CMS Seeks 518% Budget Increase for Competitive Bidding

From: CRE

At a time of harsh budget austerity across the government, CMS is seeking more than a five-fold increase in their budget to expand competitive bidding.  HHS/CMS’ FY 2013 Justification of Estimates for Appropriations Committees budget document states: 

Expand Durable Medical Equipment (DME) Competitive Bidding: CMS is requesting $55.0 million, an increase of $46.1 million above the FY 2012 enacted level.  In FY 2013, under the second round, CMS will expand operations to 91 additional Metropolitan Statistical Areas (MSAs), for a total of 100 MSAs, and implement a National Mail Order competition.

The Medicare program realized an average reduction in allowed charges of 54 percent through the first nine months of the Round 1 Rebid.  Lower prices from this expansion will take effect in FY 2013, resulting in $280 million in beneficiary savings.  CMS estimates an eight-fold savings associated with this effort in 2013 and nearly $25.7 billion in savings over a ten-year window beginning in 2013.