The American Association for Homecare filed a lawsuit against HHS on Wednesday in an effort to prevent the July 1implementation of Round 2 of CMS’s Competitive Bidding Program for Durable Medical Equipment, Prosthetics, Orthotics and Supplies, according to a news release.
The suit, which was filed in partnership with Home Mediservice, a home DME supplier in Havre de Grace, Md., claims that Medicare violated its own rules for its DME bidding program by granting bids to unlicensed suppliers. According to the complaint, a significant number of contract suppliers in Tennessee and Maryland are unlicensed.
The complaint seeks “to require the secretary to redetermine successful bidders, and recalculate the payment amount, in every state where the secretary accepted bids from unlicensed bidders, after eliminating all contracts and bids from unlicensed bidders,” according to the release.
This lawsuit follows a June 12 congressional request that CMS delay Round 2 bidding through the end of 2013.
