NACDS Board Member Addresses Medicare Competitive Bidding Program Before U.S. House Panel

Main Category: Medicare / Medicaid / SCHIP
Article Date: 01 Nov 2007 - 3:00 PDT

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Jose Navarro of Navarro Discount Pharmacies testified on behalf of the National Association of Chain Drug Stores (NACDS) before the United States House of Representatives Small Business Subcommittee on Investigations and Oversight. The topic of the hearing was the Center for Medicare and Medicaid Services' (CMS) competitive acquisition program for certain Durable Medical Equipment, Prosthetics, Orthotics, and Supplies, (DMEPOS) and its impact on small business.

Durable medical equipment includes items such as diabetes monitors and test strips, walkers, hospital beds, wheel chairs and oxygen tents.

This new competitive bidding program was mandated by the Medicare Prescription Drug, Improvement, and Modernization Act of 2003 (MMA), and replaces the current Medicare fee schedule for certain DMEPOS. The program is currently being implemented in the first ten largest metropolitan statistical areas (MSAs) and includes bidding for ten categories of medical equipment and supplies. In 2009, the program will be expanded to 80 of the largest MSAs, and will expand to additional areas in the years thereafter.

Navarro is the former President and CEO of Navarro Discount Pharmacies, which has twenty locations in Dade County, FL. He now serves on its Board of Directors, as well as the NACDS Board of Directors.

"Retail pharmacies are the largest providers of DMEPOS services to Medicare patients and are in a unique position to monitor trends in diseases and therapy outcomes," said Navarro. "But some of the provisions of the competitive acquisition program and other rules proposed by CMS for DMEPOS suppliers could prevent pharmacies from effectively serving their Medicare patients."

The competitive acquisition program's onerous requirements, such as accreditation of pharmacies, and CMS' proposed $65,000 surety bond requirement for all DMEPOS suppliers, create significant administrative and financial burdens on pharmacies. The expansion of the program to establish national or regional competitive bidding areas for mail-order suppliers could significantly limit participation in the program by small pharmacies and reduce patient access to needed DMEPOS items and services.

In addition, diabetes testing supplies sold at retail pharmacies should not be subject to the competitive acquisition program. Pharmacists can play a central role in the management of chronic diseases such as diabetes, and they should be able to continue providing supplies and guidance to patients.

"Navarro Discount Pharmacies is a family business with an important health care role in the Florida community, and Mr. Navarro provides tremendous expertise on behalf of chain community pharmacy," said NACDS President and CEO Steven C. Anderson, IOM, CAE. "NACDS and its members - both large and small - are committed to ensuring access to diabetes testing supplies and other durable medical equipment for Medicare beneficiaries."

"We are grateful to Subcommittee Chairman Jason Altmire (D-PA) and Ranking Minority Member Louie Gohmert (R-TX) for examining the DMEPOS competitive bidding program and its impact on retail pharmacies nationwide," said Anderson.

http://www.nacds.org