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San Diego Competitive Bidding Injunction Could Set Precedence for Repealing Program
A decision last week could give hope to providers located within competitive bidding areas: San Diego Federal Judge Thomas Whelan ordered the injunction of Medicare's bidding program for clinical laboratories.
"The court made a wise decision. CMS' ill-conceived program would have compromised access to services for many Medicare recipients and put many great laboratories out of business," said Committee Chairwoman Nydia Velázquez in a news release.
The court's decision followed hearings last year by the House Committee on Small Business. The Congressional panel found the program's guidelines unreasonable and likely to cause irreparable harm to both patients and health care providers.
The ruling is subject to appeal by the U.S. Department of Health and Human Services, which means the program may still go forward.
The 19-page order granting motion for a preliminary junction concludes that: "For the foregoing reasons, the Court grants Plaintiffs' motion for a preliminary injunction (Doc. No. 15) and orders that Defendant Michael Leavitt, Secretary of the United States Department of Health and Human Services, his employees, his agents and other acting in concert with them, are enjoined from:
1. Announcing winners in the Medicare Clinical Laboratory Services Competitive Bidding Demonstration Project for the San Diego-Carlsbad-San Marcos Metropolitan Area;
2. Otherwise implementing and carrying out the Medicare Clinical Laboratory Services Competitive Bidding Demonstration Project for the San Diego-Carlsbad-San Marcos Metropolitan Area; and
3. Further disclosing any information included in the bid applications submitted in connection with the Medicare Clinical Laboratory Services Competitive Bidding Demonstration Project for the San Diego-Carlsbad-San Marcos Metropolitan Area."
"The law firm we are working with on potential competitive bidding challenges in the durable medical equipment program is reviewing the April 8 order," said AAHomecare President Tyler Wilson. "Obviously, this is of great interest to the home care community and we will determine how this affects our ability to challenge round one of competitive bidding."
