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AAHomecare and Maryland DME Provider Take Medicare Agency to Court Over Competitive Bidding Program
Date:6/19/2013

WASHINGTON, June 19, 2013 /PRNewswire-USNewswire/ -- The American Association for Homecare (AAHomecare), along with a home medical equipment provider from Maryland, announced today the filing of a lawsuit in U.S. District Court in Washington, D.C., asking that the scheduled July 1 expansion of the Medicare competitive bidding program (CBP) for durable medical equipment (DME) be stopped because of serious licensing irregularities.

The lawsuit names Department of Health and Human Services (HHS) Secretary Kathleen Sebelius as the defendant. HHS oversees the Centers for Medicare and Medicaid Services (CMS), which designed and implemented the controversial bidding program that provides oxygen therapy, power wheelchairs, respiratory assistance, hospital beds, diabetic testing supplies, and other critical home medical equipment to Medicare beneficiaries.

In the lawsuit, AAHomecare maintains that CMS violated the rules governing the bidding program by allowing providers without the proper state and local licenses required to service Medicare beneficiaries in those jurisdictions to submit bids and later awarded contracts to those same companies. Furthermore, the suit maintains that bids by these unlicensed providers were wrongly used in calculating the Medicare payment amounts for DME products and services and thus the payment amounts should be invalidated.

"The Secretary's failure to reject CBP bids from bidders to provide DME in States where bidders did not, as of May 1, 2012, have all required State and local licenses, was unlawful under the Secretary's rules and other authority," the lawsuit states. "Despite the requirement of her rules, and the promises made to Congress, the Secretary has failed not only to reject the CBP bi
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SOURCE American Association for Homecare
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