Hobson, Tanner Introduce Bill To Modify Competitive Bidding

Washington

Just before Congress broke for its summer recess, Reps. David Hobson, R-Ohio, and John Tanner, D-Tenn., introduced a bill that many stakeholders say would help level the playing field when DME competitive bidding for Medicare takes effect.

One of the main goals of the legislation — which would make changes to the competitive bidding provision in the Medicare Modernization Act — is to ensure beneficiaries’ access to DME and protect small providers, its co-sponsors said.

The MMA requires DME competitive bidding to begin in 10 metropolitan statistical areas in 2007, then expand to 80 MSAs in 2009.

“Our goal is to make sure that seniors who depend on quality durable medical equipment can continue to have access to it through Medicare,” said Hobson, who has been one of Congress’ top HME industry supporters. “Part of making that happen is to ensure that small suppliers can continue to compete in Medicare’s bidding process, which is what we are doing with our bill.”

Reaction from the industry has been upbeat.

“Since we can’t make competitive bidding go away, this is the next best thing we could have asked for,” said Karyn Estrella, executive director of the New England Medical Equipment Dealers Association and chair of the American Association for Homecare State Leaders Council.

“We’ve heard from some providers who have come to the conclusion that if they lost a bid in a major product category, their company would go out of business. It has put everybody in a sense of panic. We need something that is going to protect the small provider — and this legislation will really do that.”

AAHomecare, state associations and other industry leaders have been urging providers to enlist congressional co-sponsors for the bill.

“As a small businessman, I know that the small business provisions of this bill are critical to thousands of home care providers and the patients they serve,” said Tom Ryan, AAHomecare chair and president and CEO of Homecare Concepts, Farmingdale, N.Y. “We will be working very hard in the months ahead to build a ground-swell of support for this vital legislation.”

“This is the exciting first step to get some real and positive changes to competitive bidding,” said Cara Bachenheimer, vice president of government relations for Elyria, Ohio-based Invacare Corp. “The industry now needs to mobilize across the country, asking each and every representative to sign on as a co-sponsor.”

TO TAKE ACTION:

Find your members of Congress at www.us.gov/Contact/Elected.shtml.