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Senate Finance Committee Addresses Problem-Plagued Medicare Bidding Program in SGR Bill
Date:12/13/2013

rties recognize that the Centers for Medicare & Medicaid Services has placed an unacceptable burden on the elderly and disabled by effectively limiting their access to doctor-prescribed medical equipment.

"The best chance we have of relieving the tremendous burden the badly mismanaged Medicare bidding program has put on patients is to develop fixes based on a real marketplace solution," said AAHomecare President Tom Ryan. "We'll continue to work closely with the House and Senate to make sure that happens."

As currently designed, the troubled bidding program has been dismissed by auction experts for choosing suppliers "based on their willingness to game the system rather than their cost competitiveness." Non-binding bids, median bids rather than clearing bids used to set prices, supplier capacity randomly assigned by the Department of Health & Human Services, and lack of transparency at every stage of the process contribute to the consensus that Medicare's program is "built to fail."

The American Association for Homecare represents providers of home medical or durable medical equipment and services who serve the needs of millions of Americans who require prescribed oxygen therapy, wheelchairs, enteral feeding, and other medical equipment, services, and supplies at home. Visit www.aahomecare.org.


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SOURCE American Association for Homecare
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