government
Medicare DME bidding saved $202 million in 2011
Posted April 30, 2012
- WITH THIS STORY:
- » Related content
Competitive bidding for durable medical equipment in nine cities saved the Medicare program $202 million during its inaugural year, according to an April 17 report by the Centers for Medicare & Medicaid Services.
CMS achieved a 42% reduction in costs in the first year, but the program could provide larger returns in coming years. CMS projects that the agency and beneficiaries will save up to $42.8 billion over a decade once competitive bidding is implemented nationwide, the report said.
“Seniors, and people with disabilities on Medicare, are saving money thanks to our successful competitive bidding program,” said CMS acting Administrator Marilyn Tavenner. “By expanding this successful program, we will save tens of billions of dollars for beneficiaries and taxpayers over the next 10 years.”
In 2011, CMS began a new payment system involving bids in markets near Charlotte, N.C.; Cincinnati; Cleveland; Dallas; Kansas City, Mo.; Miami; Orlando, Fla.; Pittsburgh; and Riverside, Calif. More than 1,200 contracts were awarded to 356 suppliers for products that included oxygen equipment, standard power wheelchairs, diabetic supplies, hospital beds and walkers.
CMS is expanding the program to 91 metropolitan areas despite fierce opposition from some federal lawmakers and the equipment provider industry. The second phase of the program is set to begin by 2016.
Note: This item originally appeared at http://www.ama-assn.org/amednews/2012/04/30/gvbf0430.htm.
