1. What would be your arguement as to whether or not competitive bidding will, in fact, provide long-term cost savings when Medicare patients are being limited to the use of the lowest bidders for durable medical equipment?
1. What would be your arguement as to whether or not competitive bidding will in fact provide long-term cost savings when Medicare patients are being limited to the use of the lowest bidders for durable medical equipment.
The use of competitive bidding in bidding for medical equipment and supplies could provide long-term cost savings with effective and pertinent oversight. The use of this method may provide cost savings by reducing the payments paid by Medicare giving suppliers an incentive to accept lower than market-value payments for the items and services bought and rendered with the caveat being they have the opportunity to retain the ability to serve beneficiaries potentially providing a larger market share for the providers. The use of competitive bidding allows the market to help CMS determine payment amounts (GAO, 2008).
The evidentiary argument is predicated in the already established savings emanating from CMS's demonstration of competitive bidding that illustrates Medicare saving $7.5 million and their beneficiaries 1.9 million without detrimentally affecting the access of beneficiaries. The projected savings for using this for Medicare lie within the ability of CMS to nullify costs that would be appropriated for suppliers that may not be stable, legitimate businesses by requiring under the competitive ...
Medicare issues for competitive bidding is examined.