Monday, February 11, 2013

Medicare Bidding - Could Hurt HME Providers

WASHINGTON, Feb. 5, 2013: Medicare Bidding Process Slams Home Medical Equipment Providers With Arbitrary Reimbursement Rates | PRNewswire | Rock Hill Herald Online:

""This is a sham," said Joel Marx, chairman of the board at AAHomecare and chairman of Medical Service Company in Cleveland.  He said the malfunctioning system also encourages "suicide low bids" by companies desperate to win contracts.  In fact, 244 economists, more than two dozen consumer and disability groups, 186 members of Congress, and the National Federation of Independent Business have opposed the current bidding system.

"By limiting which companies can provide the products and services, CMS can arbitrarily select prices as low as it wants and call it savings," said Marx. "This is not competitive bidding and there is no guarantee that the winning bidders can actually supply the products and services at the prices selected by CMS.""

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