S. 2951: Competitive Bidding Relief Act

The Competitive Bidding Relief Act aims to modify how Medicare pays for certain items of durable medical equipment (DME) under the competitive bidding program. This bill introduces changes in the payment structure for specific items and services provided in areas that are not classified as rural or noncontiguous until the end of 2025. Here are the main components of the bill:

Key Provisions

• Transition Rule Application: The bill directs the Secretary of Health and Human Services to apply a specific transition rule to all applicable DME items and services in non-rural and contiguous areas until December 31, 2025. This means that the payment rates will not be adjusted downward as previously planned under the competitive bidding program during this time frame.
• Delay in Payment Rate Changes: The bill prohibits the Secretary from implementing a related payment change to DME items until January 1, 2026. This effectively postpones any potential price reductions that could have occurred under current rules following the competitive bidding process.
• Implementation Authority: The Secretary has the authority to enact these changes through program instruction, independent of other laws, which may facilitate a quicker transition to the new payment structure.

Impact on Areas

The provisions specifically target areas that are deemed non-rural and contiguous, which typically encompass urban and suburban communities. By extending the current payment rates in these areas, the legislation aims to maintain support for suppliers of durable medical equipment and the patients who rely on such equipment for their health needs.

Duration of Changes

The changes proposed in this bill will be in effect until December 31, 2025, after which new payment guidelines are anticipated to take effect starting January 1, 2026.

Rationale

The intent behind the Competitive Bidding Relief Act is likely to address concerns regarding access to durable medical equipment and the financial stability of suppliers in areas with more competitive market structures. By providing relief from immediate pricing pressures, the bill aims to ensure continuous availability of DME for patients requiring these essential items.

Relevant Companies

• PDCO - Patterson Companies Inc.: This company provides various medical products and services. Changes to Medicare reimbursement rates could affect their sales performance in the durable medical equipment sector.
• XLNX - Xilinx Inc.: Xilinx is involved in providing DME technology; potential changes in Medicare coverage could impact their product adoption and sales.