CMS Replaces Storefront Fraud with Bidding Fraud

In a very informative Home Care Magazine article reprinted below, the writer identified many of the fatal flaws in CMS’s DME competitive bidding program. CRE is accurately quoted in the article as stating that CMS has established a program that encourages fraudulent bidding since the bids are not binding (see last paragraph). Therefore, at the same time CMS is working to combat storefront fraud, they are opening the door to a new type fraud, although one that is much harder to detect. Professor Cramton and his 160+ co-signatories warned that under CMS’ bidding program, “fraud and abuse would grow.”

HHS, FBI and other law enforcement agencies are cracking down on storefront fraud. Who will fight the new bidding fraud allowed by CMS?