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The Medicare competitive bidding program has led to adverse health outcomes and disrupted access to medical supplies, contrary to Centers for Medicare & Medicaid Services claims. The program

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Area of Science:

  • Health policy
  • Healthcare economics
  • Medical device access

Background:

  • The Centers for Medicare & Medicaid Services (CMS) implemented a competitive bidding program in 2011.
  • The program aimed to reduce costs for durable medical equipment, prosthetics, orthotics, and supplies (DMEPOS).
  • Concerns exist regarding the program's impact on beneficiary access and health outcomes.

Purpose of the Study:

  • To evaluate the failures and adverse health outcomes of the Medicare competitive bidding program.
  • To analyze the discrepancies between CMS reports and observed program impacts.
  • To provide a rationale for suspending the program pending improved CMS monitoring.

Main Methods:

  • Review of the National Minority Quality Forum (NMQF) study findings.
  • Analysis of economic modeling by McGeary and Katzman (2004) on program design flaws.
  • Discussion of unintended consequences and potential patient safety risks.

Main Results:

  • The NMQF study reported failures and adverse health outcomes.
  • CMS reported no disruption or adverse outcomes, despite early signals of disruption.
  • Economic modeling indicated significant flaws in the program's design.

Conclusions:

  • The Medicare competitive bidding program has had negative consequences for beneficiaries.
  • CMS's monitoring protocols are insufficient to protect Medicare beneficiaries' safety.
  • The program should be suspended until effective monitoring can be implemented.