Navigation Links
New Medicare Equipment Bidding Program for Riverside, California Area is Rife with Errors, Says the American Association for Homecare
Date:4/7/2008

Bidding Program Will Put Durable Medical Equipment Providers Out of Business and May Disrupt Services to a Quarter Million Seniors and Disabled People in Southern California

Bakersfield, Fresno, Los Angeles-Long Beach, Sacramento, San Diego, San Jose, and Visalia Are Next

ARLINGTON, Va., April 7, 2008 /PRNewswire-USNewswire/ -- A new Medicare bidding program for durable medical equipment (DME) scheduled to be implemented in the Riverside-San Bernardino-Ontario, California area on July 1, 2008, will put many DME providers out of business. The program will likely disrupt homecare services for many of the 249,000 seniors and people with disabilities who are eligible for Medicare in the Riverside metropolitan area.

The bidding program is scheduled to hit six other metropolitan statistical areas in California next year, including Bakersfield, Fresno, Los Angeles-Long Beach, Sacramento, San Diego, San Jose, and Visalia.

In late March, DME providers in the first ten competitive bidding regions received letters from the Centers for Medicare and Medicaid Services (CMS) explaining whether they had been offered a contract, been disqualified from bidding, or bid outside of the bidding range for a product. Those DME providers that did not receive contracts for a given Medicare item or service are shut out of the Medicare program for three years.

The American Association for Homecare has received word from hundreds of DME providers who say they have been improperly disqualified and thereby removed by CMS from the bidding process. That includes more than a dozen cases of disqualified bidders in the Riverside and San Bernardino areas.

The congressionally mandated competitive bidding program was designed to reduce the number of DME providers and reduce reimbursement rates for oxygen therapy, hospital beds, wheelchairs, and other types of home-based equipment and care in Medicare. Reimbursement rates are already set by Medicare and reimbursement rates for oxygen have already been cut by nearly 50 percent over the past 10 years. The DME industry has long argued that this new program will needlessly punish established, high-quality providers, reduce the DME industry's focus on service, and harm patient access to care.

The DME industry consists primarily of small to medium-sized businesses serving relatively small service areas. The average DME company receives about 50 percent of its business from Medicare patients. Loss of this business will result in layoffs and business failure for many DMEs.

"The Secretary of Health and Human Services has called home-based healthcare 'radically' more efficient than institutional care, yet the federal government is determined to aggressively dismantle the nation's homecare infrastructure at a time when our healthcare system needs it the most," said Tyler J. Wilson, president of the American Association for Homecare. "DME spending is the smallest sliver of Medicare, less than two percent of spending, and is the slowest-growing segment. Taxpayers may ultimately face higher costs as hospital stays lengthen due to more complicated hospital discharge logistics, more emergency room visits, and cost-shifting from Medicare Part B to Part A services."

The American Association for Homecare is pursuing regulatory, legislative, and legal remedies to allow for review of the cases of those DME providers that have been disqualified and is calling for the suspension of the first round of the bidding program until questions about patient access and harm to DME providers can be fully assessed.

The American Association for Homecare (AAHomecare) represents providers of durable medical equipment and related services and supplies as well as equipment manufacturers. AAHomecare members serve the medical needs of millions of Americans who require home oxygen equipment, wheelchairs and other mobility products, hospital beds, medical supplies, inhalation drug therapy, home infusion, and other medical equipment, therapies, services, and supplies delivered in the patient's home. AAHomecare's provider members operate more than 3,000 home care locations in all 50 states. See http://www.aahomecare.org.


'/>"/>
SOURCE American Association for Homecare
Copyright©2008 PR Newswire.
All rights reserved

Related medicine news :

1. GAO Report Confirms: Medicare Underpays for Anesthesia Services; Nurse Anesthetists Assure Seniors Access to Safe Anesthesia Care
2. Texas Supreme Court Rules Against Medicare HMOs in Hospital Reimbursement Fight
3. Owner and Operator of Florida Durable Medical Equipment Company Convicted of Medicare Fraud
4. Just Completed Studies Reveal Impact of New Medicare Reimbursement Regulations
5. AHCA: Rescinding $2.7 Billion Medicare Cuts Top Issue for Fall Legislative Agenda
6. University of Texas Study Details Lengthy Payment Delays for Medicare Part D Prescription Drug Claims, Confirming Need for Legislative Fix
7. Medicare Spending Caps Cause Seniors to Stop Meds
8. Medicare Prescription Drug Benefit, Nonprofit Hospitals, Ambulatory Surgery Centers, Statistical Methods, and Pay-For-Performance Highlighted In the Latest INQUIRY Journal
9. Medicare Every Diabetic Counts Project Gears Up for Kick-Off
10. Medicare Cuts to Physicians Will Harm Washington Seniors
11. More than 10,000 Medicare Patients in Montana Could Be Hit by Proposed Cuts to Home Oxygen Therapy; Access to Power Wheelchairs Would Also Decrease
Post Your Comments:
*Name:
*Comment:
*Email:
(Date:6/23/2017)... ... , ... MD Now Urgent Care opened its newest location on ... marks the urgent care center's eighth location in Miami-Dade county. , The center's address ... The new clinic offers a wide array of services to patients in ...
(Date:6/23/2017)... ... June 23, 2017 , ... Ross Insurance ... With the Federal Emergency Management Agency’s (FEMA) recent update of flood zones, more ... 2012, the Biggert-Waters Act was enacted to reflect the actual risk in flood ...
(Date:6/23/2017)... ... ... Ulster University, Magee Campus in Northern Ireland is hosting The Schools for ... to graduate students exciting new and innovative hope research based on iFred’s “Schools for ... Improvement Service of the Western Health & Social Care Trust (WHSCT) in partnership with ...
(Date:6/23/2017)... ... 23, 2017 , ... Jusino Insurance Services, a locally owned ... greater Chicago metropolitan area, is embarking on a charity drive in conjunction with ... Founded in 1897, Hephzibah Children’s Association is one of the oldest social services ...
(Date:6/23/2017)... ... June 23, 2017 , ... Radabaugh ... planning to families and business owners in North Central West Virginia, is embarking ... services to differently abled residents in the region. , The Stepping Stones organization ...
Breaking Medicine News(10 mins):
(Date:6/13/2017)... June 13, 2017 Zimmer Biomet Holdings, Inc. (NYSE ... announced that the U.S. Food and Drug Administration (FDA) has ... 2015 relating to its Zhejiang, China ... "The successful clearance of the Warning Letter related ... facility is a measure of the progress we have made ...
(Date:6/10/2017)... June 9, 2017  Shane K. Burchfield, DPM, is recognized by ... as a Podiatrist in Alabama . ... First Foot Care. He brings over 20 years of experience, as ... and healthcare, to his role. ... PC is pleased to welcome you to his practice," ...
(Date:6/8/2017)... , June 8, 2017  Less than a ... hit more than 200,000 companies, including hospital networks, in ... heralded as one of the largest online extortion attempts ... the healthcare market, it is imperative that providers understand ... their data from this — and many other very ...
Breaking Medicine Technology: