Survey finds problems with competitive bidding for diabetes supplies

A competitive bidding program for diabetes testing supplies is failing to provide Medicare beneficiaries access to specific types of supplies promised by Medicare, according to a recent survey by the American Association of Diabetes Educators.

The competitive bidding program for mail-order suppliers of diabetes testing equipment was established in January 2011 for mail-order services in nine U.S. markets. Soon after, widespread reports suggested that Medicare beneficiaries were unable to get the specific brands and types of equipment that had been promised on Medicare.gov.

The association surveyed contract suppliers in the nine markets via telephone in August 2011, and found that, on average, the suppliers offered only 38 percent of the products listed on Medicare.gov. Some offered products that were not listed on the website.

The survey showed that brands most commonly prescribed by physicians were often unavailable to beneficiaries. “Of the nine brands identified in a December 2010 report as the top mail order diabetes testing supply brands by percent of market share, contract suppliers offered an average of 1.44 brands (16%),’’ the association reported.

The association said that forcing beneficiaries to use unfamiliar testing systems increases confusion, noncompliance and risk of complications.

“Under the Competitive Bidding Program, contract suppliers have powerful incentives to maximize profit margins by purchasing and offering a limited range of products, and only the lowest cost products available,” Martha Rinker, chief advocacy officer for the association, said in a prepared release. “We believe this is a violation of the intent of the program. And, while offering limited supplies may achieve short-term Medicare program savings, the long-term reality is quite different for beneficiaries of the program and for the overall health care system.”