Bid Rates Today … or Tomorrow … or Wednesday

BALTIMORE — The HME industry was on edge waiting for CMS
to release Round 1 competitive bid rates on Friday,
but that didn’t happen. Now, insiders say, the rates are expected
at the latest by Wednesday.

A June 10 report from Inside Health Policy had said the
agency would announce
the single-payment amounts on June 25. “By hitting the June 25
date, CMS could claim savings for the program before lawmakers
leave for the July 4 recess,” the newsletter reported.

But Rob Brant, president of the Accredited Medical Equipment
Providers of America, heard differently in a Friday morning
conversation with the Competitive Bidding Implementation
Contractor.

“This morning, I spoke with a CBIC representative and she said
that they had no information about bid results or contracts being
offered today,” Brant said Friday. “The representative did say the
rates will be announced by the end of the month, at the latest this
upcoming Wednesday, June 30.”

Brant also said the CBIC had not yet sent emails about release
of the rates, and “Federal Express did not deliver notices this
morning offering contracts, disqualifications or bid results that
were too high.” Neither did congressional offices receive notices
from CMS about the rate announcement.

The CBIC representative told Brant an email would be sent with
updated information about the bid rates and contracts offered.
Based on a CMS bidding timeline, the Round 1 contract winners will
be announced in September. But that brings up another problem,
Brant said.

“If CMS is going to wait until the last day in September to
reveal those offered contracts, we are going to have some serious
problems,” Brant said. “Congress will break for the general
election on Oct. 8. That will only give the industry a few days to
evaluate the lowest bidders that hospitals, doctors and patients
will be relying on, and only a few days to make our case to
Congress.

“Are the lowest bidders local? Are they licensed? Are they
experienced? Can they still operate and provide service to patients
with the additional cuts?” Brant wants to know.

“Medicare will not answer those questions until it’s too late.
It’s a political game, and, again, where is the transparency?”

Michael Reinemer, vice president, communications and policy, for
the American Association for Homecare, said the association also
expects CMS to make the rate announcement today, tomorrow or
Wednesday. “That’s what we are hearing,” Reinemer said, adding,
“We’ve got to keep our eye on the ball.”

Beyond the timing of the rate announcement, he said, “The larger
point is to keep the issue alive and keep working on explaining the
consequences of the bidding program.”

When the rates do come out, AAHomecare said it expects “a flurry
of glowing press releases about the benefits of competitive bidding
coming from CMS … We expect that CMS will contact members of
Congress and the media to boast about the projected savings from
the bidding program.”

In response, AAHomecare, VGM and other HME stakeholders will
begin collecting signatures on a letter to congressional leaders
that underscores the groups’ concerns about competitive bidding and
their support for repeal of the program through H.R. 3790. The
pending bill, introduced by Rep. Kendrick Meek, D-Fla., now has 251
cosponsors.

Meantime, Waterloo, Iowa-based VGM said bidders should expect
the following in the coming days and weeks:

1. Announcement of “winning” bid rates (“single payment amounts”)
   sometime between June 28 and 30.

2. Potential contract providers will see an e-mail come through
   either shortly before or following the announcement notifying them
   to expect a package to arrive.

3. Bidding providers will see one of three types of letters from
   CMS approximately three to five days following the announcement.
   The letters will be as follows:

4. • a. Contract offer: Providers may receive a letter stating that
     they are being offered a contract. The letter will contain the
     terms of the contract and response instructions.
   • b. Qualified but no offer: Providers may receive a letter
     stating that they met all bidder eligibility requirements, but
     submitted a composite bid above the pivotal bid threshold.
     Providers will be advised that, should contracts be rejected by
     those offered, they may be offered a contract at a later date.
   • c. Did not qualify: Providers may receive a letter stating that
     they did not qualify to be offered a contract. This may mean one of
     several things, including but not limited to: failure to meet
     financial standards, lack of sufficient financial documentation,
     lapsed accreditation or surety bond, or lack of proper state
     licensure.

5. Providers who are offered contracts will be given between 10 and
   30 days to respond by either:

6. • a. Signing the contract and accepting/following proper
     procedure, or
   • b. Rejecting the contract.

7. In late July and August, CMS will evaluate the gaps in supply
   left by contract rejections and offer contracts to providers who
   received the second type of letter.

8. In September, CMS will announce the list of all contract
   providers.

9. Contracts will become effective Jan. 1, 2011.

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