BALTIMORE — March 17 is more than St. Patrick's Day this year. It's the last day for commenting on CMS' competitive bidding IFR, and the date of a special Open Door Forum on the surety bond requirement for DMEPOS providers.

On Jan. 16, CMS published an interim final rule that revives the Medicare competitive bidding program. The rule was scheduled to take effect Feb. 17, but the agency delayed its effective date until April 18 to give the Obama administration time for review. The original comment period for the rule — March 17 — remains unchanged.

While the date delay gives the HME sector a temporary reprieve, said AAHomecare President Tyler Wilson, "everything about CMS' handling of the competitive bidding program from the very outset has been troubling.

"Starting with the mismanaged implementation in 2008, through the mischaracterization of the program as a fraud prevention effort, to the rush earlier this year on Jan. 16 to ramrod the program through under the cover of the previous administration on its very last day, CMS seems intent on being confrontational with the HME community. Now, with some respite in the process, I hope that CMS will circle back and conclude they should work with home care providers through the [Program Advisory and Oversight Committee] and other means to make sure the reimplementation is free of flaws.

"Or better yet," Wilson continued, "CMS should work with the HME community to convince Congress that the bidding program will harm beneficiaries and providers alike and should be scrapped."


The industry got a boost from Rep. Heath Shuler, D-N.C., who called for an end to DMEPOS bidding last month during a House Small Business subcommittee hearing. But CMS' Laurence Wilson, who testified at the hearing, told committee members the Medicare Improvements for Patients and Providers Act — the law Congress passed to delay the program — also requires its relaunch in 2009. CMS intends to move forward with a rebid of Round One this year, he said.

Eliminating competitive bidding before it can be implemented again is a top industry priority because of "the clear harms it would inflict on patient access to care, quality of care, and on the nation's home care infrastructure," AAHomecare said in a Friday update. To gain momentum and unify messages, the association said it has outlined key government relations, grassroots and PR actions needed to stop the program.

Working with state associations, AAHomecare's "roadmap" for ending competitive bidding includes outreach to consumer organizations for support, education of new members of Congress and the Obama administration, a media campaign and development of grassroots action at the state and individual provider level.

"Providers should ask their members of Congress 'Do you support a selective contracting program that puts most of the bidders out of business, even if they agree to a lower price?'" Wilson suggested. "This anti-competitive bidding scheme is simply a government-mandated consolidation program that will systematically kill competition and reduce access and care for the growing number of Americans who need medical equipment, care and supplies at home."

The association has unveiled a new Web page on competitive bidding issues.


To submit electronic comments on the competitive bidding IFR, go to www.regulations.gov. Enter file code CMS-1561-IFC and click on "Go." The left-hand column of the next screen is headed "Narrow Results." Under "Document Type," click on "Rules," and that will take you to the actual rule. Click on "Send a Comment or Submission." Fill in the information required under "Submitter Information" and your comments. In your comments, refer to file code CMS-1561-IFC.

For additional information, see www.cms.hhs.gov/DMEPOSCompetitiveBid.

View the rule in the Federal Register as a PDF.

CMS has also set March 17 as the date for a Special Open Door Forum detailing the surety bond requirement. The teleconference will be held from 2-3:30 pm ET.

On Dec. 29, the agency announced it would require providers to post a $50,000 surety bond and published a final rule on the requirement Jan. 2. Existing providers must comply by Oct. 2, 2009, while newly enrolling suppliers must have a bond in place by May 4, 2009.


According to the Open Door notice, CMS staff will discuss key provisions of the final rule, including exemptions to the surety bond requirement; implementation dates; the definition of a final adverse action; and elevated surety bond amounts. The session will also include a Q&A.

To participate by phone, call 800/837-1935 and reference Conference 88857015.