Health and Disability

Bipartisan legislation, introduced today by Representatives Tiberi (R-Ohio) and Larson (D-Conn.) and Senators Portman (R-Ohio) and Cardin (D-Md.) would help stop the speculative bidding that has marred the Medicare competitive bidding program for durable medical equipment, prosthetics, orthotics and supplies (DMEPOS). The American Association for Homecare (AAHomecare) applauds these leaders for their determination to put the patients first by bringing prudence to the flawed bidding process.

H.R. 284 and S. 148 would ban non-binding bids, one of the biggest problems with the bidding program. 244 economic experts from around the world, a group that includes Nobel Prize laureates, agree that the current Medicare bidding scheme is unsustainable, citing the lack of binding bids as a primary shortcoming of the program.

Officials from Centers for Medicare and Medicaid Services (CMS) have repeatedly said that CMS does not have the statutory authority to require binding bids, and that Congress must authorize CMS to require binding bids. With the next cycle of competitive bidding opening in less than two weeks, Congress must act now to protect Medicare beneficiary access to critical medical equipment.

Since CMS began implementing the bidding program in 2011, bidders have been allowed to submit suicide low-ball bids with no obligation to accept the contract at the price they bid at.