Proposal Attempts to Head Off Texas Bid for Incontinence Supplies

AUSTIN, Texas — With Texas’ Health and Human Services
Commission (HHSC) and the Texas Comptroller of Public Accounts
(TCPA) moving ahead on a proposed rule to allow competitive bidding
for Medicaid incontinence supplies, the Medical Equipment Suppliers
Association (MESA) has submitted an alternate proposal.

“The TCPA alleges that it’s open to alternatives, and we’ve
given the agency a comprehensive proposal that includes licensure,
mandatory accreditation, surety bonds, criminal background checks,
and a lower maximum allowable for diapers, briefs and underpads;
the MESA proposal meets all of the goals stated as being the
impetus for the initiative,” MESA Executive Director Liz Moran said
in a release.

In September, the Medical Care Advisory Committee (MCAC) voted
not to recommend approval of the rule for publication. But the HHSC
and the TCPA contend that by using competitive bidding for
incontinence supplies, the state could reduce opportunities for
fraud and abuse and leverage buying power, with savings totaling up
to $15.2 million a year.

According to the TCPA, more than 3,000 DMEPOS providers are
enrolled in Texas Medicaid, and about 1,440 provided incontinence
supplies to beneficiaries in 2009.

“The TCPA has point-blank said that they want to reduce the
number of providers, combat fraud and save money,” Moran said.
“Instead of looking for easy outs and consulting out-of-state
companies notorious for trying to obtain single-source contracts,
the TCPA and the HHSC need to improve their own performances and
accept responsibility for a system that’s long needed updating.

“Somewhere along the way,” she continued, “they lost sight of
the fact that the DME businesses in the state contribute to the
economy, keep people gainfully employed and serve their Medicaid
clients very well. The agencies also fail to understand that health
care should never be an auction item. They’re not dealing with pens
and paper clips here.”

Moran added that the implementation of such a procurement
program “will send the vast majority of incontinence reimbursements
to a different state.”

Items that would be included in the procurement initiative
include diapers, underpads, ostomy supplies and catheters. The
United Ostomy Associations of America has endorsed the MESA
plan.

A third stakeholder conference on the proposed program is
scheduled for Jan. 27, 2011.