OIG once again highlights savings associated with bid program

Thursday, October 8, 2015

WASHINGTON – Four states could have saved an additional $12 million on certain DME items by using pricing comparable to Round 2 of competitive bidding and the national mail-order programs, according to a recent report from the Office of Inspector General.

In previous audits, the OIG found the states could have saved $18.1 million with pricing comparable to Round 1.

“We determined that opportunities exist for these states to lower provider reimbursement rates, resulting in approximately $30.1 million in potential cost savings for the states and the federal government,” stated the OIG in its report.

The OIG has recommended that CMS seek legislative authority to limit state reimbursement rates to Medicare rates and to encourage a further reduction of state reimbursement rates through competitive bidding or manufacturer rebates. CMS agreed.

This isn’t the first time the OIG has encouraged states to use competitive bid pricing. In June, the OIG made similar recommendations after it found that New York could have saved $8.9 million on select DME items; in 2014, it found that California could have saved $3.9 million.




You might want to hold your horses on lowering Medicaid rates as well, If you trim the entire market below what it takes to do business you may end up with no one to do the business! However, I think thats what they want?

Gotta love big government, maybe its time we all say CASH ONLY to medicare!