Bloomberg Covers Controversial Competitive Bidding

July 13th, 2012 by @lamberts

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.


6 Responses to “Bloomberg Covers Controversial Competitive Bidding”

July 30, 2012 at 2:52 pm, People for Quality Care said:

People for Quality Care has lots of great literature about competitive bidding avaialble. We can send it to you to give to your customers to inform them about what they are in for! just let us know. We have found that most people don’t even know what competitive bidding is until it’s too late, so great job being proactive! We want people to be able to chooose good HME providers like you.


August 06, 2012 at 9:01 am, Ashley Plauche said:

Sure, that’d be wonderful! You can send it to our corporate address on Broadway (found here). Thanks for stopping by and for being a champion for our homecare readers!


September 22, 2012 at 11:04 pm, Rich said:

I am very disappointed in our Congress the very people who’s main concern is to protect their constituents have failed the American people by passing the health care bill without knowing what it actually contains. It is also irresponsible of them to lower medicare fees which are already to low, it would nice however if the government would pay 21.3% of the Doctors overhead expenses.


August 09, 2012 at 6:12 pm, Warner Rumps said:

Good article, I think you made your point well.


August 09, 2012 at 8:40 pm, Chara Flinchbaugh said:

I’m glad I stumbled across this article, it cleared up a lot of misconceptions I had.


August 20, 2012 at 10:21 am, Ashley Plauche said:

The media is starting to really hone in on this issue, which helps Medicare beneficiaries, their families, and the community understand the significant detrimental effects of this anti-“competitive bidding” program. The information put out by the Centers for Medicare & Medicaid Services (CMS) fails to address the numerous problems identified in the program and paints an unrealistic, overly-optimistic view. Let us know if you’d like more information on any of the subjects addressed by the Bloomberg article; thanks!


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