Just over a month into the Medicare competitive bidding program, and patients, their advocates, economists, and just about anyone with a stake in the process has nothing good to say about it. The program, implemented by the government to cut Medicare costs and find the least expensive options for services (like DME), requires that a sealed bid, given to an issuer by an underwriter, come with a prospective price and terms for a contract. At the close date of bidding, the issuer picks the best offer. However, CMS has sharply restricted the numbers of suppliers which can take part in the competitive bidding process.
Patients are complaining that they are not receiving certain goods and services as prescribed by their providers. Poorer quality delivery of services by home care agencies, longer lengths of stays of beneficiaries in acute hospitals due to affected discharge planning, and fewer overall choices for patients for certain DME services — have all contributed to the angst surrounding this process. Critics do not seem to be blasting the process in a strict sense, but they’re concerned that the program’s design undermines transparency, subsists on inaccurate information supplied by Medicare, and increases the potential for fraud and abuse by third parties, as a result.
Overview of the Medicare competitive bidding program | LINK
American Association for Homecare concerns & resources for affected patients and other parties | LINK