Headline News

TAHCS' Johnson: Welcome to H.R. 3790


DALLAS — Just a few weeks after being introduced, the bill
that would eliminate DMEPOS
competitive bidding
is gaining traction among legislators.

As of Friday, H.R.
, introduced on Oct. 13 by Rep. Kendrick Meek, D-Fla., had
garnered 53 cosponsors.

"This places us over halfway to our goal of 100 cosponsors
within only three weeks," said Barry Johnson, president of the
Texas Alliance for Home Care Services and one of the bill's
originators. "We expect more congressional support as members fully
understand the tremendous cost savings of our budget-neutral

The goal, Johnson said, is to see the bill "signed and enacted
on Jan. 1" — or the first business day after Jan. 1. "In the
words of Larry the Cable Guy," he said, "we need to get 'er

With the Meek bill, providers are finally armed to fight the
battle against competitive bidding, according to Johnson, who
stressed that more providers are needed on the front lines. "We
need more providers to step up to the plate and tell the story," he
said. "It's an education process."

He knows it's tough for providers who have never been
politically active before. Johnson said when he visits a
legislator's office, "I say, 'I'm not here to bother you; I'm here
to tell you something that is going to make everyone's life

A respiratory therapist for 40 years, Johnson is a salesman when
it comes to the Meek bill because he believes it gives CMS just
what it wants and protects patients and providers at the same time.
"The point of competitive bidding was to reduce the number of
providers out there. Competition reduction. Well, OK," said
Johnson. "Reduce fraud and abuse — absolutely. Get more for
your money. I'm a taxpayer and I'm all for that.

"But what if I could do all that stuff better, faster, quicker
and give you back $25 million? Would you go for that? Well, welcome
to H.R. 3790."

Johnson ticked off the bill's selling points:

  • Significant savings. "First off, we have a bill
    with a number on it. It's pretty tough to see the light when no one
    turns the light bulb on," Johnson said. Up to this point, industry
    representatives could only provide legislators with information and
    particulars about the devastating problems competitive bidding
    would create for small business providers and Medicare
    beneficiaries, he said.

    "But how can they really properly evaluate what you are telling
    them? Now they have the legislation and they can see the
    legislation," Johnson said. "We have had it scored by an
    independent actuary, and it's coming in about 10 percent [savings
    for Medicare]. We've had a 9.5 percent cut already. That's 19.5
    percent, a half percent greater than the [savings from the] first
    round of demonstrations in Polk County, Fla."

    Combined with the 25 percent savings on oxygen from the 36-month
    oxygen cap implemented in January, Medicare is already seeing a
    substantial savings that is far beyond the average 26 percent
    savings on DMEPOS items in the aborted Round 1 of competitive
    bidding last year.

    "We're rolling back the prices to 1998. We're better than
    Walmart," Johnson said.

  • Access to care. The Meek bill would preserve
    patients' access to care because it would not eliminate thousands
    of providers, Johnson pointed out. "When you're reducing the number
    of providers by 90 percent, you are asking 10 percent of the
    providers to take care of 100 percent of the population. That's a
    tough deal," he said.

    His own Dallas County is 9,000 square miles and, under
    competitive bidding, would have only about 40 providers, he
    estimates. "It's going to be difficult to get from one corner to
    another in a timely manner … Now we have a patient risk issue
    here because we are limiting access to care."

    Medicare is very likely to see more trips to the emergency room
    and more hospitalizations because there will be too few providers
    to attend to them quickly, a problem that would worsen dramatically
    in cases of thunderstorms, hurricanes, snow and heavy winds,
    Johnson said.

  • Elimination of the Competitive Bidding Implementation
    "The CBIC can go away, and the cost of the
    CBIC is $25 million annually," Johnson said. "We truly have a
    bipartisan bill which will achieve the same results as competitive
    bidding while returning $25 million to the taxpayer annually. These
    administrative funds are simply being wasted to administer the
    severely flawed competitive bidding program."

  • Curb fraud and abuse. "We want to start a
    fraud-and-abuse program that works with the $25 million," Johnson
    said. Because of mandatory accreditation, surety bonds, onsite
    visits, stiffer standards and post-payment audits, inroads are
    already being made into the fraud-and-abuse arena, he said.

    "There was a reduction of providers, on average, of about 40
    percent," he said. "We think what has happened is that those people
    who were less than responsible, those people have dropped out.