Bidding Fix Takes Major Step Forward After Bipartisan Vote

News

WASHINGTON (Feb. 26, 2015)—HR 284, the Medicare DMEPOS Competitive Bidding Improvement Act of 2015, was reported favorably out of the House Committee on Ways and Means on Feb. 26, 2015.

The markup of the Competitive Bidding Improvement Act in the House Ways and Means Committee is a critical step forward for this bipartisan legislation. CMS and CBO had indicated concerns with the legislation, which the committee worked to overcome. The chairman’s mark is slightly amended to reflect that binding bids would not be required for the current Round 2 Recompete. The bill gives CMS the authority to do it in the next round and requires it by 2019. 

 

Key Facts about the House Ways and Means Committee Markup of HR 284, the Medicare DMEPOS Competitive Bidding Improvement Act of 2015

  • HR 284, the Medicare DMEPOS Competitive Bidding Improvement Act of 2015 reported favorably out of the House Committee on Ways and Means.
  • AAHomecare is urging that the measure go to the floor as soon as possible. (Read more from AAHomecare.)
  • This markup of the Competitive Bidding Improvement Act in the House Ways and Means Committee is a critical step forward for this bipartisan, bicameral, budget-neutral legislation.
  • This legislation will make all bids binding and require proof of licensure for the next rounds of bidding. It addresses a major flaw in the program and deters speculative bidding without generating a cost.
  • There are three main provisions in the bill:
  1. Providers will need to prove licensure before they submit bids.
  2. Bidders would be required to obtain a bid bond.
  3. Bonds will be forfeited if the bidder declines the contract and his bid was at or below the bid price.
  • HR 284 has 54 cosponsors, including 11 members of the Ways and Means Committee. S 148 was an identical bill prior to Chairman Paul Ryan’s, R-Wisc., mark and has six cosponsors.
  • Efforts to pass the Medicare DMEPOS Competitive Bidding Improvement Act of 2015 are being led in the House by Reps. Tiberi, R-Ohio, and Larson, D-Conn. The Senate bill is sponsored by Sens. Portman, R-Ohio, and Cardin, D-Md. These bills are continuations of legislation originally brought forward in 2014.

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