Competitive bidding saves Medicare $202 million
A report issued by Health and Human Services Secretary Kathleen Sebelius credits the Medicare competitive bidding program for saving people on Medicare $202 million on durable medical equipment (DME), translating to a 42 percent cost reduction.
As the program expands, the savings could reach up to $42.8 billion dollars over the next 10 years under the Affordable Care Act, the Centers for Medicare & Medicaid Services (CMS) said in a release.
CMS noted that seniors and disabled Americans covered by Medicare will save a projected $17.1 billion due to lower co-insurance for DME and lower premiums for Medicare during the next decade.
The ACA will expand the DME bidding program from 70 to 91 metropolitan statistical areas nationwide, and CMS expects all areas in the country to benefit from either lower rates or the competitive bidding program by 2016.
Topics: Accountable Care Organizations (ACOs)