Posted by Helen-CO on 5/22/2008, 1:24 pm, in reply to "Re: More on O2"
24.8.179.226
It was May 6 - I watched parts of it on the internet House Ways & Means connection. Here's AAHomecare's summary a day later:
> Stark and Health Subcommittee Grill CMS over Bidding System Problems
>
> The competitive bidding program is "somewhere between flawed and lousy,”said
> U.S. Representative Pete Stark (D-Calif.) in yesterday’s House Ways and
> Means Health Subcommittee hearing on the bidding program. The hearing was
> held because of concerns Stark and his colleagues have heard from
> constituents in the homecare community.
>
> In opening remarks, members of the Health Subcommittee were sympathetic to
> the plight of the home medical equipment provider saying the program needs
> to be examined. Ranking Member Jim McCrery (R-La.), however, advocated
> going
> forward with the bidding program saying,“we have to hold out hope for
> helping to control cost.”
>
> Kerry Weems, Acting Administrator for CMS, sat alone on the first panel
> and
> faced a group of combative congressmen. Weems’testimony focused on cost
> savings and education programs with charts and graphs included in his
> presentation. But members of the Subcommittee asked pointed questions
> about
> problems with the program such as the disqualification of 63 percent of
> bidders in Round One, choosing median pricing rather than lowest pricing,
> and not allowing willing providers to supply products at the lowest price.
>
> Stark asked pointed questions about how the prices were chosen from the
> bids. As Weems explained how median prices were determined to be the best
> choice, Stark expressed concern that this was price setting, saying“Sounds
> like you’re price setting to me. Sometimes you’re bidding, sometimes you’re
> not. It’s at your convenience.”Stark also asked what CMS had learned from
> the Round One of bidding and what they would change about the program for
> the Second Round. Weems said,“I can’t think of anything I would
change.”Stark’s
> questions ended with,“I think I’ve seen you’re a useless witness.”
>
> The harsh questioning continued from every member of the panel, with
> specific questions including“why not more bids?”and“would a 60-day delay
> to
> explore issues from Round One help?”The Members also asked about
> subcontracting and clarified that subcontractors do not have to be
> accredited until September of 2009, although Weems said it would be a“bad
> business decision”on the part of the contract winner to enter into a
> relationship with a non-accredited company.
>
> Rep. Xavier Becerra (D-Calif.) pressed Weems on the responsibilities of
> subcontractors in the bidding program, forcing the acting CMS
> Administrator
> to admit on the record that the accreditation requirement was for the
> contract supplier and does not apply to entities the supplier chooses to
> subcontract with. Becerra said subcontractors should be held responsible
> as
> well and highlighted the fact that subcontractors with no experience could
> be utilized. He also noted that it seems counterintuitive to have
> competitive bidding yet limit the number of contractors, stating that a
> more
> open competitive process would ensure better prices.
>
> Reps. Lloyd Doggett (D-Texas), Phil English (R-Pa.), Sam Johnson
> (R-Texas),
> Mike Thompson (D-Calif.), and Pat Tiberi (R-Ohio) all pressed Weems on a
> range of issues including fraud, transparency in the bidding process,
> inexperienced contract winners, and accreditation.
>
> Weems said Round One contract winners would be announced next week.
>
> The second panel consisted of Tom Ryan, representing the American
> Association for Homecare (whose testimony was highlighted in yesterday’s
> AAHomecare Bidding Alert). The panel also had Kathleen King, director of
> health care, U.S. Government Accountability Office; Peter W. Thomas,
> health
> task force co-chair for the Consortium for Citizens with Disabilities;
> Thomas J. Hoerger, Ph.D., a senior fellow at the Research Triangle
> Institute
> (RTI), a contractor that studied the demonstration projects for
> competitive
> bidding.
>
> Tom Ryan, past chairman of the American Association for Homecare and CEO
> of
> Homecare Concepts, provided testimony on the industry’s concerns about
> competitive bidding, saying,“This Medicare bidding program is a train
> wreck.
> But as this program jumps off the tracks, the attitude of CMS is clearly‘full
> steam ahead.’”Ryan called for an immediate halt to the program.
>
> Ryan told the Subcommittee,“The wide range of problems and questions about
> the program must be independently evaluated, and an alternative process to
> determine payment rates for home medical equipment must be explored.”
>
> The hearing reinforced Congress’interest in the program and Members made
> it
> clear that the system needed to be changed. Stark said he was not sure
> that
> he could come up with a legislative fix for this year but hoped to resolve
> the issue soon.
>
> Let’s keep up the volume of concern about this bidding program and make
> sure
> Congress understands the value and importance of homecare.
>
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