CMS Rewinds Round One as Bid Delay Takes Effect

WASHINGTON--In a victory of landmark proportions for the home medical equipment industry and the people it serves, the two-week-old DMEPOS competitive bidding project came to a screeching halt last week. But as of Friday, providers in round one were still confused about exactly how to proceed.

The Centers for Medicare and Medicaid Services program was suspended July 15 when the House of Representatives and the Senate voted to override President Bush’s veto of the Medicare package that includes a delay of the bidding program. It was the first legislative success for HME in at least 20 years, according to long-time industry stakeholders. (See HomeCare Monday Special Alert, July 15.)

“It’s unbelievable,” said Cara Bachenheimer, senior vice president of government relations for Elyria, Ohio-based Invacare, about the vote, which was decided in the House by a margin of 383 to 41 and in the Senate by 70 to 26.

The Medicare Improvements for Patients and Providers Act of 2008 (H.R. 6331) also eliminates the transfer of ownership of oxygen equipment called for under the Deficit Reduction Act of 2005, and carves out complex rehab from any future competitive bidding project.

To pay for all of this, providers across the nation will take a 9.5 percent reimbursement cut in the 10 product categories included in round one of bidding. The cut will become effective Jan. 1, 2009.

The law and its provisions are the result of an extraordinary effort by providers, manufacturers, industry organizations and even beneficiaries to educate legislators about the industry and the devastating effects of competitive bidding, stakeholders said.

“It’s a good outcome, and everybody’s efforts paid off. It was a good example of [how] if you pull everybody together, you can certainly have some influence in Washington,” said Don Clayback, vice president, government relations, for Lubbock, Texas-based The MED Group.

“The industry should be extremely proud of its ability to raise awareness and make such a significant policy change,” echoed Walt Gorski, vice president of government relations for the American Association for Homecare.

Legislators who had aligned themselves with the battle against competitive bidding also heralded the new law.