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Medicare Cuts DME Prices by 1/3rd.
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Medpagetoday.com REPORTS HERE that "the Centers for Medicare and Medicaid Services (CMS) announced that it will cut reimbursement rates an average of one-third for durable medical equipment (DME) in nine major cities. The cuts signal the start of Medicare's competitive bidding program, which will be used to determine the price Medicare pays for certain durable medical equipment, prosthetics, orthotics, and supplies."

"The bidding process just announced will result in reimbursement rates that are about 32% lower than current rates, which will save more than $17 billion over the next decade, according to a CMS press release release. DME supplies include oxygen concentrators, semi-electric hospital beds, and diabetes test strips."

"When this program begins in January, Medicare beneficiaries in these nine areas will see substantially lower prices than they are paying now," CMS Deputy Administrator and Director for the Center for Medicare Jonathan Blum said in the release.

"The American Association for Homecare, which opposes competitive bidding, said the new bidding program relies on "suicide bids" that will drive DME suppliers out of business....Tyler J. Wilson, president of the association, said in a release. 'We're willing to accept lower reimbursements and no one is more opposed to fraud that we are, but this bidding program will merely reduce access to care for the nation's most vulnerable population.' The release stated that the bidding program requires suppliers to submit "unsustainable" bids that are far below market rates in order to win a contract.  The cuts will go into effect at the beginning of 2011 in the following cities: Charlotte, N.C.; Cincinnati; Cleveland; Dallas; Kansas City, Mo.; Miami; Orlando; Pittsburgh; and Riverside, Calif.


 
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Added: September 07, 2010. 05:19 PM CDT
When a DME company supplies equipment it comes with home delivery, setup, warantee, 24 hour service etc. Walgreens? When a customer has a problem with their wheelchair on saturday at 10pm I drive to the customers house (no matter where it is) and fix it (at no charge to the customer)!! Walgreens?? We have to meet Medicare, state, federal regulations to Rent medical equipment to a Medicare customer(at a huge cost), Walgreens??? Keep cutting DME and I will put in a drive through, just like I could go on...But I doubt any of you understand the costs of running a 24/7 DME business.
Chris
Added: July 31, 2010. 08:09 AM CDT
Good Point
I had a friend who used to sell DME to nursing homes. He "proudly" told of how he he used to "sell adult diapers". He would go to the local drug store and buy boxes of them, then resell them to the nursing homes at something like 10 times the cost, "because Medicare would cover it."

Just because one "can" do a thing does not make it the "right" thing to do.
Anonymous
Added: July 30, 2010. 07:04 PM CDT
It's about time
My in-laws recently needed a simple wc and rather than getting the one at Walgreens for $157 (no use of Medicare) they went to the local DME provider where the price was $440 'the Medicare allowable'. DME and Big Phrma rip us off via Medicare more shamelessly than the drug dealer on the corner. I can only guess which one really hurts the USA more.
Mike
 
 
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