The market works!

In 2011, CMS created a demonstration to have competitive bidding for durable medical equipment (DME).   Prior to the implementation of this program, CMS used an administrative fee schedule, similar to how physicians are currently reimbursed.  How did this market-based solution fare?  A paper by Newman, Barrette, and McGraves-Lloyd (2017) answers this question. We compared…

Free Market Medicare? Competitive Bidding for Durable Medical Equipment

Government spending on wasteful projects is legendary.  There is the Bridge to Nowhere, Star Wars, and many more.  In Medicare, the government also has a reputation of overpaying for durable medical equipment.  For instance, critics claim that Medicare is both paying too high a price for motorized wheelchairs and buying wheelchairs for people who do not…

Is Medicare moving towards rationing your medical equipment?

Currently, Medicare fee-for-service (FFS) beneficiaries receive significantly more choice than standard commercial plans.  They can choose any provider they wish (who accepts Medicare).  There are no cost-sharing differences between in-network and out-of-network doctors (because there is no ‘in-network’ for Medicare).  Although certain Part D prescription drug plans require prior authorization for specific drugs, few services…