WASHINGTON — With the government's response to the H1N1 flu outbreak in full swing, newly sworn in Health and Human Services Secretary Kathleen Sebelius can begin to focus attention on other matters. And not a moment too soon, HME observers say, as CMS is waiting in the wings on a restart of competitive bidding.

The former Kansas governor, confirmed in a 65-31 vote by the Senate on Tuesday, is charged with shepherding the Obama administration's ambitious effort for a complete health care system reform, which the president has said he wants completed this year. She will also play a pivotal role in determining the future of Medicare's DMEPOS competitive bidding program.

One of her first tasks, insiders say, will be to choose a new administrator for CMS, which has been rudderless since Kerry Weems left the agency's top spot in January. With no permanent leadership, CMS has plunged forward with its interim final rule on competitive bidding. Issued Jan. 16 — literally in the waning hours of the Bush presidency — the IFR, which calls for a rebid of Round One this year, took effect April 18.

Sebelius had indicated in Senate confirmation hearings that she would review the bidding program before a restart.

"Now that there is [an HHS secretary] to weigh in with, the industry continues to ask members of Congress to request that Secretary Sebelius do a full review and be fully briefed on the problems with the IFR before she makes a determination on how and when to move forward," said Seth Johnson, vice president of government affairs for Pride Mobility Products Corp., Exeter, Pa.


"We have also heard from others in Washington that CMS has indicated they were not planning to restart the bid process until after the [Program Advisory and Oversight Committee] has an opportunity to meet," he added, "so there are a couple of things in play that should take place prior to any restart of the program."

A meeting of the 17-member PAOC has been scheduled for June 4 (see related story this issue). Johnson said he expects a timeline for the Round One rebid could be presented at the meeting, along with any changes CMS may make within the current framework for the bidding program.

The industry is also hoping to take advantage of a surprise move last week by Pennsylvania Sen. Arlen Specter, who after 30 years as a Republican, changed party affiliation to the Democratic side of the aisle. That could help Democrats, now within one seat of a 60-vote, filibuster-proof majority, in moving any legislation.

The switch could also lend more weight to the industry's push to halt the IFR with Sebelius. In March, Specter wrote then-Acting HHS Secretary Charles Johnson calling for rescission of the bidding rule.

Specter will give the keynote speech at the American Association for Homecare's Washington Legislative Conference June 3, just one day before the PAOC meeting convenes.