government

Equipment bidding will save Medicare $28 billion, CMS says

NEWS IN BRIEF — Posted Aug. 29, 2011

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A second round of medical equipment competitive bidding is expected to save the Medicare program $28 billion over 10 years, the Centers for Medicare & Medicaid Services announced Aug. 19.

The program aims to increase competition between suppliers and control payment rates for medical equipment and supplies, such as walkers and power wheelchairs. CMS implemented bids for medical equipment in nine cities on Jan. 1. By July 1, 2013, new prices will be set for supplies in 91 metropolitan areas.

Bidding for round two was scheduled to begin in April, but CMS delayed the program as members of Congress and certain health care industry groups tried to end it altogether. Organizations representing medical suppliers have continued to lobby against the bidding process.

The program undermines quality of care and increases costs despite CMS' claims, said Tyler Wilson, president of the American Assn. for Homecare. "Because of this bidding program, beneficiaries will spend more time in expensive institutions, rather than in the far more cost-effective setting for care -- their own homes," he said.

Note: This item originally appeared at http://www.ama-assn.org/amednews/2011/08/29/gvbf0829.htm.

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