Competitive Bidding Should Lead to Medicare Discounts Beyond Prescriptions Drugs Prices
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While the new health care reform bill works to close the Medicare D donut hole for prescriptions drugs by 2020, the Centers for Medicare and Medicaid have moved forward with competitive bidding for medical equipment and supplies. So, beginning with the New Year, Medicare beneficiaries across nine standard metropolitan statistical areas (SMSA) will reap the benefits of discounts on drugs, along with savings from the competitive bidding program. Medicare savings from competitive bidding are expected to run about 28 percent of current medical equipment and supply prices.
Medicare Savings Beyond Prescriptions Drugs Prices Expected to Be in Billions Over Next 10 Years
The nine standard metropolitan areas in the first phase of the competitive bidding program include Cincinnati, Charlotte, Miami, Dallas, Cleveland, Kansas City, Riverside, Pittsburgh and Orlando. Nine products are included in the competitive bidding requirements: oxygen equipment and accessories, hospital beds, CPAP, BIPAP and accessories, wheelchairs and scooters, rehab power chairs, diabetes testing supplies, walkers and accessories, and enteral nutrition. The competitive bidding program across those regions and equipment has led to dramatic savings in future Medicare payments.
Medicare beneficiaries may have to change providers for their durable medical equipment and supplies. But the aggravation of changing providers is hoped to be made easier with the savings that will accrue to beneficiaries. For instance, in the Kansas City region, a hospital bed that would cost $127.12 per month this year will cost $89.95 per month in 2011; a Medicare savings of $29.82 and beneficiary savings of $7.45. In fact, beyond impending discounts on prescriptions drugs, competitive bidding is expected to save taxpayers $17 billion over ten years and $11 billion for patient savings; a total program savings of $28 billion over the next ten years.
