WASHINGTON--Joining the growing numbers of those voicing major reservations about DMEPOS competitive bidding, over the last 10 days, three senators and four representatives have called on CMS to postpone further implementation of the program.
In an April 1 letter to Michael Leavitt, secretary of the U.S. Department of Health and Human Services, which oversees CMS, Sen. Sherrod Brown, D-Ohio, called competitive bidding “seriously flawed” and said it would undermine beneficiary access and care.
In bullet-item format, he noted numerous problems with the program and urged HHS to “act quickly to fix the problems … and avert the serious ramifications--both for Medicare beneficiaries and suppliers--that will surely result should implementation continue unfettered.”
On April 2, Sens. Arlen Specter, R-Pa., and Robert Casey, D-Pa., sent a letter to Leavitt asking him to extend the winning bidder contract review period (which ended April 3) and to delay implementation of round one.
“The delays we request are clearly warranted by the very serious potential errors made by CMS and the CBIC in this process,” the senators wrote. “If a large number of bidders have been disqualified in error, it is entirely likely that their re-inclusion may substantially impact the bid outcomes. Thus, it is imperative the current schedule be delayed so that all necessary corrections can be implemented.”
On March 28, Rep. Ric Keller, R-Fla., sent a letter to acting CMS Administrator Kerry Weems telling the CMS head he had discussed the issue of bid disqualifications with several providers.
“The business owners I met with indicated that 40 percent to 70 percent of their business is generated from Medicare beneficiaries. Their ineligibility to participate in the DMEPOS program will negatively affect their businesses as a result of clerical errors made by CMS. It will also cause beneficiaries to lose the quality service they have come to expect from these providers as well as their choice when seeking out medical equipment,” Keller wrote.
Three other Republican representatives from Florida--Lincoln Diaz-Balart, Mario Diaz-Blart and Ileana Ros-Lehtinen--sent a similar letter to Weems on April 3.
The members of Congress are the latest in a widening spectrum of those opposing the project, which is set to take effect July 1. But theirs weren't the only letters posted last week.
Earlier last month, Rep. Jason Altmire, R-Pa., spearheaded a letter to Weems from 120 House members asking CMS to “provide detailed answers” to a number of questions about round one of bidding and expressing concern about round two because “CMS is expanding the program before the first phase has started and the impact on beneficiaries' access to DMEPOS can be evaluated.”
The House letter recommended that CMS create additional measures to ensure “the healthy participation of small businesses” in both rounds.
In a response received last week, Weems wrote Altmire that CMS had initiated “a number of policies to ensure the active participation by small suppliers,” including:
--Working with the Small Business Administration to establish a
new definition for small suppliers reflective of the DMEPOS
industry;
--Not requiring suppliers to submit bids for all product categories
because it may be difficult for small suppliers to furnish all of
the product categories in the competitive bidding program;
--Setting a 30 percent target for contract awards to small
suppliers for each product category; and
--Permitting small suppliers to form networks if they cannot
service an entire competitive bid area.
“In addition to the regulatory provisions, we provided extensive education and support to all suppliers including small suppliers, during the bidding process,” Weems said in his letter, adding that CMS had more than doubled its target goal with small suppliers making up “a significant number (64 percent) of the suppliers being offered contracts under round one of the program.”
Regarding the timeline for round two, Weems wrote: “As we proceed with each stage of round two, we are taking into account our experience from round one, as well as the successful demonstration projects conducted several years ago. For example, we announced the metropolitan statistical areas and product categories that will be phased in under round two of the program earlier this year so that suppliers in those areas would have time to meet quality standards and become accredited. We are also upgrading the online supplier bidding system.”
Said Weems, “I assure you that I will continue to take steps to work with suppliers to ensure that Medicare beneficiaries have access to quality DMEPOS items and services at reasonable prices.”