Blackburn Leads Effort to Protect Access to Medical Equipment

Press Release

Congressman Marsha Blackburn (R-TN) is leading the effort on Protecting Access through Competitive-pricing Transition (PACT) Act, legislation that will protect both seniors and individuals with disabilities from a burdensome program that complicates their ability to receive quality medical equipment in a timely manner as well as the small, local businesses that supply medical devices.

In business, competitive bidding is used to keep costs down and to guarantee a supply of a goods. Unfortunately, the competitive bidding program at the Centers for Medicare and Medicaid Services (CMS) was not implemented as it should have been. CMS encouraged low ball bids by companies and then those companies have been unable to keep up with the demand for their products. What CMS calls "competitive bidding' limits access to medical services needed by seniors and individuals with disabilities. People in rural areas, long distances from the companies who have bid in this process, are particular susceptible to limited access to needed equipment.

"We've seen in areas of the country where Medicare has already implemented competitive bidding that the program is inefficient and puts those who need access to medical equipment at risk. While the program aims to award contracts to suppliers who bid the cheapest price, it disregards the ability of the contractor to actually supply the equipment. It makes no sense to put our seniors at risk by implementing a program nation-wide that has already been a proven failure," Blackburn said.

The PACT Act will implement a market-pricing program (MPP), a state-of-the-art auction system that is designed to save as much money as the competitive bidding program, but unlike the competitive bidding program, will establish market-based prices and ensure a financially stable program, while improving patient access to quality items and services.

Additionally, this legislation will guarantee access to needed medical equipment and level the playing field for our small business owners who provide needed medical equipment.

"This legislation is a step in the right direction to ensure Tennesseans have access to the life-saving medical devices they need while also protecting the small businesses who make Tennessee a world-leader in the medical device industry," Blackburn said.

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