Next year, average reimbursements for private Medicare Advantage plans will increase by 3.6 percent, the Centers for Medicare and Medicaid Services (CMS) announced on Monday. Last year’s increase averaged 3.5 percent. (Associated Press)
Approximately 22 percent of Medicare beneficiaries are enrolled in the private Medicare program.
In related Medicare news, the American Association for Homecare believes CMS should delay implementing a Medicare competitive bidding program for durable equipment. The group contends that hundreds of suppliers were improperly disqualified from participating because of errors made during the initial selection process. (Kaiser Network)
An excerpt:
CMS currently pays for durable medical equipment based on a listed price. Under the program, durable medical equipment companies will submit bids to CMS, which will select suppliers based on cost and volume or on the potential savings for Medicare beneficiaries. The 2003 Medicare law mandated the program as part of a larger effort to implement competitive bidding for CMS reimbursements. The program, scheduled to take effect on July 1, likely will result in an average 26% decrease in the prices of medical equipment in the 10 MSAs…
Acting CMS Administrator Kerry Weems said that the agency received more than 6,300 bids from medical equipment suppliers to participate in the program and will announce the winners of contracts by May. In addition, he said that small medical equipment suppliers, which CMS defines as suppliers with gross annual revenue of $3.5 million or less, accounted for 64% of those that won contracts.
