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Defective Medicare Bidding Program For Medical Equipment Forces Severe Hardships On California Business Owners And Beneficiaries
Date:4/2/2013

It will have an extremely detrimental effect on beneficiary access to homecare products, as there are limited (or no) companies that service these rural counties. Our employees are aware of probable employment termination as our workload shifts away from Medicare-funded services."

He said that many of his clientele are funded by both Medicare and Medi-Cal (Medicaid), a complication that will further restrict access to home medical equipment.

"We are unable by law to accept private funds for clients that are enrolled in the Medi-Cal program," Hawkins said. "Because we are now not accepting Medicare reimbursement, the beneficiaries are unable to legally purchase the prescribed DME privately due to their enrollment in the Medi-Cal program. As there is no other source of funding, these beneficiaries will have no resource for the prescribed equipment that is needed."

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Near San Diego, Ashley Medical, Inc., a woman owned business that started in 1989, will be forced to close because of the bidding program.

Carol Ashley , CEO of Ashley Medical, Inc, said her company submitted fair and reasonable bids, but didn't win any contracts. But after seeing the prices set by set by CMS, she said, "If offered a contract, we would have to decline, as the rates are acquisition prices leaving nothing with which to pay our employees, service and deliver the equipment, and provide outstanding customer service to our patients."

Ashley maintained that "CMS appears to be applying bullying tactics on a defenseless DME Industry and the end result will impact the beneficiaries in addition to small businesses."

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Leslie Forbes , ATP, Owner of A-1 Home Healthcare, Inc. has been servicing the Los Angeles, Ventura, and Santa Barbara areas since 1981, but now doubts if she ca
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SOURCE American Association for Homecare
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