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Layoffs And Business Closures Caused By Medicare Bidding Program Will Harm Patients Says AAHomecare
Date:2/27/2013

ib.com/">National Federation of Independent Business have denounced the bidding program. "There are winners and losers, but winners are chosen based on their willingness to game the system rather than their cost competitiveness," says Dr. Brett Katzman, Interim Chair of the Department of Economics, Finance & Quantitative Analysis at Kennesaw State University. 

Moreover, this failed public policy is unfairly dismantling a network of providers dedicated to serving the most vulnerable people in our society. These homecare providers are being forced to lay off workers, close their businesses, or no longer service Medicare patients. In many cases, Medicare beneficiaries are baffled by a process that is replacing DME providers who have delivered outstanding service and products for decades with new suppliers who—because of the drastic cut in prices—can't provide the same level of service.

What's clear is that government bureaucrats did not comprehend the impact of their arbitrary price cuts. For instance, a serious health risk is developing in California.

Mark Hawkins owns Western Rehab, a provider of mobility equipment to clients in 15 counties in northern California. Due to the price cuts, he will no longer offer services and products to Medicare beneficiaries. He says many of his clientele are funded by both Medicare and Medi-Cal (Medicaid), but DME providers are not allowed to accept private funds for clients that are enrolled in the Medi-Cal program. "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," Hawkins says. "As there is no other sou
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SOURCE American Association for Homecare
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