WASHINGTON--The American Association for Homecare reported last week that Ohio HME providers could face "selective contracting" under a new Medicaid rule proposed by the Ohio Department of Job and Family Services.

The rule creates a bidding program that would selectively contract HME items and services provided to the state's Medicaid beneficiaries. According to the association, the rule is a response to recommendations made by the Ohio Commission to Reform Medicaid regarding negotiation of provider contracts for durable medical equipment and supplies.

Quoted in the association's newsletter, Kam Yuricich, executive director of the Ohio Association for Medical Equipment Services, called the announcement "discouraging on many levels. First of all, the rule is so vague that by its very simplicity it is unacceptable. It's wide open. Also, Ohio Medicaid has moved aggressively into managed care over the past two years with almost 1.2 million consumers enrolled at a savings of approximately $127 million to the state program."

Yuricich said members of Ohio's congressional delegation have been "vocal opponents" of Medicare competitive bidding. Rep. David Hobson, R-Ohio, is a co-author of H.R. 1845, which would amend the competitive bidding program to allow all qualified providers to participate in Medicare at the bid rate. But now, Yuricich said, they find their "own state Medicaid program moving in that direction."