US - Industry, Officials & Lawmakers Debate Bidding For Durable Medical Equipment

Recently, a House Ways and Means Healthcategories. The next year in 2009 it would be
Subcommittee hearing attended by lawmakers,extended to 70 MSAs and more thereafter. For now
officials and representatives of the durable medicalthe product categories are limited, though in future a
equipment industry argued a Medicare competitivelarger number of categories would be covered. There
bidding program for Durable Medical Equipment (DME).are various categories of medical instruments used in
The program when implemented is expected to yieldhospitals some are anesthesia instruments,
an average decrease of 26% in the prices of medicalcardiovascular instruments, surgical instruments, etc.
instruments and equipment.The program is expected to commence from July 1,
The Program2008 and after it's fully implemented by 2010, it could
The programs requires Center for Medicare andresult in savings of about $1 billion. Given, that last year
Medicaid Services (CMS) to select durable medicalin 2007 Medicare spent $8.5 billion on Durable Medical
equipment suppliers to participate in Medicare basedEquipment (DME), a saving of about 26% should be a
on bids submitted. This program comes in the wake ofwelcome consequence.
the 2003 Medicare law that mandated the program asThe Concerns
part of a bigger effort to execute competitive bidding.A couple of concerns expressed during the meeting
To begin with the program will be executed in 10 ofincluded complaints from providers being unfairly
the largest Metropolitan Statistical Areas in 2008, andrejected, the winning suppliers not able to provide
will be applicable to 10 of the top durable medicalequipment.
equipment, prosthetics, orthotics and supplies product