Home Health & Hospice Week

Industry Note:

DME Bidding Doesn't Harm Benes, CMS Maintains

Durable medical equipment suppliers may see more competitive bidding in their future. Based on a Government Accountability Office analysis of DME manufacturer competitive bidding, House Ways and Means Health Subcommittee Ranking Member Pete Stark (D-Calif.) is urging CMS to consider testing the program.

"I requested this report because it's always seemed to me that we could get a better deal by going right to manufacturers, just like the federal government does today when they buy vehicles," Stark says in a release. "This GAO report shows that additional savings may be possible, while still ensuring quality and access to care."

CMS would have to consider setting up a separate payment system to reimburse DME suppliers for their services instead of equipment under the system, the GAO notes in its report at www.gao.gov/new.items/d11337r.pdf.

Meanwhile, CMS has released "health outcomes results" from the first quarter of DME competitive bidding in nine areas of the country. The outcomes are based on "real-time claims analysis" for groups of beneficiaries potentially affected by bidding, the agency says.

The results "show no significant changes in health outcomes for these groups," CMS says.

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