Congress Eyes Competitive Bidding

Medicare's competitive bidding program for durable medical equipment, prosthetics, orthotics, and supplies (DMEPOS) will be questioned at a House Ways and Means health subcommittee hearing in the first full week of May, according to a report in Austin (Texas) American-Statesman. Medicare officials have touted the program as a major way to save money and reduce fraud in sale and rental of DMEPOS. According to Medicare officials, the first round of bids resulted in a roughly one-quarter drop in the price of equipment.

DMEPOS dealers have argued that the bid process is flawed and that it will put many longtime small dealers out of business because they will be shut out of the program.

"We have heard from both suppliers and beneficiary advocates that the DMEPOS competitive bidding program is not working as well as it is supposed to," California Representative Pete Stark, the panel's chairman, said in a statement. "I look forward to hearing their concerns, as well as from CMS [Centers for Medicare & Medicaid Services], as we consider whether changes need to be made before the program is further expanded."