Issue link: https://read.dmtmag.com/i/45026
News 4 HME NEWS / NOVEMBER 2011 / WWW.HMENEWS.COM DEFICIT REDUCTION HME continues to pop up in talks BY LIZ BEAULIEU, Editor WASHINGTON – The Medicare Payment Advi- sory Commission (MedPac) and the presi- dent made recommendations in October to the Congressional "supercommittee" charged with coming up with a plan to shave at least $1.2 trillion from the deficit over 10 years. Two of their recommenda- tions: Leverage competitive bidding for fur- ther savings and implement prepayment reviews for all power wheelchairs. MedPac's "draft list" of recommenda- tions, which represents a total of $233 billion in savings over 10 years, includes: "Apply the competitive bidding offset to all competition-eligible DME categories starting in 2012" for $2 billion in savings over 10 years; and "Apply the competitive bidding offset to the DME categories never subject to competitive bidding" for $8 bil- lion in savings over 10 years. Another recommendation: "Additional reductions through competitive bidding or fee schedule reductions to payments for home oxygen" for $5 billion in savings over 10 years. MedPac's recommendations raised a number of questions for stakeholders. In DEFICIT SEE PAGE 10 N.C. providers rally for jobs Finally, compression your patients can wear With reasons ranging from limited mobility or dexterity to complaints about overall general comfort, many individuals struggle with donning or wanting to wear their compression garments every day. Core-Spun by Therafirm® socks, a patented innovation by Therafirm® gradient compression , are made with the unique technology of Core- Spun yarns for an ultra stretchy compression sock that is easier to put on and exceptionally comfortable. WHAT PHYSICIANS ARE SAYING: "I know that compression garments can be difficult for my patients to don themselves. Many openly admit they have not worn the garments when I visit with them at follow-up appointments. I am so pleased to have seen an increase in patient compliance since I started recommending Core-Spun by Therafirm." WHAT PATIENTS ARE SAYING: "I wanted to tell you about my experience with Core-Spun compression socks. It used to feel like you were putting a 100 pound leg in a 20 pound sock with other compression socks. They were impossible to get on and to pull them up. Core-Spun are much different, they stretch more, so they are much easier to get on. I'm so glad that someone told me about them. They are the BEST thing that happened to compression socks!" • Excellent margin for providers while affordable for patients • Available in Light, Mild, Moderate and Firm compression levels • Full calf and cushioned sole styles also available For more information or a Professional Trial Sample contact: 800.821.3094 • info@therafirm.com • therafirm.com HME providers in North Carolina in September held a rally near a local business where President Obama was touting his jobs bill. The rally, organized by the North Carolina Association for Medical Equipment Services (NCAMES), called attention to adminis- tration policies like competitive bidding that kill jobs. Multiple regional news outlets interviewed providers and Beth Bowen, executive director of NCAMES. "At the same time the president is touting a bill to create jobs, his own policies are literally killing jobs in the middle of a recession," Bowen stated in a release. "What's worse, the jobs being lost are having a negative impact on quality access to patient care." Relief for original bid winners? CardioSom's lawsuit serves as a test case for 300-plus providers that were awarded contracts BY THERESA FLAHERTY, Managing Editor WASHINGTON – A recent ruling by a fed- eral appeals court could pave the way for HME providers who were awarded contracts in the original Round 1 of competitive bidding to sue for damages. CardioSom in 2008 filed a lawsuit for breach of con- tract in the Court of Fed- eral Claims, after Congress delayed the competitive bid- ding program for 18 months and rescinded the contracts of winning suppliers. The Court of Federal Claims ruled Car- dioSom had no basis to sue, saying that when Congress terminated the contracts, it also barred lawsuits. But an appeals court has disagreed, saying that contract winners have the right to sue. "Companies like Cardio- Som started spending money, hiring people and getting space," said attorney Jerry Stouck, a shareholder with Green- berg Traurig in Washington, D.C., which represents CardioSom. "They were expecting to be one of the exclusive providers in those areas for three years, which is worth something." CardioSom, which won contracts for CPAP and oxygen in nine of the 10 competitive bidding areas is seeking damages, including lost profits for the three-year period of the contract. Now CardioSom will go "Companies like CardioSom were expecting to be one of the exclusive providers in those areas for three years, which is worth something." Jerry Stouck back to the lower court and press forward with its lawsuit. Ultimately, CardioSom's suit will serve as sort of a test case for the more than 300 suppli- ers that were awarded con- tracts and who may want to sue for damages, said attorney Bill Eck, a shareholder with Greenberg Traurig. "Each company will have its own damages and expenses," he said. "But in terms of the basic issues— did the government breach the contract? Is the govern- ment liable? Then the answer is the same for everyone." HME Industry formalizes market-based pricing strategy. . . . . . 1 Interstate bidding areas create problems. . . . . . . . . . . . . . 6 Payers cherry pick accreditation agencies ............ 12 State news: Kentucky wrangles with managed care .... 15 ■ Lawmakers on both sides of the aisle face a difficult 2012 election, says VGM's John Gallagher. See story page 14.