Device-makers slam Medicare competitive bidding expansion

Editor’s Note: CRE has long warned about the expansion of un-competitive bidding.

From: Healthwatch/The Hill’s Healthcare Blog

By Elise Viebeck

The medical-device lobby is railing against a new expansion of Medicare’s competitive bidding program for durable equipment, a policy projected to save billions of dollars for beneficiaries and the Part B Trust Fund by 2022.

The Advanced Medical Technology Association (AdvaMed) said that the expansion could deprive patients of their preferred medical tools and tests.

“The competitive bidding program is built in such a way that the lowest  bid — which may not be the right bid — may compromise patient access to products best suited for their needs,” AdvaMed President Stephen Ubl said Thursday in a statement.

“These types of proposals may serve short-term interests to cut Medicare spending, but they ignore the longer-term cumulative impact these policies have on patient access to appropriate treatments and cures.”

The Centers for Medicare and Medicaid Services (CMS) announced the new policy on Wednesday. Officials estimated that savings would total $25.7 billion for the Medicare Part B Trust Fund and $17.1 billion for beneficiaries over the next nine years.

“Using market-based prices set through competition will help ensure the long-term sustainability of the Medicare program,” the agency said in a press memo.

AdvaMed has expressed concerns in the past about the impact of competitive bidding on patients and small device companies. The rule enacting the cost-saving program came out in 2007.