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

artisan group of 227 House members signed a letter to CMS asking for a delay in implementing the program until licensing and other problems could be resolved.

Joining AAHomecare in filing the lawsuit today was Home Mediservice, Inc., of Havre de Grace, Maryland.

"This Competitive Bidding Program is just one more example of a program that was pursued with a good purpose—to save Medicare money—but in the end, it's design is only serving to destroy an industry that cares for people in their own homes and already saves the Medicare program millions of dollars a year by keeping those patients out of more costly institutions," said Mark Richardson, president of Home Mediservice, Inc. "The only thing we'd like to accomplish with this suit with AAHomecare is to force CMS to play by their own rules."

The lawsuit asserts that successful bidders who rejected contract offers would be "severely and irreparably harmed" by the process because their rejection of contracts was based on low reimbursement rates influenced by the bids from unlicensed bidders. Moreover, the lawsuit says unsuccessful licensed bidders will be "severely and irreparably harmed" because bids were won by unlicensed bidders that CMS "unlawfully" failed to reject.

Thus, the lawsuit asked the court for injunctive relief requiring that contracts for all bidders that were not properly licensed by the deadline of May 1, 2012, be rescinded. It also asks for remedial steps including recalculating correct payment amounts without the bids of unlicensed providers, determining which bids from licensed bidders should have been accepted, and giving licensed bidders who rejected contracts because they were improperly lowered another opportunity to accept them after corrected payment amounts are calculated.

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SOURCE American Association for Homecare
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