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Committee on Ways and Means For Immediate Release Scully Supports Competitive Bidding in Medicare System WASHINGTON - Thomas A. Scully, Administrator, Centers for Medicare and Medicaid Services (CMS), stated his strong support for competitive bidding for durable medical equipment (DME) in a recent letter to Chairman of the Ways and Means Committee, Bill Thomas (R-CA). “I am very supportive of a well-structured competitive bidding process and hope to work with you [Thomas] to put one in place,” said Scully. The Medicare Modernization and Prescription Drug Act of 2002 contained an important provision for the competitive bidding of DME, such as bedpans, oxygen and other medical supplies. “I am pleased that a provision to make competitive bidding a permanent part of (the) Medicare program was included as part of the Medicare Modernization and Prescription Drug Act of 2002, which passed the House in June,” said Scully. “…this is an important step toward improving Medicare for our beneficiaries and replacing inflexible fee schedules with a fair and effective way to pay competitive, market prices.” Today Medicare pays more for these supplies than other government programs, and, in some cases, more than local drug store price. CBO has found that it will save the taxpayers over $7 billion by ensuring that Medicare does not overpay for supplies. CMS actuaries have found significant savings for Medicare beneficiaries from lower Part B premiums and co-pays for these supplies. States will also spend fewer of the scarce Medicaid dollars to cover cost sharing for the poorer Medicare beneficiaries. “Since I became Administrator of the Centers for Medicare and Medicaid Services, one of my highest priorities has been to ensure that our Nation’s seniors and disabled individuals have access to necessary health care,” said Scully. “I look forward to working with you [Thomas] on implementing this important program in Medicare.” Click on the link to get a copy of Administrator Scully’s letter and a background document on DME competitive bidding. |