WATERLOO, Iowa--In a press release issued Thursday, The VGM Group said it is continuing its attack "on so-called 'competitive' bidding" for home medical equipment and services.

According to the buying group, U.S. Census data indicate that 31 percent of the population in the first 10 MSAs that will be bid sites is Latino, while only 15 percent of the country's population as a whole is Latino. The percentage of individuals living below the poverty level in the initial competitive bidding areas ranges from 13 percent in Charlotte, N.C., to 32 percent in Cleveland. Across the 10 areas, the poverty level is 19 percent, while only 13 percent of the U.S. population lives below the poverty level.

"Minority and poor beneficiaries are being used as guinea pigs to test the government's theory that 'competitive bidding' for nine product categories will result in savings to Medicare," said Mike Mallaro, VGM's CFO/CIO. Mallaro is also president of Last Chance for Patient Choice, a non-profit advocacy group backed by VGM.

"Because CMS will take the lowest-priced equipment without taking into account the service component that is such a large component of the HME industry, Medicare beneficiaries will be the victims of a two-tier health care system. Those who can afford to pay for technologically advanced equipment and traditional levels of service, which naturally cost more, will be able to do so.

"In the meantime," Mallaro continued, "poor patients and many minorities will be forced to accept the cheapest equipment from the lowest bidder. Why are poor people and Latino-Americans being targeted disproportionately? That is absolutely un-American and in my opinion, unconscionable," he said.

VGM said it is sending sample press releases to all of its members in the first 10 MSAs in hopes they will inform local media about the congressional competitive bidding mandate and its implementation by CMS.

VGM and Last Chance are also supporting lawsuits in two jurisdictions, most likely Texas and Ohio, to raise the issue of equal protection under the law in court, said Jim Walsh, VGM general counsel.

"The theory is that beneficiaries in bid areas are being treated as second-class citizens by the law that requires them to be served by HME providers who are hamstrung in their efforts to provide quality and products. The law effectively rewards providers, by allowing them to stay in business, for furnishing the cheapest equipment and the least amount of service," Walsh said.

"Elsewhere in the country, providers are supposed to be paid usual and customary prices in a highly competitive environment that rewards good service and high-quality equipment. That is a denial of equal protection of the law to those unfortunate enough to live in bid areas."

To view the VGM member media release, visit www.vgm.com.

For more information on Last Chance for Patient Choice, visit www.lastchanceforpatients.org.