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Medicare Beneficiaries At Risk Says AAHomecare
Date:2/15/2013

re too high are bad because they cause over-use and large Medicare expenditures, prices that are too low are even more dangerous. Dramatically lower prices might give something about which CMS can brag, but any introductory economics student can tell you that a price below the "right" level will cause shortages. Then again, I guess that shortages of life-saving equipment will lead to fewer seniors on the Medicare rolls—something that will reduce expenditures further and give CMS something more to brag about.

What Dr. Katzman describes is being played out in actual communities from coast to coast.  The procurement system is broken; communities are experiencing the impact of suicide bids and arbitrary prices. Good businesses are being forced to close. Worst yet, this malfunctioning system is awarding contracts to serve the most vulnerable people in our society—the elderly and people living with disabilities. Are lawmakers confident that their constituents are receiving quality service and products?

Reports pour in from around the country. Providers of CPAP ventilators have won bids in the oxygen categories, but they have never before provided portable oxygen systems. A four-employee provider wins oxygen bids in two locations. A small, single store provider has been offered hundreds of contracts in dozens of locations. And a 30-year veteran provider who made aggressive bids wins no contracts.

"It's hard to believe Congress and the White House are allowing this to happen," said Joel D. Marx , Chairman of Medical Service Company in Cleveland, Ohio, and Chairman of the American Association for Homecare. "Business owners who have served Medicare patients for years have either not won any bids, won bids they can't possibly execute at such low prices, or are turning down the contracts being offered by CMS. The bureaucrats are out of con
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SOURCE American Association for Homecare
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