The Competitive Bidding Relief Act of 2023 is a proposed law aimed at adjusting how Medicare pays for certain medical equipment. By blending old and new payment rates, it seeks to ensure that people who need items like wheelchairs and oxygen tanks can get them without delays or disruptions.
What This Bill Does
The Competitive Bidding Relief Act of 2023 makes changes to how Medicare pays for durable medical equipment, prosthetics, orthotics, and supplies (DMEPOS). Normally, Medicare uses a competitive bidding process to set prices for these items, which can lower costs but also lead to fewer suppliers. This bill proposes a temporary blended payment rate that combines 75% of the new, lower competitive bidding rate with 25% of the old, higher rate.
This blended rate is meant to last until December 31, 2024, and applies to areas that are not rural or isolated. The goal is to prevent sudden drops in payment rates that could force suppliers out of business, which would make it harder for people to get the medical equipment they need.
By keeping the blended rate, the bill aims to provide financial relief to suppliers, allowing them to stay in business and continue serving Medicare beneficiaries. This change is particularly important for suppliers in urban and suburban areas where the competitive bidding process hasn't fully stabilized the supply of medical equipment.
Why It Matters
This bill is important because it affects millions of Medicare beneficiaries who rely on medical equipment for their daily lives. For example, seniors and disabled adults who need wheelchairs or oxygen tanks could face fewer disruptions in getting these essential items. Without the blended rate, some suppliers might close, making it harder for people to find the equipment they need.
The bill also impacts small businesses that supply these medical items. Many of these businesses are family-owned and could face financial difficulties if the payment rates drop too low. By maintaining the blended rate, the bill helps these businesses stay afloat, which in turn supports local economies and jobs.
Key Facts
- Cost/Budget Impact: Similar prior extensions cost $150-250 million over one year.
- Timeline for Implementation: The blended rate would apply immediately upon signing through December 31, 2024.
- Number of People Affected: Over 10 million Medicare beneficiaries who use DMEPOS.
- Key Dates: Introduced on April 27, 2023; no further action noted by the end of the 118th Congress.
- Other Important Details: The bill is only two pages long and focuses on amending payment rates, showing a rare brevity in legislative proposals.
Arguments in Support
- Prevents supplier closures and service disruptions: The blended rate helps keep suppliers in business, ensuring that patients can access necessary medical equipment without traveling long distances.
- Ensures patient access in non-competitive areas: By extending relief to urban and suburban zones, the bill helps solve access gaps for Medicare's 10 million+ DMEPOS users.
- Supports small businesses and jobs: Many DMEPOS suppliers are small, family-owned businesses that would struggle under lower payment rates.
- Maintains care quality during transition: The blended rate acts as a bridge to full competitive bidding, preventing abrupt cuts that could lead to increased complaints and issues for beneficiaries.
- Cost-neutral for Medicare long-term: By preventing access barriers, the bill could reduce downstream costs like emergency room visits.
Arguments in Opposition
- Increases Medicare spending unnecessarily: Critics argue that extending the blended rate delays savings that could be achieved through competitive bidding.
- Undermines competitive bidding's goal of market efficiency: The bill could prop up inefficient suppliers, potentially raising costs for beneficiaries in the long run.
- Risks perpetuating industry reliance on subsidies: Opponents say it discourages suppliers from innovating or controlling costs.
- Disadvantages rural areas indirectly: The focus on nonrural areas might divert resources from rural suppliers who also need support.