Allcare Medical to Testify at House Bid Hearing

WASHINGTON — HME provider Allcare Medical, Old Bridge,
N.J., is on the roster to testify at Wednesday’s House hearing on
Medicare’s DMEPOS competitive bidding program.

“This hearing will examine the conception and implementation of
the competitive bidding
program, the implementation of the Round One Re-Bid and its
potential effects on patients, providers and physicians,” according
to a hearing notice.

Formally titled “Medicare’s Competitive Bidding Program for
Durable Medical Equipment: Implications for Quality, Cost and
Access,” the Sept. 15 hearing has been scheduled by the Health
Subcommittee of the House Energy and Commerce Committee.

Rep. Frank Pallone, D-N.J., Health Subcommittee chairman, asked
Allcare to testify, representing both the American Association for
Homecare and the Jersey Association of Medical Equipment
Services.

That’s a beginning, insiders said Friday, but the industry will
be up against some heavy government hitters. While the full list of
witnesses at the hearing has not been released, a panel of
government witnesses including officials from CMS is expected to
defend the bidding program.

“I do think there are many members of Congress who truly want to
understand how the bid program is going and how it will impact
their constituents. The problem we have, though, is timing,” said
Cara Bachenheimer, senior vice president of government relations
for Invacare, referring to the fact that CMS has not yet revealed
the names of Round 1 bid winners.

The agency has said it plans to release the list sometime this
month, although some stakeholders believe that date could slip.
With such a late time frame, advocates point out, the industry will
have only a short time to respond before Congress adjourns for the
November elections. What’s more, that list will reveal only those
bidders who have accepted contracts, not those whose bids were used
to formulate the single payment amounts.

“This hearing is not timed to provide anyone with a good picture
of what will happen,” Bachenheimer said. “Until we know who the
actual contractors are, we don’t have any data to tell our story.
CMS will have the upper hand because they can say they are saving
32 percent, etc.

“CMS has quick and easy sound bites, when the entire story is
far more complicated and hasn’t fully unfolded yet.”

Meanwhile, HME advocates supporting H.R. 3790, which would
repeal the program, are making plans to pack the hearing room. The
bill currently has 255 representatives signed on.

According to a Friday update from NCAMES, dozens of North
Carolina HME owners from Charlotte (one of the nine MSAs included
in Round 1 of the bid), Winston-Salem, Greensboro and Raleigh will
be traveling to Washington to attend the hearing as well as an
economic summit hosted by members of the state’s congressional
delegation.

The American Association for Homecare is also encouraging
providers and patients to attend the hearing in person and to
continue talking to members of Congress about the bidding program’s
flaws. The association’s Friday newsletter asked HME stakeholders
“to let committee members know about the effects competitive
bidding will have on your patients and your business.”

The association has added several new tools (available at
www.aahomecare.org) to help
explain the negative results the bid program will have, including
talking points and an issue brief from a study focused on the
patient
impact of the bidding program. Produced by actuarial firm
Dobson DaVanzo & Assoc., the study warns that the program may
mean in fewer choices, reduced access to care and lower quality
products for Medicare beneficiaries.

The hearing will begin at 10 a.m. in Room 2123 of the Rayburn
House Office Building. AAHomecare said it will provide online
and/or C-SPAN viewing information if it becomes available.

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