orthotics and supplies (DMEPOS).  The program replaces Medicare’s existing fee schedule amounts with market-based prices.