Two letters signed by 132 members of the U.S. House of Representatives urge the leaders of the Ways and Means Committee and its subcommittee on health to delay the "controversial and flawed" durable medical equipment "competitive bidding program."
Reports say the letters cite homecare providers that were excluded from the bidding program "apparently through no fault of their own," discrepancies in information and contract awards and a lack of transparency at the Centers for Medicare and Medicaid Services concerning the evaluation of bids and calculation of reimbursement rates.
The primary authors of the letters are Congressmen John Tanner (D-Tenn.), David Hobson (R-Ohio) and Jason Altmire (D-Pa.)
CMS officials in mid-May announced the names of 325 suppliers that have signed contracts with Medicare to provide durable medical equipment, prosthetics, orthotics and supplies in 10 communities across the country. There was no mention of a delay.
"This bidding program has been ill-conceived, poorly planned and a wholly mishandled effort on the part of CMS," said Tyler J. Wilson, president and chief operating officer of the American Association for Homecare. "It will put thousands of good homecare providers out of business and patients' access to quality home medical equipment and services will suffer as a result. We are pleased that so many members of the House recognize the magnitude of these problems and have gone on record to urge delay and review of the program."
The letters conclude: "At the very least, an internal review should be conducted to ensure the accuracy and effectiveness of the criteria for future bidding. We all agree that it is of the utmost importance that we protect access to quality medical supplies for all of Medicare beneficiaries and people with disabilities. Therefore, we urge that the implementation of Round 1 be delayed for at least a year."
AAH officials are calling for an 18-month delay in implementation of competitive bidding until questions about patient access to medical equipment and services and adverse impact on homecare providers can be fully assessed. The association has recommended an alternative pricing process that its says is designed to achieve accurate reimbursement rates but also preserve access to quality homecare for Medicare beneficiaries.
The bidding program applies to oxygen therapy, power wheelchairs, hospital beds and several other categories of DME and services used by beneficiaries in the home.
The first round is scheduled for implementation on July 1 in 10 metropolitan areas in the United States: Charlotte, N.C.; Cincinnati and Cleveland, Ohio; Dallas-Fort Worth, Texas; Kansas City, Mo.; Miami and Orlando, Fla.; Pittsburgh, Pa.; Riverside, Calif. and San Juan, Puerto Rico. Seventy additional areas are scheduled to expand in 2009.
CMS has extended the accreditation deadline for the second round.