Back to health care, interesting editorial:
USA TODAY
In 2010, Medicare spent more than $14 billion on oxygen devices, mobility
scooters, diabetes test strips and other "durable medical equipment" and supplies
that patients use at home. For taxpayers, and for beneficiaries with a 20% co-
pay, that was about $5 billion too much.
Everyone overpaid because for years, Medicare bought or rented things like this
on a fee schedule set by Congress, for prices that had nothing to do with normal
market competition.
Now a competitive bidding process is starting to produce big savings and has the
potential to cut costs even more — unless the industry and its allies in Congress
manage to derail it.
The bidding program, passed in 2003, finally went into effect in nine metro areas
in 2011. It will expand to 91 more this summer. The bids confirm that the old
system wasted shocking amounts of money, and still wastes it in areas where
bidding hasn't yet begun.
Not surprisingly, an industry that's seeing its profit margins fall dramatically is
fighting hard to change or roll back the bidding program. The American
Association for Homecare, the industry's trade group, and large equipment
providers such as the VGM Group have mounted an assault that combines
political contributions, lobbying and a broad effort to discredit the way Medicare
has run its bidding system.
But a move in the House
to dump and overhaul the bid process has almost 200 co-sponsors and is led by
Tea Party favorites such as Reps. Tom Price, R-Ga., and Renee Ellmers, R-N.C.,
both of whom have suppliers in their districts.