Medicare to Expand Competitive Bidding on Equipment - NYTimes.com

Medicare to Expand Competitive Bidding on Equipment - NYTimes.com:

Medicare officials estimated that competitive bidding for home medical equipment would save more than $42 billion in the next 10 years — $17 billion for beneficiaries and $25.7 billion for the Medicare program.

Ms. Sebelius said the savings showed the value of the health care overhaul signed into law by President Obama in 2010.

The competitive bidding program was established, with support from many Republicans, under a 2003 law that added a prescription drug benefit to Medicare. In 2008, Congress temporarily delayed the program and terminated supplier contracts that were in effect. The 2010 law expanded the program.

Medicare has historically used a fee schedule to pay suppliers. Officials gave this example of the savings: Under the fee schedule, Medicare would have paid $2,080 for an oxygen concentrator last year, and the beneficiary would have paid 20 percent, or $416. By contrast, with competitive bidding, Medicare paid about $1,395, and the beneficiary paid $279.

- Sent using Google Toolbar

Sphere: Related Content