Bid News Blog

From: HME News

‘This is the first indication of a rate reduction based on the bid’

By Liz Beaulieu Editor

FRANKLIN, Tenn. – If you still think competitive bidding doesn’t affect you because you’re not in a Round 1 or Round 2 CBA, here’s a wakeup call.

HealthSpring, which owns and operates Medicare Advantage plans in 11 states and Washington, D.C., notified its contracted DME providers in an April 6 letter that it plans to adjust its rates based on the new competitive bidding rates. The kicker: The company states that “this is a corporate initiative to standardize our DME fee schedules across all states and markets.”

From: Columbus Business First

From: HME News

BALTIMORE—All is well. That was the word about Round 1 of competitive bidding from the Centers for Medicare and Medicaid Services at last week’s meeting of the Program Advisory and Oversight Committee.

After all, agency representatives said, of the 54,000 calls the 1-800 Medicare line has received about competitive bidding, only 43 were complaints.

What?

“There seems to be a very large disconnect that CMS has no problems,” said Walt Gorski, vice president of government relations for the American Association for Homecare and a member of the PAOC. “We look at it as 54,000 people calling in to express concerns—and only in nine competitive bidding areas. Imagine what is going to happen as the realities of competitive bidding set in and there is a ten-fold expansion in the next round.”

From: HME News

By Liz Beaulieu Editor

BALTIMORE – It doesn’t matter how you slice it and dice it. Some providers say they don’t think competitive bidding is a good way to set pricing for home medical equipment products and services—period.

Providers were among the attendees of an April 1 conference organized by Prof. Peter Cramton, a vocal critic of the current competitive bidding program. One of the purposes of the conference: To stage a mock auction based on an alternative model for the program he has designed.