Medicare has published the “ new rates “ on the 5 bid product categories. Their were roughly 1400 companies in 9 cities that submitted bids; best quess is that 364 providers will be offered contracts. Medicare has not released the names nor have they released how the bids were evaluated. This lack of transparency prompted 136 representatives to send a letter to CMS Administrator Donald Berwick asking to release the provider names and the overall qualifications of these providers. The issue in the first go around was bidders did not have the financial resources to deliver services in a large area. NOTE: Rotech Healthcare was offered 17 contracts in this latest bid and has $ 513 million in long term debt and has been considering filing for BANKRUPTCY and states it will lose up to $ 900,000 in the 1 st qtr. 2011.
In the DFW area, estimates are 37 selected providers with 2 from out of state. These providers have to service all 11 counties. The average discount on these bids was 32 % off the Medicare allowable schedule; this does not take into account the 9.5% reduction all providers took in 2009. What business can stand a 42 % plus cut and no fee increases for 3 years?
The unintended consequences for Beneficiaries are many:
* Access, choice and quality. Eliminating 80 to 90% of qualified providers will create an access problem for all consumers, not just Medicare patients.
* Lower payments to suppliers will reduce access to high quality, brand name and customizable equipment.
* Quality and service will deteriorate. Suppliers will reduce service and quality to make a profit.
* This program is not competition; it distorts the marketplace by reducing competition. The Government is creating OLIGOPOLIES.
* Estimated 2200 jobs will be lost in DFW area. Overall 100,000 jobs by 2013 when the remainder of the country is covered.
The program takes affect Jan. 1, 2011
Call your Legislator today, we need access and choice. Your local providers are being forced out of business and in the long run this reduces competition.
Tom Polston
0 Responses to “UPDATE ON COMPETITIVE BIDDING, DFW AREA”