American Association For Homecare: Competitive Bidding

"Competitive" Bidding Will Hurt Seniors & Patients

Congress must stop the Medicare “competitive” bidding program for home medical equipment and services (HME). The bidding program restricts access to quality home care for seniors and people with disabilities. Providers of home medical equipment face serious disruption to their businesses if competitive bidding becomes the mechanism for Medicare reimbursement rates.

“Competitive” bidding in Medicare reduces access to care, patient choice, and quality of care.

"Competitive” bidding is actually anti-competitive.

Home medical equipment and services is already a cost-effective alternative to expensive institutional care and a solution for controlling spending growth in Medicare.

What is “Competitive” Bidding?

“Competitive” bidding in Medicare is a proposal that sounds good, but, in fact, reduces access to care, patient choice, and quality of care.

It selectively contracts with a limited number of homecare providers based solely on the lowest bid prices.

It results in lowest common denominator health care for seniors and homecare patients.

It forces out providers who utilize high-quality medical equipment or provide critical patient services.

It forces certain patients to switch away from providers they rely on and trust.

It ignores the provider's ability to serve a geographic market, meaning fewer home visits to patients in rural areas.

Reduced access to equipment service for patients.

Reduced access to commonly prescribed products.

Fewer resources to set up/adjust wheelchairs, walkers, and hospital beds.

Will “Competitive” Bidding Save the Government Money?

No, it will increase costs by forcing seniors to extend hospital stays, instead of receiving care in their homes.

More expensive, longer hospital stays, since hospitals would have to use multiple home medical equipment and service providers to equip patients they discharge, instead of a single, one-stop provider.

Home medical equipment and services represent the most cost-effective, slowest-growing portion of Medicare spending, increasing only 0.75 percent per year. That compares to more than 6 percent annual growth for Medicare spending overall.

Home medical equipment represents only 1.6 percent of the Medicare budget.

Won’t “Competitive” Bidding Increase Competition?

No. Despite its misleading title, “Competitive” Bidding is actually anti-competitive.

During its trial period in 2008, the vast majority of providers were shut out of the program, proving that the bidding program depresses competition and limits patient access and choice.

The initial round of bidding eliminated 90% of qualified home medical equipment and service providers from serving Medicare's seniors.

It is similar to a closed-model HMO and will have the effect of government-mandated consolidation in the home medical equipment and services sector.

Click here for the effects of the Competitive Bidding 2008 trial

What is American Association for Homecare doing to address Competitive Bidding?

The American Association for Homecare is urging members of the new administration and the Congress to review and rescind this harmful regulatory change.

The American Association for Homecare has written letters to key Congressional leaders, as well as Health and Human Services Acting Secretary Charles Johnson, urging them to review and rescind “Competitive” bidding.

Congressman Kendrick Meek (D-Fla.) introduced a budget-neutral bill (H.R. 3790) to repeal the controversial and deeply flawed “competitive” bidding program in Medicare for durable medical equipment and services, such as medical oxygen and wheelchairs that are medically required for use in the home. The American Association for Homecare urges you to call your Representative today and ask them to co-sponsor H.R. 3790.

Input your ZIP code below to write your congressman opposing “competitive” bidding.