HME providers remain skeptical of CMS’s plans for competitive bidding 

YARMOUTH, Maine – No matter what CMS does going forward with its competitive bidding program, it’s no surprise that the respondents to a recent HME Newspoll feel the program is unsalvageable. 

As part of the announcement in May of a temporary gap in the program, CMS stated it plans to “implement necessary changes” to the program to establish sustainable prices and create savings for Medicare beneficiaries and taxpayers. 

“The bid program should go away,” said Lee Guay, director of Fairview Home Medical Equipment in St. Paul, Minn. “It was flawed from the onset.” 

In Round 2021, which expires Dec. 31, 2023, CMS did not see savings in 13 product categories and moved froward only with off-the-shelf back and knee braces. 

Respondents don’t believe results will be any different in the next round of the program, with 72% saying there will be no savings and 21% saying there will be savings in some product categories but not others. 

“It feels like Medicare is spending way more money implementing the program than they are saving at this point,” wrote one respondent. “We are below rock-bottom prices for most of the historic products included in competitive bidding.” 

Still, 80% of respondents expect CMS to rebid more than off-the-shelf back and knee braces in the next round, but they also say the agency needs to face the facts. 

“CMS must accept that they have squeezed all the savings they can out of most categories,” wrote one respondent, “and if they want patients to have a provider option, then they must increase reimbursement.”  

As it stands now, the program has driven many smaller providers out of business – the opposite of competition, respondents say. 

“Don't they see that the fewer companies left to bid, the less competition there is?” wrote one respondent. “All along, this idea of ridding the marketplace of competition seems to be the ultimate in shortsightedness.” 

In addition to creating savings, CMS’s goals for the program include reducing fraud, waste, and abuse – familiar buzzwords to everyone in the industry. Laurie Bachorek, COO of MetroCare HME in Fort Worth, Texas, urged her fellow providers not to wait for CMS to make the next move. 

“I know this industry will make our voices heard during public comment, but until then, I urge stakeholders to join their state associations and get involved with legislative efforts now,” she wrote.