AARC Follows Competitive Bidding, ‘36-Month’ Home Oxygen Issues
June 30, 2008
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Competitive bidding has been in the news lately, but it’s been on the mind of the AARC for years.
Originally set to begin on July 1, it appears that a new Medicare package in Congress will delay the implementation of competitive bidding. Likewise, the 36-month rent-to-own provision for home oxygen equipment may be set to kick in at the beginning of next year, although action in Congress may make changes to that rule also.
But our standard in support of any issue: put the patient first.
Competitive Bidding
The concept of competitive bidding began 12 years ago, and AARC has been providing input to the process since that time. In the 1990’s AARC past President Patrick Dunne was the respiratory therapy community’s representative the Medicare’s National Technical Experts Panel on the development of the competitive bidding endeavor.
Our concern was and still is that the Medicare recognize the service component that suppliers provide in the delivery of home respiratory equipment and that any payment must reflect that fact.
Competitive bidding was put in place to lower the costs to Medicare for home medical equipment. Under the program, a competition among suppliers who operate in a particular Competitive Bidding Area (CBA) is conducted. Suppliers are required to submit a bid for selected products. Not all products or items are subject to competitive bidding, but oxygen is one of the categories falling under competitive bidding. CPAP and other respiratory assistive devices are also included.
Bids are evaluated based on the supplier’s eligibility, its financial stability and the bid price. Contracts are awarded to the Medicare suppliers who offer the best price and meet applicable quality and financial standards. Contract suppliers must agree to accept assignment on all claims for bid items and will be paid the bid price amount. The amount is derived from the median of all winning bids for an item.
Correspondence related to the AARC’s involvement in competitive bidding is posted on our government affairs page.
36-Month Rent-to-Own
Furthermore, the AARC has been opposed to Congressional action that enacted the Medicare 36-month rent-to-own for continuous oxygen use. This issue triggered the first use of the AARC's 435 Plan, the call to action on the part of states to contact members of Congress in opposition to the passage of this new requirement. Opposing the 36 month cap has been a key issue that the AARC's PACT representatives lobbied Congress on during our annual Hill Lobby Day. Moreover, opposing the oxygen caps has been an issue we highlight on Capitol Connection and urge members to email their members of Congress on.
Applicable documents are posted on the AARC’s Government Affairs website.