American Association for Homecare Study Demonstrates that CMS Competitive Bidding Program Decreases Competition

A study released by the American Association for Homecare demonstrates that the CMS Competitive Bidding program decreases competition.

Conclusions drawn from the study include:

During its initial implementaton in 2008, the vast majority of providers were shut out of the program.  Of the more than 4,000 providers in the initial bidding areas, only 376 were deemed to have met the bidding program requirements, which were not clearly defined. This “competitive” bidding program, in fact, depresses competition and limits patient access and choice.

During the bidding implementation, nearly 40 percent of companies awarded durable medical equipment contracts for Pittsburgh patients were located outside of Pennsylvania.