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 have had discussions with both the administration and Congressional staff to make progress on the logical next step: repeal and reform of the existing program.
Today I have posted a short 12-minute video “Medicare Auction Reform,” which describes the problems and provides a solution from leading experts. I encourage you to watch it.
I have also posted an outline of “Repeal and Reform Legislation for Medicare DME Auctions,” [pptx].
To avoid program failure, the flawed Medicare auctions must be replaced with modern efficient auctions, which yield sustainable competitive market prices.
Reform of the auctions will bring benefits to all. Medicare beneficiaries benefit from receiving the quality goods and services they need, Medicare providers benefit from being paid sustainable competitive prices for the quality goods and services they deliver, taxpayers benefit by paying the least-cost sustainable prices for these products, and CMS, the administering agency, benefits from the numerous efficiencies that result from conducting an effective program, largely free of complaint, fraud, and corruption.
For further information on the Medicare auctions see www.cramton.umd.edu/papers/
Thank you for your interest.