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 The following is a note from Ron Bendell, president of VGM & Associates and John Gallagher, vice-president of Government Relations, VGM & Associates.
June 13, 2008
Today is a great day....
Fortney “Pete” Stark (D-CA), Chair of the House Ways and Means Health Subcommittee and Rep. Dave Camp (R-I.) have introduced HR 6252 which would postpone the start date of the DMEPOS competitive bidding program. “Round One”, set to take effect on July 1 and affect ten large metropolitan areas, would be postponed for 18 months. “Round Two”, which includes an additional seventy metro, would be delayed by 36 months. The bill would offset the estimated $3.1 billion, five-year cost of the delay by making a 9.5 percent, nationwide cut in 2009 to fees for only the types of equipment subject to the bidding program, then a 2 percent increase in 2014.
In the Senate, Finance Chairman Max Baucus (D-MO) and Ranking Member Charles Grassley (R-IA) support the delay. Some industry stakeholders have commented that the bipartisan support had increased the likelihood of delaying the program “to about 80/20”.
On Thursday Baucus failed in his attempt to obtain the 60 votes required to get cloture (end of debate) on S.3101 (The Medicare Improvements for Patients and Providers Act of 2008, which includes the so-called “doc fix” a key component of the Medicare bill).
Baucus has returned to Montana for his son’s wedding and the bill will be debated next week. Stark is working to get his version of the bill to the House floor next week. The process will go fast. As Baucus is unlikely to get the 60 required votes he will need to compromise his bill with both Stark and Grassley. Due to the critical “doc fix” issues, we believe this bill must be passed in the next ten to twelve days. The ideal situation would include the Senate Finance Committee (Baucus and Grassley) agreeing to the language in Rep Starks’ bill with modifications (Grassley’s bill does not cut payment levels for oxygen equipment or power wheelchairs as does Baucus' measure) such that there is identical language in both the Senate and House versions. If this occurs - and both bills pass – conference is waived and the bill is sent directly to the President.
VGM is not pleased that the offset "pay for" is not an across-the-board cut. However, these bills will allow the industry a chance to get past the Medicare administration of Leavitt and Weems. And, regardless of who wins the White House, it is unlikely that anyone will be so wedded to the competitive bidding program and wish to continue the fight. This is what we the industry needs.
On a related matter, we are hearing from reliable sources that certain large national providers are trying to derail this process and have the support of two members of the house; Reps. Barton (R-TX) and Deal (R-GA). Accordingly, now is the time for the industry to unite. While the best scenario would have been no cuts to DME, in today’s “pay-go” environment on Capitol Hill, the industry is faced with the reality of reduced reimbursement. As such, we all would rather see a much smaller percentage cut that would have been achieved with a fair, across-the-board cut. HR 6252 was introduced yesterday in its final form. While we can debate at length what percentage cuts should be involved, the current form or circumstances cannot be changed. Now, more than ever, we must now unite and enthusiastically support HR 6252.
VGM, state leaders and many other stakeholders have been working for many years to defeat competitive bidding. Let’s not give up now. We respectfully urge you to notify your membership to join the support of the efforts of Rep. Stark and Senators Baucus and Grassley.
At Your Service,
Ron Bendell
President
VGM & Associates
John Gallagher
VP, Government Relations
VGM & Associates
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