05/19/08 - Unlicensed Bid Winners, Members Teleconference

Posted by: Rob Brant in News Anounces

AMEPA will be holding a Teleconference on May 28, at 2pm EST.
The teleconference will address issues regarding our Legal and Legislative efforts to FIGHT the Competitive Bidding Program.

This is a very important conference, featuring our Attorney Javier Talamo, and Industry experts who have been working feverishly on your behalf. Members may request the Teleconference Phone Number and Meeting number at info@amepa.us. You may also go to our web site www.AMEPA.us to get information about the Teleconference and to get updates. Additional information will be released a few days before the Teleconference and Members will have an opportunity to email questions during the Teleconference 


Many alledgedly Unlicensed Companies awarded Bids
Just in time for the AA HomeCare "Washington Fly In", Medicare gave Home Medical Equipment Advocates more ammunition in the battle to stop the Competitive Bidding Program.
Medicare announced the names of the Bid Winners for the first 10 Competitive Bidding Areas. The first line in the "Rules For Bid" still reads that "All Suppliers must...meet any local or State licensure requirements, if any for the license being bid." According to today's records from Florida's Department of Health website 8 of the 44 Oxygen Bid Winners in the Miami Competitive Bidding Area (CBA) are not licensed by the State as MEDICAL OXYGEN RETAILERS. That is nearly 20% of the Bid Winners that not only won the bid but whose numbers had an effect on the overall bid price. Four of the eight Bid Winners are from out of state. Three other Bid Winners are not on the website but they are pharmacies and are exempt from having the Oxygen License.
You can review the companies by searching the "Profession" Field and scrolling Down untill you find the "Medical Oxygen Retailers"
Similar rules apply in Ohio as Oxygen Providers must be Licensed by the State of Ohio's Respiratory Care Board. North Carolina requires licensure form Board of Pharmacy's Device and Medical Equipment Dispensing Permit. Texas has a license for Oxygen as well from the Department of Health & Human Services. Each of the Competitive Bidding Areas in those states have Bid Winners that most likely do not have proper licensure. In the state of Florida it typically takes 9 months to get a license once you have an established physical location.
Subcontracting may not be an option for Bid Winners

In Orlando 15 of the 39 (38%) of the listed Oxygen Bid Winners are located either out of state or at least an hour from the border of the CBA. It is puzzling, how these companies won the bid because Supplier Standards make it almost impossible to Subcontract for Oxygen services. According to the Palmetto GBA Website:
The Centers for Medicare and Medicaid Services (CMS) interprets 1834 (j) (1) of the Social Security Act to mean the supplier receiving payment from Medicare must be the entity furnishing and billing for the items/services. Specifically, a supplier may not contract with other entities to provide essential services.

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