Bipartisan Group Of Senators Asks Senate Leadership In Letter To Oppose Delaying Medicare Durable Medical Equipment Bidding Program

Main Category: Medicare / Medicaid / SCHIP
Also Included In: Medical Devices / Diagnostics
Article Date: 30 Jun 2008 - 8:00 PDT

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A bipartisan group of five senators has written a letter asking Senate leaders to oppose a House-approved bill (HR 6331) to delay implementation of the Medicare competitive bidding program for durable medical equipment, CQ HealthBeat reports. The letter -- addressed to Senate Majority Leader Harry Reid (D-Nev.) and Minority Leader Mitch McConnell (R-Ky.) and signed by Sens. John Rockefeller (D-W.Va.), Tom Coburn (R-Okla.), John Kerry (D-Mass.), Dianne Feinstein (D-Calif.) and Larry Craig (R-Idaho) -- said concerns about the program "can be addressed without legislatively delaying" the program, which is scheduled to take effect July 1. The House on Tuesday approved delaying the program for one year (CQ HealthBeat, 6/26).

Under the program, CMS will select DME suppliers to participate in Medicare based on bids they submit. The 2003 Medicare law mandated the program as part of a larger effort to implement competitive bidding. In 2008, the program will operate in 10 of the largest Metropolitan Statistical Areas and will apply to 10 of the top DME, prosthetics, orthotics and supplies product categories. In 2009, the program will expand to an additional 70 MSAs and will continue to expand in future years. The program also will apply to additional product categories in future years. The program likely will result in an average 26% decrease in the prices of medical equipment in the 10 MSAs, according to CMS (Kaiser Daily Health Policy Report, 6/26).

The letter also stated that full implementation of the program would save $1 billion annually, resulting in lower coinsurance for Medicare beneficiaries. The letter says competitive bidding "ensures that beneficiaries receive their (durable medical equipment) from accredited and financially viable suppliers, two important safeguards that beneficiaries did not have prior to competitive bidding" (CQ HealthBeat, 6/26).

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