New Medicare Equipment Program

(from: Steve Fogarty | The Chronicle-Telegram)

Invacare is among the companies that oppose a new Medicare program aimed to lower Medicare payments on long-term medical equipment and supplies.

The program, to begin July 1, will use a competitive bidding process by which Medicare will set and pay lower prices to qualified suppliers of equipment such as hospital beds, power wheelchairs and oxygen.

The U.S. Department of Health and Human Services estimates the program will save taxpayers about $1 billion a year, but an official of Invacare Corp., the Elyria-based maker of medial equipment ranging from sophisticated power wheelchairs to canes and walkers, begs to differ.

The program, said Cara Bachenheimer, the company’s vice president of government relations, said the program is “ill-conceived and heavy-handed” and seriously will impact “consumers’ ability to access quality home medical items.”

“They’re touting cost savings, but there’s a lot to be said that you get what you pay for,” Bachenheimer said.

The Washington-based official spoke by phone early Thursday, prior to meetings concerning a proposed measure that would delay the program’s launch.

“We’re aggressively working on legislative efforts to delay implementation by 18 to 24 months, with the ultimate goal of getting rid of it altogether,” she said.

Bachenheimer hopes the program is replaced by something fairer.

“We’re on the path to that now. Both the House and Senate have put out documents in the last two days indicating support for such a bill,” she said.

Employing about 6,200 workers globally, of which some 1,500 are in Lorain County, Invacare eliminated 225 jobs at its Taylor Street plant while sending production of low-end products such as canes, crutches, walkers and standard wheelchairs to China and Mexico in 2006.

Company officials said the changes were needed in the face of tougher competition from low-cost imports coupled with ongoing cuts in Medicare and Medicaid reimbursements.

If the program isn’t derailed, the plan calls for medical equipment and supply firms to submit bids, which Medicare will use to set a uniform price for items based on economics in each of the 10 regions.

A 2007 Centers for Medicare and Medicaid Services study indicated that Medicare is paying from two to five times — or $1,000 to nearly $2,000 more — than the average price available on the Internet for items including oxygen concentrators, standard power wheelchairs, hospital beds and devices that aid people with breathing problems caused by such conditions as sleep apnea.

Bids are not submitted by manufacturers such as Invacare, but by equipment and supply companies that are Invacare’s customers, Bachenheimer said.

Northeast Ohio is among 10 regions nationally chosen to get the program first, based in part on population and numbers of medical equipment and supply providers. The Ohio region encompasses Lorain, Cuyahoga, Medina, Lake and Geauga counties, as well as portions of Erie, -Huron, Ashland and Wayne counties.

“The goal here is to have competition to drive down costs,” said Peter Leonis of the Chicago offices of the Department of Health and Human Services’ Centers for Medicare and Medicaid Services. “It’s hard to justify the way the program used to operate when you could go to the Internet and get wheelchairs or beds for one-third the price.”

“If a wheelchair costs $1,000 now, you pay $200, but if the price is driven down to $800, you’ll see the savings from that,” Leonis said.

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