LEWISTOWN - State representatives voiced their support Tuesday for a bill that would eliminate competitive bidding on home medical equipment.
Rep. Glenn Thompson, R-Pa., and Rep. Jason Altmire, D-Pa., were two keynote speakers during a media conference call hosted by the Pennsylvania Association of Medical Suppliers.
According to a press release by the company, HR 3790 is a bill that would eliminate the bid program and reduce Medicare spending, preserve access to quality homecare, and save thousands of small businesses.
The bill was introduced on Oct. 13 and already has strong bipartisan support from 64 members of Congress and numerous national disability groups, the release states.
"Over the past year, numerous experts have said that this competitive bidding process ... could force small medical equipment providers nationwide out of the marketplace and make it harder for the millions of patients who rely on homecare to access the specialized equipment and services they need," according to the release.
John Shirvinsky, executive director of the Pennsylvania Association of Medical Suppliers, said the bidding program is deceptively labeled as "competitive."
Unless it is stopped by Congress, he said, "it will result in dire consequences."
Shirvinsky said competitive bidding could compromise one of Medicare's most cost effective options. Additionally, jobs could be lost and medical suppliers could be in jeopardy, he said.
Thompson, of Pennsylvania's 5th Congressional District, said medical equipment is lifesaving to patients.
Cost-effective health care in a home setting, Thompson said, allows patients to live at home and age with dignity.
"This was a bill I was very honored to sign on to," he said.
Thompson said competitive bidding is anything but competitive. Should the bidding program go into effect, monopolies would be created, Thompson said.
"The cost will grow tremendously," he said.
There are a variety of "mom and pop" operations in small communities, Thompson said. Citing Medicare data, in 2008 there were 4,127 durable medical equipment providers in nine affected bidding areas. That number decreased to 376, he said. This competitive bidding results in decreased competition, Thompson said.
The potential risks of creating monopolies also increases costs, Thompson said. It's already challenging for older adults, he said, that must manage large lists of resources to get the proper care.
"The things that they need are medically necessary," he said.
The bidding program would make it even harder on the elderly population because they would have to order outside of their area to acquire services and supplies, Thompson said.
Thompson said HR 3790 is a good bill that eliminates the bid program and goes toward avoiding monopolies.
"It really preserves access to quality homecare," he said.
The medical equipment system is more than just providing equipment, Thompson said, it's about providing valuable services, and the bill would save small businesses.
Altmire, of Pennsylvania's 4th Congressional District, said competitive bidding is an issue he has worked on since the idea came out.
There are many examples of when bidding programs make sense, Altmire said, but the medical equipment market is not one of them. The bidding program would form big national firms that would undercut local suppliers, Altmire said, adding that this would affect both the suppliers and the patients.
"That patient has to have that follow-up care," he said.
Altmire said he is hopeful the bill could be moved in an expedient way and keep suppliers from suffering economic consequences.
Lucy Spruill, director of public policy and community relations at United Cerebral Palsy of Pittsburgh, said she is a person with a lifelong disability and is a lifelong user of custom medical equipment.
With competitive bidding, there is no evidence that the bidders' track record and experience is checked, Spruill said.
"We're very concerned ... if (we) end up with a small number of inexpert bidders, we're going to consistently be getting equipment that isn't right for us," she said.
Another concern with the bidding program, Spruill said, is that only a small number of companies will be chosen. In Pittsburgh, two to three companies are approved for the Medicare business, she said.
This has "stunted" all the work being done by small to medium-sized companies in the area, Spruill said.
If the number of suppliers is drastically reduced, Spruill said, "that's going to make a very bad situation."
Georgie Blackburn, vice president of government relations and legislative affairs at BLACKBURN'S, said the impact of competitive bidding will be "financially devastating."
The bidding program would reduce the remainder of medical equipment providers, and the service component would be removed when patients have to order supplies over the Internet, Blackburn said. She said providers already compete on service, levels of training and response time, which all factor into the growth of the company.
Under the program, companies aren't bidding on the basis of identical products; they are bidding on which company is the cheapest, Blackburn said, which compromises quality.
"The bid process pushes providers to spin the roulette wheel," she said. "Imagine the chaos this system promotes."
Shirvinsky said nine out of 10 companies would be out of business under the bidding program, and patients would lose choices. Patients also would suffer loss of continuity of care as they switch providers, Shirvinsky said, which also could result in patient confusion.
"This is a particularly cruel program for Medicare's elders," he said.
Addressing a question from an attendee about HR 3790's position, Shirvinsky said it is stand-alone legislation as of now.
"We do have a full year before the program (competitive bidding) takes (full) effect," he said, explaining that now is the time to build up legislative support.
Thompson said there are around 70 co-sponsors at this time for the bill. As a stand-alone piece of legislation, the visions are clear and very transparent, he said.
The Pennsylvania Association of Medical Suppliers is a statewide organization that represents providers of home medical equipment and supplies. For more information, visit www.pamsonline.org.
