This week, Bloomberg Government (the government portion of Business Week‘s parent company) released a 26 page study on Competitive Bidding for Home Medical Equipment. This contributes to the growing number of media, scholars, and economists who have concluded that the “Competitive Bidding” program is flawed, lacks long-term sustainability, artificially limits the number of providers available to seniors, and ultimately will fail.
Bloomberg Government investigates “the business implications of government action”, and their research on Competitive Bidding raises serious doubts about the viability of the program. A summary of Bloomberg’s report, issued by the American Association for Homecare, included the following points:
- The Centers for Medicare & Medicaid Services may have overstated the savings of the program’s first year,
- An 85% reduction in providers occurred in Round One, going from 2,300 providers to a mere 356,
- The program design encourages unrealistic, low-ball bids that may not be sustainable by not using the standard-recognized clearing price for bidders and instead forcing 1/2 of the “winners” to accept prices below their bid price,
- The Centers for Medicare & Medicaid Services may not be tallying all of the beneficiary concerns and issues as “complaints”, minimizing your voice & opinion,
- Bloomberg Government encourages the Centers for Medicare & Medicaid Services to analyze Part A and other Part B claims of Round One.
Bloombert Government policy analyst Brian Rye reports:
What do you think? It’s coming to Knoxville next year. Is this what you want? If not, call your elected representatives and let him/her know that you do not support Competitive Bidding for Home Medical Equipment. You can reach the Senate switchboard at 202-224-3121 and the House of Representatives at 202-224-3121.