Bid News Blog

From: Home Care Magazine

CUMMING, Ga., Sept. 21, 2012—According to the Accredited Medical Equipment Providers of America (AMEPA), nearly 18 months ago University of Maryland, Professor of Economics Peter Cramton held a “Mock Auction” in order to demonstrate an alternative to Medicare’s flawed bidding program called the Market Pricing Program (MPP). Now the program has a chance to become law, as Congressman Tom Price (R-Atlanta, GA) introduced his bill “The Medicare DMEPOS Market Pricing Program Act of 2012” on Friday.

From: The Hill’s Congress Blog

By Rep. Aaron Schock (R-Ill.)

As diabetes plagues our nation, countless seniors rely on diabetic testing supplies (DTS) from their local pharmacists in order to live with and manage their disease. Unfortunately, an expansion of Medicare’s Competitive Bidding Program could disrupt that relationship and make it harder for seniors to obtain their DTS. This cannot happen. The House Small Business subcommittee hearing today offers the opportunity to re-examine the critical issue of ensuring continuity in how our seniors access essential diabetes testing supplies and face-to-face counseling on their proper use.

CMS finally admitted today what DME suppliers and independent experts have long known, the agency’s bidding system for home medical equipment “is not an auction.”  The admission was made by Laurence Wilson, Director of CMS’ Chronic Care Policy Group in response to a question at a hearing by the House Small Business Committee’s Subcommittee on Healthcare and Technology, Medicare’s Durable Medical Equipment Competitive Bidding Program: How are Small Suppliers Faring?

In response, Dr. Peter Cramton of the University of Maryland who also testified at the hearing, noted that the term “competitive bidding” is synonymous with auction and that, because the law requires CMS to conduct competitive bidding, the agency is not in compliance with the law.

From: The House Committee on Small Business/Subcommittee on Healthcare and Technology

Medicare’s Durable Medical Equipment Competitive Bidding Program: How are Small Suppliers Faring?

On Tuesday, September 11, 2012, at 10:00 A.M. the Subcommittee on Healthcare and Technology will hold a hearing titled, Medicare’s Durable Medical Equipment Competitive Bidding Program: How are Small Suppliers Faring? The hearing will be held in Room 2360 of the Rayburn House Office Building.

For years, Medicare’s benefit for durable medical equipment, prosthetics, orthotics and supplies has been plagued by a fee schedule with high error rates and above-market costs for the Medicare program, beneficiaries and taxpayers.  In response, in 2003, Congress established a competitive bidding program designed to provide greater value while ensuring beneficiary access to supplies and satisfaction with them.