Two senators on the powerful Senate Finance Committee introduced a bill Wednesday to delay implementation of the competitive bidding program for durable medical equipment, prosthetics, orthotics and supplies.
The bill introduced by Committee Chairman Max Baucus (D-Mont.) and ranking member Chuck Grassley (R-Iowa) is a companion bill (HR 6252) to legislation introduced in the House of Representatives last week.
Without legislative intervention, the program would go into effect on July 1 in 10 metropolitan areas nationwide. Further expansion for the program would be set for 2009.
Baucus and Grassley said they have more than 20 co-sponsors for their legislation.
There is widespread DME industry opposition to the plan, which requires suppliers to bid for contracts to meet equipment needs for Medicare beneficiaries. The program also has been the subject of Congressional panels investigating its impact on small businesses and beneficiaries.
In a press release issued by the senators through the finance committee, Baucus and Grassley say their bill would make the bidding process more fair and transparent, require suppliers to meet quality standards and make other improvements in the program.
"This legislation will lead to lower prices and higher quality medical products while ensuring that beneficiaries will still have access to the medical equipment and supplies they need," Grassley said.
Amending the nature of the program is important for ensuring that small businesses can continue to participate in the Medicare program, Grassley said.
Critics of the current plan contend that it discriminates against small businesses by requiring them to bid on servicing a large metropolitan area. Beneficiaries could suffer from the changes because small DME suppliers often provide a second layer of care and assessment for those with chronic medical conditions.
Under the Baucus-Grassley bill, contracts awarded under round one would be terminated and re-bid for those 10 areas. New contracts would then take effect in 18- 24 months. Round two contracts could not take effect before January 2011, and payment adjustments for DMEPOS in non-competitive bid areas would not take effect until round two is completed.
"We cannot allow a system breakdown within Medicare to compromise access to life-saving healthcare equipment and supplies for our nation's seniors," said Sen. George Voinovich (R-Ohio), one of the co-sponsors of the bill. "We must get Medicare and other entitlement spending under control, but a delay in the competitive bidding program is vitally important to ensure access to quality medical supplies and services under the Medicare program and to implement a comprehensive beneficiary education campaign prior to program changes going into effect."