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Re: [IP] About Competitive Bidders

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Sent from my iPhone

On May 31, 2013, at 7:52 PM, Stacey Martin <email @ redacted> wrote:

> Where is this from?
> Stacey
> Sent from my iPad
> On May 31, 2013, at 16:34, Phyllis Abram <email @ redacted> wrote:
>> I. CMS has awarded DMEPOS exclusive contracts to bidders that SUBMITTED
>> FRAUDULENT BIDS that did not meet CMS' published rules for licensure,
>> accreditation, and/or certification in the state and/or specific product
>> category by
>> the May 1, 2012 bid window deadline. Any bidder which was not licensed or
>> accredited for a specific produced category should have been eliminated from
>> the bidding. Yet the facts are that:
>> -- 33 bid winners do not hold a valid DME license in the state of Tennessee
>> and so are fraudulent bidders.
>> -- 68 out of 138 unique bid winners in the State of Maryland do not hold the
>> necessary Maryland Residential Service Agency (RSA) license and so are
>> fraudulent bids.
>> -- 58 of the contracts in the six Ohio bid areas are held by firms that are
>> not appropriately licensed to provide items in Ohio, and are likewise
>> fraudulent bids.
 >> -- 31 of the 105 companies awarded contracts in Texas were not licensed
>> Texas law as required and so are fraudulent bidders.
>> -- and each week brings new evidence of additional unqualified companies
>> - Medicarebs published RFB stated "Bids will be disqualified if a bidder
>> does not meet all state licensure requirements for the applicable product
>> categories and for every state in a CBA." If CMS fails to disqualify such
>> fraudulent bid winners, they penalize the many suppliers that followed the
>> rules and bid honestly, many of whom would have bid on new areas if they had
>> known that they didn't have to invest the time and money to be licensed
> before
>> bidding. Fraud is fraud, whether payment or contracting, and ignoring it
> sends
>> a dangerous message!.
>> -- Use of the bids submitted by unlicensed bidders to which CMS incorrectly
>> awarded contracts cannot be used in calculating the Single Payment Amounts
>> (SPA) because they were illegal. Fraudulent bidding cannot be condoned nor
>> allowed to influence price setting.
>> -- CMS helping these winners to get licensed now is wrong. It is likely that
>> many other bidders were disqualified for lesser problems and are not getting
>> this bspecialb help to succeed, and others would have bid differently if
>> the rules had been different for all!
>> W NLJ 258483 v3 2917952-000001 05/30/2013
>> II. Equally serious are the lack of financial standards for companies
>> promising huge expansions of services to these medically needy Medicare
>> beneficiaries.
>> -- There are big bwinners" currently serving few patients and with a very
 >> modest revenue stream, but which have been awarded scores, and even
>> of contracts. One example of many: NUTRI USA provides Enteral Nutrients to
 >> about 18 patients, had revenues of $24,000 for a full year and was awarded
>> contracts nationwide for Enteral Nutrients.
>> -- There is simply no way NUTRI USA, or many others, could pass any rational
>> financial standards test that would demonstrate the financial and
>> infrastructure capabilities to very rapidly expand (over 8,000%!!! in a few
>> months) to serve the seniors and disabled in the vast geographic areas for
>> which they were awarded contracts.
>> -- There are many winners which will have to expand several thousands of
>> percent on July 1st to fulfill their responsibilities to Medicare
>> beneficiaries. IMPOSSIBLE!
>> -- Not only were there no financial standards bidders had to meet to prove
>> their ability to expand, but CMS' bidding system itself transfers the value
> of
>> bids from serving seniors to selling bids. No intent necessary to serve
>> seniors...JUST BID AND RUN!
>> -- How do the strategies, DRIVEN BY THE CMS BIDDING STRUCTURE, serve the
>> seniors and disabled who are particularly needy?
>> The bsmartb thing to do to compete in this game of irrational bids and
>> extraordinary price cuts is to bid low, win as many bids as possible, and
> sell
 >> them at as high a price as possible! If you can't sell, just hold, as you
>> not required to serve anyone. Eventually the market will crash, the price
> goes
>> up, and you can sell, if you haven't gone broke! It's happening just as the
>> experts predicted, and Cal Tech proved, driven by CMS' flawed design.
>> In Round 2 the talk on the street is all about such strategies! 11 of the 15
>> announced winners in the nationwide competition for mail order diabetic
>> supplies had no plans to serve! Other winners in every category quietly say
>> the same. Some talk of how to serve only those needing the cheapest supplies
 >> with costs below the median...or just one's old customers! WHO LOSES when
>> focus becomes how to exit with your shirt? SICK AND NEEDY SENIORS unable to
>> find a new supplier! Co-pays become self-pay!
>> III. Lastly is Round 2's reliance on remote suppliers.
>> -- The evidence is unequivocal from the Round 1 Rebid: REMOTE
>> (out-of-area/out-of-state) WINNERS DO NOT PERFORM! But in Round 1only 10% of
>> the winners were remote.
>> -- Round 2 removes 90% of the local suppliers right off the top! Then 50% of
>> the CMS- selected suppliers don't serve because they are remote! CHOICE?
>> QUALITY? ACCESS? Frail and needy seniors lose. Jobs are lost in your towns.
>> WHY???? Is this American?
>> W NLJ 258483 v3 2917952-000001 05/30/2013
>> Sent from my iPhone
>> Phyllis
>> .
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> .
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