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Motion for Injunction to stop DME bidding denied

By Chelsey Ledue

The American Association for Homecare has been denied a motion for a preliminary injunction in a federal lawsuit seeking to halt the "faulty implementation" of the durable medical equipment competitive bidding program, which was originally scheduled for July 1.

The lawsuit was filed June 9 against Health and Human Services Secretary Michael Leavitt and Acting Administrator Kerry Weems of the Centers for Medicare and Medicaid Services (CMS).

The AAH has argued that the implementation of the bidding program has resulted in numerous violations of the Medicare Prescription Drug, Improvement and Modernization Action of 2003 (MMA), the Small Business Act and the Administrative Procedures Act.

According to U.S. District Judge Ricardo M. Urbina's opinion, "Because the court concluded that the plaintiffs are unable to demonstrate an irreparable injury, it denies the request for the extraordinary remedy of a preliminary injunction."   

"While we are disappointed that the court did not grant a preliminary injunction, we are encouraged that the court did not bar our claim on jurisdictional grounds," AAH President Tyler J. Wilson said. "The court did not rule on the merits of the case. We believe the law supports our position, and we hope the court will uphold our statutory challenge. In the days and weeks ahead, we will press for a summary judgment from the court."

The AAH is also asking providers, suppliers, patients and referral agents who are having problems with the first round of the bidding program to contact the association so that it can document specific problems. This will allow the AAH to identify any harm to or confusion for the beneficiaries.