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

ds from unlicensed bidders, but she actually entered into contracts with them. These contracts must be invalidated because the bids of these awardees should have been rejected. The Secretary's failure to follow her own rules threatens to cause severe and irreparable injury to Plaintiffs and all other Medicare-participating DME suppliers that sought to participate in the CBP."

The lawsuit notes that there are licensing issues in Colorado, Ohio, Maryland, North Carolina, Tennessee, Virginia, and Washington, and that AAHomecare is in the process of gathering information from other states. In Maryland, 112 unlicensed bidders were awarded contracts. Cited in the lawsuit is a June 14 letter from CMS Administrator Marilyn Tavenner in which she acknowledges to Rep. David Roe (R-Tenn.) that CMS accepted bids from approximately 30 out of 98 unlicensed suppliers who bid to provide services and equipment to Medicare patients in Tennessee. The lawsuit notes that CMS sent letters to these unlicensed successful bidders in Tennessee notifying them that their contract awards were being invalidated.

"The action taken in Tennessee by CMS," the suit contends, "will not put all properly licensed bidders in Tennessee in the position they would have been if the Secretary had, as she was required to have done, rejected the bids submitted by unlicensed bidders. Plaintiffs are not aware of similar letters being sent in other States, even though unlicensed bidders received Round 2 CBP contracts in many other States. By this action, Plaintiffs seek to require the Secretary to redetermine successful bidders, and recal
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SOURCE American Association for Homecare
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