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American Association for Homecare Urges Congress to Enact Market-Based Alternative to Medicare's Bidding Program for Home Medical Equipment
Date:12/12/2011

sh market-based prices around the country and would require Medicare to make fundamental changes to ensure the long-term viability of the pricing program.  Key components are:

  • The Market Pricing Program is designed to achieve an accurate market price.
  • Bids are binding for the bidders and cash deposits are required to ensure that only serious homecare providers participate.
  • The bid price is based on the clearing price, not the median price of winners.
  • The program includes the same equipment and services as the current bidding system and would be implemented across the country during the same timeframe. 
  • Two product categories per market area would be bid. Eight additional product categories in that same area would have prices reduced based on auctions conducted simultaneously in comparable geographic areas. 
  • Bid areas are smaller geographically than the currently used bidding units (metropolitan statistical areas) and are more homogeneous.

In addition to the 244 economists, more than two dozen consumer and disability groups, 165 members of Congress, and the National Federation of Independent Business oppose Medicare's current competitive bidding system. 

The American Association for Homecare represents durable medical equipment providers, manufacturers, and others  in the homecare community that serve the medical needs of millions of Americans who require oxygen systems, wheelchairs, medical supplies, inhalation drug therapy, and other medical equipment and services in their homes. Members operate more than 3,000 homecare locations in al
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SOURCE American Association for Homecare
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