Medicare equipment bidding rule delayed

Washington -- The Obama administration has postponed for 60 days the effective date of a Medicare rule that prepares for the 2010 return of a competitive bidding program for durable medical equipment.

The Centers for Medicare & Medicaid Services launched the bidding program July 1, 2008, in an attempt to lower DME costs, enhance quality and prevent fraud. Under the initiative, beneficiaries in selected areas who needed certain equipment were required to obtain it from suppliers chosen by the government through a bidding process. But the initiative was shelved after only about two weeks when lawmakers agreed to an 18-month moratorium.

In preparation for the restart of the program in January 2010, CMS published an interim final regulation Jan. 15 detailing several changes to the original program that were required by Congress. Revisions included stipulating that certain DME items, such as rehabilitative power wheelchairs, are excluded from competitive bidding.

The interim final regulation, which was to take effect Feb. 17, is on hold until April 18. The agency cited the need for further review of the revisions before moving forward.

In one of its first actions in January, the Obama White House sent out a memo asking federal agencies to consider extending for 60 days the effective date of any Bush administration regulations that had been published in the Federal Register but had not taken effect. The delay on the competitive bidding rule was urged by DME suppliers, who oppose the program, saying it could result in beneficiary access problems.

The American Assn. for Homecare, which represents suppliers, said in comments dated Feb. 12 that the roughly two weeks of operation of the competitive bidding program in 2008 "was fraught with delays, conflicting guidance and system failures." In addition, some physicians who supply selected types of equipment as a convenience to their patients expressed concerns they would never be able to compete effectively against major supply firms when it came to Medicare bids.

CMS is accepting comments on the reopened DME bidding program rule until March 23.