A pair of United States Congressmen, Pat Tiberi (R-OH) and John Larson (D-CT), released the news last week that the Medicare Competitive Bidding Improvement Act has passed the Ways and Means Committee.
The legislation, which will protect senior citizens and others who use durable medical equipment from predatory vendors, was introduced earlier this year by Tiberi and Larson and will now move to the floor of the House for full consideration.
“I am pleased that we are one step closer to removing bad actors from the durable medical equipment bidding process,” Tiberi, a member of the Ways and Means Committee, said. “This measure would remove the incentive for intentional low-ball bids for Centers for Medicare and Medicaid Services (CMS) DME contracts. Currently, these bids plague the bidding process and contribute to unsustainable lower overall rates calculated to reimburse those suppliers who do provide products. Requiring binding bids would insert accountability into the bid process, help seniors access high-quality equipment and services, and improve health outcomes.”
Under current law, CMS supplier bids are non-binding. Non-binding bid opportunities often result in companies submitting very low bids to win the contract but then never offer products at the bid levels submitted, since they are not required to do so. The Medicare Competitive Bidding Improvement Act makes all bids binding, ensuring that the pricing remains fair and in good faith.
“I have long had concerns that the current bidding process for medical supplies in Medicare would compromise accessibility and quality of this vital equipment for beneficiaries,” Larson said. “The measure that moved forward today will go a long way to establishing a more fair bidding process to help ensure that seniors and the disabled are able to access high-quality services within their communities from local providers.”
The Senate companion bill has already been introduced by Sens. Rob Portman (R-OH) and Ben Cardin (D-MD), and is moving through the committee process.