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Competitive Bidding by Lynn Fang, Jul 7, 2008 (8:44pm)
This bill reduces the negative effects of competitive bidding, a policy that has been in effect for acquisition of durable medical equipment since the Medicare Modernization Act of 2003. Competitive bidding essentially means the patient or buyer receives offers from various durable medical equipment (DME) suppliers for competitively priced DME. This keeps prices low, but may harm small businesses. In order to ensure a more fair competition among DME supply businesses, this bill includes authorization for the Center for Medicare & Medicaid Services (CMS) to implement quality standards to ensure winning bidders meet applicable quality standards, and also directs CMS to study bidding effects in 10 sites before expanding the bidding program elsewhere. While competitive bidding is very beneficial to the buyer, it may help small businesses to implement this type of policy.

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