The OIG Grants Request for Investigation of Competitive Bidding Program

WASHINGTON  (Aug. 28, 2013) — The U.S. Department of Health and Human Services (HHS) Office of Inspector General (OIG) has informed U.S. Reps. Glenn `GT’ Thompson (R-PA) and Bruce Braley (D-IA) of its decision to begin an investigation of the CMS management of the Competitive Bidding program.

The investigation was prompted by a request made by Reps. Thompson and Braley on June 20, after reports surfaced that CMS awarded contracts in competitive bidding areas nationwide to suppliers that did not meet proper licensure and accreditation requirements, as set by the program guidelines and individual state laws.

Thompson states on his website, “Medicare’s reaction to admitted misconduct in the program has been lackluster. There was improper vetting of suppliers and the public deserves to know that measures will be taken to guarantee program failures will not continue,” said Thompson. “We have asked the Inspector General to look into the shortfalls, but also investigate the possibility that officials at Medicare intentionally ignored their own rules when problems began to arise,” he added.

The OIG will review CMS’ processes employed for its review of state licensing requirements, and to make pricing determinations for HME items and services under Round 2 of the program. Competitive bidding areas to be included in the OIG review at this point are Tennessee, Ohio, Michigan and Maryland, and a section of Pennsylvania.