Text released on H.R. 27 bidding repeal bill

CUMMING, Ga., Jan. 10, 2013—According to the Accredited Medical Equipment Providers of America (AMEPA), the text for H.R.27, the first repeal bill in this 113th congress, has been released and it is a straight repeal bill without any replacement alternatives or “pay fors.” The bill is called the “Small Supplier Fairness in Bidding Competition Act of 2013.” It was introduced by Congresswoman Nydia Velazquez (D-N.Y.) who has served as the ranking member of the House Small Business Committee.

Velazquez occupies New York’s newly redrawn 7th district, which includes parts of Brooklyn, Queens and the Lower East Side of Manhattan. Her district is affected in both the Bronx-Manhattan Metro and Nassau-Brooklyn-Queens-Richmond Metro bidding areas. Many will remember Velazquez as the leader of the House Small Business Subcommittee hearing in May 2008, which questioned Medicare Policy Director Laurence Wilson on why unlicensed and out of area suppliers were awarded contracts. That hearing led to Congress repealing the original Round 1 in July 2008.

H.R. 27 is a one-page bill which simply states that “In General-Section 1847 of the Social Security Act (42 U.S.C. 1395w-3) is repealed.” The bill also mentions that “In the case of any contract awarded under section 1847 of the Social Security Act before the date of the repeal of such section, the contract is terminated.”

But providers in Round 1 should not get too excited, as it is doubtful that the bill will gain momentum. So far H.R. 27 does not have any cosponsors, and with Medicare touting a program savings over $40 billion over 10 years Washington insiders predict that the majority of legislators will not support it. However, providers with relationships with their U.S. Representatives informed AMEPA that they have already received inquiries about H.R. 27. On face value the bill will send a message to legislators on the Senate and House health care committees that Medicare’s flawed bidding program needs to be addressed.

Click here to read the text of HR27. Click here to view video of Velazquez questioning Medicare’s Wilson at her committee hearing. Also visit www.amepa.us.