AAHomecare Investigates Costs of Eliminating NCB

ARLINGTON, Va. — The American Association for Homecare reported last
week it has retained a Washington health care consulting firm to
develop several cost estimates for eliminating national competitive
bidding. In developing the estimates, the firm will mirror methods
used by the Congressional Budget Office, which works up the costs
of legislative proposals before Congress.

The association has asked the firm to perform four
estimates:

1. Cost estimate for eliminating competitive bidding: The
   firm will produce a 10-year, CBO-style estimate of the federal cost
   of completely eliminating competitive bidding for DME. The spending
   model will incorporate the estimated savings from the impact of the
   9.5 percent cut required by the Medicare Improvements for Patients
   and Providers Act of 2008 and the lack of CPI updates.
2. Cost estimate for excluding oxygen from competitive
   bidding: The firm will create a 10-year estimate for excluding
   oxygen equipment and services from the bidding program, using the
   same baseline for spending as the first estimate.
3. Cost estimate of restoring payments for complex rehab
   services: MIPPA excluded complex rehab from the bidding
   program but included it in the category affected by the 9.5 percent
   cut. The firm will estimate the 10-year cost of exempting complex
   rehab services from that cut and restoring prior payment
   levels.
4. Cost estimate for delaying competitive bidding for three to
   four years: This estimate will look at the cost of various
   scenarios to pay for a delay in competitive bidding.