Why the Competitive Bidding Program is FLAWED.

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Riddle me this, Batman…

If I’m a Durable Medical Equipment supplier and I want to bid on the diabetes testing supplies mail-order market, should I be allowed to do so if there are allegations that I violated the federal False Claims Act by using a fictitious entity to make unsolicited telephone calls to Medicare beneficiaries in order to sell them durable medical equipment?

Short answer:

Yep.

What?

On July 1, 2016, ten durable medical equipment suppliers were awarded two-year contracts for diabetes testing supplies, because they were willing to accept a reimbursement rate of $8.32 for a box of 50 test strips. One of them was U.S. Healthcare Supply, LLC. as shown on the list of approved suppliers today. 

Except…. on September 7, 2016, the Department of Justice issued this statement.

Diabetic Medical Equipment Companies to Pay More Than $12 Million to Resolve False Claims Act Allegations

U.S. Healthcare Supply LLC and Oxford Diabetic Supply Inc. and the two owners and presidents of those companies have agreed to pay the United States more than $12.2 million to resolve allegations that they violated the federal False Claims Act by using a fictitious entity to make unsolicited telephone calls to Medicare beneficiaries in order to sell them durable medical equipment, the U.S. Department of Justice announced.  U.S. Healthcare Supply LLC, based in Milford, New Jersey, has agreed to pay more than $5 million, and Jon P. Letko, its owner and president, has agreed to pay more than $1 million.  His brother, Edward J. Letko, the owner and president of Oxford Diabetic Supply Inc., a medical equipment supplier that allegedly also participated in the scheme, has agreed to pay $6 million plus interest.

The companies cold-called Medicare beneficiaries and sold them diabetes supplies – violating the non-solicitation policy set by the government.

Still Listed?

We called U.S. Healthcare Supply, because they are STILL LISTED ON MEDICARE.GOV as an approved diabetes testing supplies provider. The poor representative stumbled over the answer, saying that they were no longer offering supplies for diabetes.

Riddle me this, Batman…. if the Department of Justice says they can’t sell, why is U.S. Healthcare Supply LLC still up on Medicare. gov? Let’s be real… it doesn’t take much to remove a link on the Internet. What else could be wrong with the Competitive Bidding Program? What other misinformation is being given to the public?

Someone put up a Bat Signal…

Wait.

We have one. 

 

Learn more about why the Competitive Bidding Program for diabetes testing supplies can’t continue and act now.