Bradenton, Fla.

Before introducing competitive bidding into Florida's Medicaid program, the state's Agency for Health Care Administration must prove to federal officials that the program would not compromise patients' choice, an administrative law judge ruled Oct. 18. The decision marked a partial victory for the plaintiff, the Florida Association of Medical Equipment Suppliers.

FAMES filed the lawsuit in March — after AHCA issued an unexpected request for competitive bidding proposals — charging AHCA with violating a U.S. law that requires state agencies to obtain a federal waiver before implementing any program that could compromise patients' choice. The association also alleged that AHCA had violated the procedure for establishing rules when AHCA changed the qualification requirements for oxygen patients without allowing sufficient time for public comment.

Although the judge has not yet ruled on the later of the two charges, he agreed with FAMES that AHCA needed federal permission to implement competitive bidding, said Joan Cross, co-owner and vice president of C&C Homecare in Bradenton, and president of FAMES. The ruling will force AHCA to make its case to the Baltimore-based Centers for Medicare and Medicaid Services, she explained.

“I really think [CMS] will take a hard look at AHCA's waiver request,” Cross said, “but I think they'll approve it.”

Another favorable ruling in this case could stall AHCA's competitive bidding plan indefinitely, Cross continued.

“If the judge requires them to go through the rule-making process, they will have to have public meetings and comment periods,” she said. However, “even with a win, there still are things we have to do to fight competitive bidding. Governor Jeb Bush is committed to pushing competitive bidding through and will remain committed to that statement despite this ruling.”

Continuing the battle, a group of Miami-based home medical equipment providers planned a Nov. 4 demonstration outside the Florida offices of Sen. Bob Graham, D-Fla. The chief proponent of competitive bidding in the Senate, Graham and his fellow Finance Committee member, Phil Gramm, R-Texas, introduced a stand-alone competitive bidding bill in October.

For breaking news, go to www.homecaremonday.com, the electronic news service of the home medical equipment industry.