Monterey, CA : Medicare Finds A Way To Save Money On Medical Equipment

by Richard Kuehn on 04/21/12

Monterey, CA : Medicare Finds A Way To Save Money On Medical Equipment :  View From A Non-Profit Serving Carmel, Carmel Valley, Carmel-by-the-Sea, Gonzalez, Greenfield, King City, Marina, Monterey, Pacific Grove, Pebble Beach, Salinas, Seaside And Soledad California

The headline on the front page of USA Today said Medicare bid plan saves $202 million.  But the real story was that a new pilot program which required competitive bidding by medical equipment suppliers rather than paying them via a Medicare fee schedule saved the end user 42% on their co-pay.  Hooray, costs are going up for seniors in so many places it was nice to see a story about the government saving money for both their own budget and for seniors.  The Centers for Medicare and Medicaid Services predict that the program, if expanded across the country, could save $17.1 billion over the next ten years for senior citizens and adults with disability, as well as $25.7 billion for the government.  President Obama's health care reform law requires competitive bidding rates to be mandatory across the company by 2015.   Not surprisingly, the durable medical equipment providers have lobbied against the process.  But with numbers like this, it seems like a no-brainer.