Anatomy of a Failed “Auction” for Medicare Supplies

Today the Centers for Medicare and Medicaid Services (CMS) set arbitrary prices for Medicare Durable Medical Equipment (DME) supplies based on CMS’ flawed bidding process. It was not the¬ bidders¬ who set the prices, but¬ CMS¬ through its arbitrary manipulation of the quantities associated with each bidder. CMS was able to pick . . . → Read More: Anatomy of a Failed “Auction” for Medicare Supplies

Market Design word cloud

 

 

I created the following “Market Design” word cloud with a Google Scholar search “auction OR matching OR ‘market design’”. Then I eliminated words without content like the, or, and. The font size is proportional to the square-root of the word frequency. I used this as the Community Picture for the newly formed . . . → Read More: Market Design word cloud

Update on Applicant Auction Conference

Dear Applicants and other Stakeholders, If you are coming to Los Angeles for ICANN’s Prioritization Draw on December 17, I recommend that you stay another day and attend the Applicant Auction Conference at the nearby Marriott Santa Monica (a 20 minute taxi ride) on December 18. The all day conference (8:30 am to 5 . . . → Read More: Update on Applicant Auction Conference

Medicare auction gets failing grade at Congressional hearing

After working over two years to reform the Medicare auctions for home medical equipment (supplies like oxygen and diabetes test strips), I was finally given the opportunity to testify before Congress on the matter. Below are links to my testimony, transcript, video, and further comments:

‚ÄúMedicare Auction Reform,‚Ä̬ Testimony of Peter Cramton before the . . . → Read More: Medicare auction gets failing grade at Congressional hearing

Medicare auctions update: video and legislation

Here is a quick update on the Medicare auctions.

You may recall that one month ago on June 17, President Obama received a¬ letter from 244 concerned auction experts¬ on the Medicare competitive bidding program for durable medical equipment, pointing out the fatal flaws in the Medicare auctions.

Since that time, I and others . . . → Read More: Medicare auctions update: video and legislation

Congressional briefing on Medicare auctions identifies fatal flaws

On 24 May 2011, a Medicare competitive bidding update was presented to Congress. The event organized by Congresswoman Nancy Johnson and Professor Peter Cramton included a diverse and talented panel of experts: Peter Cramton, Professor of Economics, University of Maryland; Tom Milam, Member, Program Advisory and Oversight Committee (PAOC), Former COO, AmMed Direct; Barbara . . . → Read More: Congressional briefing on Medicare auctions identifies fatal flaws

Congressional briefing on incentive auctions to re-purpose TV spectrum

On 23 May 2011, a Congressional briefing,¬†“Spectrum Incentive Auctions: the Nuts, Bolts and Economics,” hosted by the Technology Policy Institute, focused on the economics of auctions and how spectrum incentive auctions should be structured to provide the most efficient outcomes for stakeholders.

The FCC and the Administration want to make 120 MHz of spectrum currently used for broadcast available for other, presumably higher-value, wireless uses.  Policymakers are proposing using voluntary auctions to encourage broadcasters to sell their licenses, but questions remain on how these incentive auctions would work in practice. The panelists and the presentations (in order of presentation) were:

  • Scott Wallsten, Vice President for Research, Technology Policy Institute (moderator)
  • Evan Kwerel, Senior Economic Advisor, Federal Communications Commission¬†[Presentation]
  • Peter Cramton, Professor of Economics, University of Maryland¬†[Presentation, pptx with animation]
  • Karen Wrege, Senior Auction Consultant, Power Auctions LLC¬†[Presentation]
  • Lawrence Ausubel, Professor of Economics, University of Maryland [Presentation]

The event was well-covered in the trade press. Some examples are given below:

Continue reading Congressional briefing on incentive auctions to re-purpose TV spectrum

Congressional briefing on Medicare auction program

I wish to announce an important event on the Hill on Tuesday, discussing the Medicare DME Competitive Bidding Program:

Competitive Bidding Congressional Update‚ÄĒWhat You Need to Know, 11-12:30, 24 May 2011, 1539 Longworth House Office Building, sponsored by U.S. Representative Sue Myrick (R-NC).

The event is organized by former Congresswoman Nancy Johnson and myself, . . . → Read More: Congressional briefing on Medicare auction program

PAOC meeting on Medicare competitive bidding: The train wreck hasn’t happened yet

Program Advisory and Oversight Committee (PAOC)

Dear PAOC Members:

On 5 April 2011, you met at CMS headquarters in Baltimore to examine the status of the Medicare competitive bidding program. I was grateful that the meeting was open to the public and that I had an opportunity to meet many of you. I . . . → Read More: PAOC meeting on Medicare competitive bidding: The train wreck hasn’t happened yet

Medicare auction update: It still needs to be fixed!

On 1 April 2011, 110 stakeholders in the Medicare Durable Medical Equipment (DME) industry came to the University of Maryland to discuss how the CMS‚Äô current competitive bidding program could be improved. The participants included Medicare providers, government leaders, and auction experts. A major part of the event was the conduct of a mock . . . → Read More: Medicare auction update: It still needs to be fixed!

New trends in mechanism design

5-9 September 2011

Copenhagen Business School Denmark

Workshop and Summer School organized by CFEM, Center for Research in the Foundations of Electronic Markets

New Trends in Mechanism Design will bring together researchers from economics and computer science working on the design and analysis of economic mechanisms and on applications of such mechanism to solve . . . → Read More: New trends in mechanism design

Carbon market design conference

Carbon policy is an important market design problem that has been put off for too long. On 31 January-1 February there will be a two-day conference in Washington on Carbon Market Design: Issues and Opportunities.¬ The conference is open to the public, but registration is required and space is limited. This should be an . . . → Read More: Carbon market design conference

Other market design blogs

There are several active blogs on market design. Two of the best are:

1. Al Roth’s (together with Peter Coles’) Market Design blog. This blog started in 2008. It is especially strong on matching market applications, such as kidney exchanges, school choice, and hospital-medical-student matching.

2. Noam Nisan’s Algorithmic Game-Theory/Economics blog. This blog started . . . → Read More: Other market design blogs

Alfred Kahn, market designer extraordinaire

alfred-kahn

Alfred Kahn died on Monday, 27 December 2010, in his Ithaca home at the age of 93. Fred lived a wonderful life and contributed enormously to society and all those who knew him. As a market design he was a pioneer. It takes a special person to be named chairman of an organization, the . . . → Read More: Alfred Kahn, market designer extraordinaire

Welcome!

cramton-in-office

Welcome to the market design blog on cramton.umd.edu. This blog features news and discussions on market design topics. It will take through the New Year for me to beginning adding much content to this blog, so please be patient.

I welcome your comments and interest.

Peter Cramton