Score! CBO estimates bill would increase revenue
WASHINGTON – The industry’s binding bids legislation got another boost yesterday when the Congressional Budget Office said that passing it could increase revenues.
In a statement, the CBO estimated that H.R. 284 would increase revenues by about $1 million.
The CBO stated:
CBO expects that implementing the legislation would not have a significant effect on the prices that CMS establishes for DME items, but that it would result in the forfeiture of a small number of surety bonds. CBO estimates that the revenues from such forfeitures will amount to less than $500,000 in each year, and will total about $1 million over the 2015-2025 period. This estimate assumes enactment in the spring of 2015.
H.R. 284 was introduced Jan. 12, along with Senate companion bill S. 148. The bills would require providers to obtain bid bonds and provide proof of licensure before submitting bids. H.R. 284 currently has 59 co-sponsors; S. 148 has five.
The CBO score is the latest step forward for the bill. In late February, the House Ways and Means unanimously voted to pass the bill. The next step is to bring it to the house floor for a vote, said AAHomecare. The association is working with House leadership to expedite the process.