Lawmakers introduce bid bill

Friday, June 20, 2014

WASHINGTON – Reps. Pat Tiberi, R-Ohio, and John Larson, D-Conn., have introduced a bill that would require providers to obtain bid bonds as part of future rounds of competitive bidding.

H.R. 4920, the Medicare DMEPOS Competitive Bidding Improvement Act of 2014, would also require providers to prove they meet licensure requirements before they submit bids.

“AAHomecare is putting the full weight of the industry behind this practical piece of legislation,” stated Tom Ryan, president and CEO of the association, in a press release. “All providers and manufacturers should immediately ask their elected officials to support H.R. 4920.”

Per the new bill, if a provider receives and accepts a contract from CMS, the bid bond would turn into a performance bond. If a provider receives a contract offer but does not accept it and its bid is at or below the bid price, CMS has the option to collect on the bond.

AAHomecare believes the bill will “incentivize more responsible bids.”

“When bids don’t have to be honored, the whole process becomes hollow,” stated Robert Steedley, president of Barnes Healthcare Services and chairman of the association’s board of directors.