Minnesota Medicaid could have saved millions with bid pricing, OIG says

Tuesday, February 11, 2014

ST. PAUL, Minn. – The Minnesota Medicaid program could have saved an estimated $2.27 million in one year by establishing a DME competitive bidding program similar to Medicare’s, according to a new report from the Office of Inspector General (OIG). The OIG determined that average Medicare payment rates obtained through competitive bids for 42 selected DME items were significantly lower than Minnesota’s average Medicaid payment rates. The state agreed that it could achieve lower rates of payment for selected DME items; however, it did not concur entirely with the recommended approach.