Mishandling of Competitive Bidding Process

Floor Speech

Mr. THOMPSON of Pennsylvania. Mr. Speaker, I rise to voice my serious concern with Medicare's implementation of the durable medical equipment, prosthetics, orthotics, and supplies competitive bidding program.

Despite strong congressional concern about the need for further transparency, the lack of binding bids during the contract process, and the improper vetting of the financials of many firms that have been awarded contracts, Medicare still plans to move forward with implementing round two of the program on July 1.

We learned that Medicare awarded contracts under the program to dozens of firms that do not have the proper credentials to serve these contracts. In other words, leaving Medicare beneficiaries without the needed access to the durable medical equipment that allows them to live with dignity during times of disease and disability.

Unfortunately, CMS has created a situation where servicing these contracts will either violate State licensure requirements or leave contracts unfulfilled, again leaving beneficiaries and consumers without access to the health care equipment that they need. Furthermore, unqualified bids from firms that are unlicensed to service contracts create significant distortions of the bid prices in every bidding area nationwide.

I'm extremely concerned that mishandling of the bidding process is going to have a devastating impact on Medicare beneficiaries. This is a serious issue that warrants a full review of the process and a delay of round two until this fatally flawed program is fixed.

I encourage my colleague to join me and Congressman Bruce Braley in cosigning a letter to the Medicare administrator requesting an administrative delay of the durable medical equipment competitive bidding program. This is absolutely necessary to ensure that older adults have access to the equipment that they require to live at home with independence and dignity. It also is about jobs as one of the unintended consequences, I believe, but it is still a devastating consequence regarding how the implementation of round two will continue to see the loss of small businesses all throughout this great Nation. And so I just encourage my colleagues to join Congressman Braley and I in signing this letter to the Medicare administrator.

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