On the recordSeptember 10, 2013
On August 22, the United States Department of Health and Human Services Inspector General, Daniel Levinson, announced his decision to initiate an investigation into the Centers for Medicare and Medicaid Services, aka Medicare, and its handling of the Competitive Bidding Program for durable medical equipment, prosthetics, orthotics, and supplies. I initiated a request on June 20, 2013, following disclosures that CMS awarded contracts nationwide to suppliers that lacked the proper licensure and accreditation--clear violations of the agency's program guidelines for participation in the Competitive Bidding Program. The so-called ``competitive'' bidding model is being used by the government to procure goods and services for our Nation's seniors and those facing life-altering disease and disability. While CMS makes claims the Competitive Bidding Program will increase market competition and lower costs, in practice it's shown to be anything but competitive. Over the past several years, we've seen the program negatively affect seniors and force small medical companies, many that are local and the only entity capable of providing quality goods and a high level of service, out of the market and out of business. In 2011, more than 240 economists and market auction design experts wrote to President Obama concerning the flawed bidding model. The experts wrote: The current program is the antithesis of science and contradicts all that is known about proper market design.…
Source
govinfo.gov




