Moving the HME Industry Forward

Legislative/Advocacy

Numbers are in for Round One Recompete

November 4, 2013

WASHINGTON, DC – As expected, single payment amounts for round one recompete contracts were down across the board. Last week, CMS published the names of Round 1 Recompete contract providers. On average, reimbursement rates were 37% less than Medicare’s fee schedule rates.

In all, 997 contracts were awarded to 282 providers with 620 locations. Bidders that were not offered contracts are being notified by mail of the reasons they did not qualify, and how they can inquire about their bid status.

According to CMS, 97% of contract providers are already established in the bidding area, the product category, or both. CMS claims that small suppliers, those with gross revenues of $3.5 million or less, make up about 58% of the companies who signed contracts, although AAHomecare officials are investigating that claim.

“Too many HME companies have lost the opportunity to do business with Medicare and to help Medicare patients,” said Tom Ryan, AAHomecare president. “The ones who suffer the most are those very patients. Their ability to choose the best provider for their situation has been taken from them. The government should not be in the business of making life harder for the elderly and disabled.”

Average cuts by product category:
• Enteral Nutrients, Equipment and Supplies 41%
• External Infusion Pumps and Supplies 21%
• General Home Equipment and Related Supplies and Accessories 47%
• Standard Mobility Equipment and Related Accessories 34%
• NPWT Pumps and Related Supplies and Accessories 42%
• Respiratory Equipment and Related Supplies and Accessories 40%

Contracts and prices are scheduled to go into effect on January 1, 2014.

Round 2 Survey Closes Nov 5
There is still one more day to take a few minutes to complete AAHomecare’s Round 2 survey. Results from the survey will be used to help convince members of Congress who do not yet support H.R. 1717 that the problems with the so-called “competitive” bidding program are real, widespread, and that they are seriously impacting both beneficiaries and HME companies. The information you provide will be kept completely anonymous.