From wheelchairs and walkers to orthopedic shoes and needles, Medicare buys tens of thousands of products every day for elderly Americans. And as the single largest buyer of medical products, you'd think it would at leastget a volume discount.I'd hate to see the bills from my dad's illness this year. We had to rent oxygen services along with many other things that were probably greatly overpriced.
But it doesn't. In fact, Medicare doesn't even get the best price.
According to their own auditors, Medicare knowingly overpays for almost everything it buys. Examples include:
-- $7,215 to rent an oxygen concentrator, when the purchase price is $600.
-- $4,018 for a standard wheelchair, while the private sector pays $1,048.
-- $1,825 for a hospital bed, compared to an Internet price of $1,071.
-- $3,335 for a respiratory pump, versus an advertised price of $1,987.
-- $82 for a diabetic supply kit, instead of a $47 price on the Web.
Last year, the Health and Human Services Department tried to replace its archaic fixed-price fee schedule for 10 commonly purchased products with a competitive bidding program in 10 cities. The department said the program could save Medicare $125 million in a single year, or $1 billion if adopted nationwide. But Congress stepped in to stop it.
"There were products that we had as much as 75 percent savings. The average was 29 percent," said Mike Leavitt, the former HHS secretary who oversaw the program.
"It would have saved billions if we could've actually implemented it, but Congress deferred it. In Washington speak, that means we put it off forever," he said.
Leavitt blames Congressmen Pete Stark (D-Calif.) and Dave Camp (R-Mich.) for introducing legislation that terminated the contracts and postponed the program for 18 months. Leavitt says the congressional intervention helps explain why many are suspicious of claims that Washington can cut enough waste to actually pay for health care reform, as President Obama told a joint session of Congress last month.
It boggles my mind that anyone would think saving money on Medicare purchases would be a bad idea, but with some of the ninnies we have in Congress, the chances that Obamacare could be cost effective are exactly nil.
2 comments:
I think we also need to put the blame on the DME companies. They bill so much for equipment, and for so long.
One of the fixes could be an oversight committee on the charges and the allowables. Of course, once you get a committee, who knows what will happen.
Where are the smart people out there? Why aren't they being sought after?
Linda, if smart people were recruited, they would quickly find out where the bodies are buried, and no one in Washington wants that.
The reason no one in Washington wants to try to make Medicare more efficient, is because that's NOT the ultimate goal. These DC blighters want to scuttle all of our current health care so they can control everything. And that kind of control won't make it better, but again that is not the ultimate goal, it's control of the public: they will decide who lives and who dies.
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