Bill on DME Bidding Delay Faces Bipartisan Opposition and Uncertain Senate Vote

House-approved bill HR 6331, the Medicare Improvements for Patients and Providers Act of 2008, which would include a measure to delay for 18 months the implementation of the Medicare DMEPOS bidding program, has failed to receive a vote that would pass it into an accelerated-voting process, and now faces opposition from a bipartisan group of Senators.

On June 26, two days after the House of Representatives voted to pass HR 6331, the Senate voted down a cloture motion on the bill. A cloture motion prohibits filibustering of abill and shows that Congress is ready to vote without further debate. According to Congressional Quarterly, this indicates that passage of the bill will be delayed and that it is less likely to pass.

The American Association for Homecare (AAH) filed a federal lawsuit on June 9 seeking to block the bidding program's implementation, and more than 30 senators have signed letters opposing the program. However, on July 2 CQ Healthbeat reported that five senators signed an opposing letter, urging Senate Majority Leader Harry Reid (D-NV) and Minority Leader Mitch McConnell (R-KY) to oppose HR 6331. The report quoted the letter as stating that problems with the bidding program "can be addressed without legislatively delaying" its implementation, which was scheduled for July 1. The letter was signed by Sens. Tom Coburn (R-OK), Larry Craig (R-ID), Dianne Feinstein (D-CA), John Kerry (D-MS), and John Rockefeller (D-WV). CQ Healthbeat noted that the letter stressed overall benefits of the bidding program, including a projected $1 billion annual cost savings. The letter says competitive bidding "ensures that beneficiaries receive their [durable medical equipment] from accredited and financially viable suppliers, two important safeguards that beneficiaries did not have prior to competitive bidding."

In 2008, the program is still scheduled to begin in ten major Metropolitan Statistical Areas (MSAs) and would apply to ten of the top DMEPOS product categories. Beginning in 2009, the program would expand rapidly to other MSAs nationwide.