House pushes for competitive bidding in 2004

June 16, 2003 WASHINGTON - The House of Representatives introduced legislation on Friday that would phase in competitive bidding for durable medical equipment and medical supplies in 2005 and 2006. The legislation closely mirrors the House call for competitive bidding last year, but the new bill departs from its predecessor in several notable directions: - Congress would eliminate inherent reasonableness in areas subject to competitive bidding. But Congress specifically grants CMS the right to use information established during competitive bidding to adjust payments in other areas. - The legislation would let physicians prescribe a particular brand or item or mode of delivery or service if the item or service involved is clinically more appropriate. “That really ties suppliers hands if they can't afford, under competitive bidding, to provide it,” said one Washington insider. - The bill establishes a Program Advisory and Oversight Committee whose members would be appointed by the Secretary of Health and Human Services. The committee would provide technical assistance to CMS as it implements the program. Like its predecessor in 1997, the legislation presents the measure as a means to combat waste, fraud and abuse in the Medicare program. Unlike the Senate's version of Medicare reform, the House bill does not mandate quality standards for HME providers. However, this year's House package does require the Secretary to establish new quality standards for products subject to competitive bidding by July 1, 2004.