CMS Fields Competitive Bidding Survey

BALTIMORE — CMS is conducting a supplier survey to satisfy
a requirement of the Medicare Modernization Act that mandates an
evaluation of the DMEPOS
competitive bidding program.

Administered by CMS contractor Abt Associates and endorsed by
the American Association for Respiratory Care, the survey is one of
two currently underway. The second, CMS said, is a beneficiary
survey.

“Basically, it’s about make and model, more detail than we get
on a claim,” a research analyst at CMS’ Office of Research,
Development and Information said of the supplier survey.

The survey includes providers located both inside and outside
the first 10 competitive bidding areas so the agency “can do
stronger types of comparisons about isolating [the] impacts of
competitive bidding,” the analyst said, adding that not all 10 CBAs
are being surveyed since that was “prohibitively expensive.”

While the CMS analyst could not reveal further details about the
survey, some industry observers suggest the agency is worried
providers will offer lower-quality products to beneficiaries under
competitive bidding. The survey will allow CMS to compare the
results about equipment with a quarterly report required of
suppliers within a CBA that includes make, model and part numbers
for all products supplied to Medicare beneficiaries.

According to a letter accompanying the survey sent to an oxygen
provider, CMS is randomly selecting 1,000 suppliers to receive the
survey and will pay $75 for its completion, an industry source
said.

AARC Director of Government Affairs Cheryl West said the
association was approached by CMS staff–first in 2006, though the
survey never went forward, then again this spring–asking for its
support to encourage survey responses.

“With input from the leadership of the home care section, AARC
decided that it was important that CMS gather this data,” West
said. “Therefore, with the caveat, which I personally made very
clear to CMS staff, that as long as they did not infer in any way
that we endorsed the competitive bid program, they could use our
name to encourage people to complete the survey.”

In May of 2006, CMS explained in a Paperwork Reduction Act
document that it would fulfill the MMA’s competitive bidding
evaluation requirement with beneficiary and supplier surveys, focus
groups involving suppliers and referral agents, and discussions
with beneficiary groups, CMS officials and others.

In an article posted on its Web site, Waterloo, Iowa-based VGM
Group said at least one medical equipment supplier association has
been contacted by Abt. According to the posting, a written contact
to the association president stated: “You are being asked [to]
participate in a 45-minute interview about your perspective and
experiences from (the association’s) standpoint. We would be
willing to come to your place of business. The interview will not
be audio or video taped. The discussion will be confidential.”

VGM said the notice continued: “Data collection will take place
before competitive bidding begins and again one year after it is
implemented. The aim of the interviews is to learn about the
experiences and perspectives of durable medical equipment
suppliers, health care professionals who order durable medical
equipment for their Medicare patients, Medicare beneficiary
advocates, and CMS/CBIC officials. The interviews will help CMS
understand the affect of the program on suppliers, referral
providers and Medicare beneficiaries.”

Kelly Wolf, VGM vice president, key accounts, said the group is
not overly concerned about the data being collected.

“At VGM we feel, though the surveys suggest future monitoring,
the data collected will in no way impact our members’ ability to
choose which products they offer their customers. As the final rule
states, providers must provide Medicare recipients the same
products that are provided to other customers. As long as providers
utilize the same products for all of their customers they retain
their ability to change products as needed.”

Abt Associates, Cambridge, Mass., is the contractor that
developed the first draft of CMS’ new supplier quality
standards.