Essay on "Appease the Allegation That Medical"

Essay 3 pages (1253 words) Sources: 3

[EXCERPT] . . . .

's request for a temporary restraining order preventing U.S.Department of Health and Human Services Secretary Kathleen Sebelius from implementing the second round of the Medicare Durable Medical Equipment, Prosthetics, Orthotics and Supplies Competitive Bidding Program, saying the plaintiffs failed to show that they would be irreparably harmed by the program expansion" (Teichert, 2013, p. xx-xx). The case sheds light to the inability for companies to find qualified bidders and their reluctance to accept the new regulations.

Although the ruling sided against the company, along with previous attempts of having the program stalled, the program faces increased opposition from government officials. Recently, lawmakers have put in a request for an HHS inspector general investigation.. Critics of the bidding program state the limitation of which companies are allowed to provide products and services gives CMS the power to arbitrarily choose low prices decreasing the chances winning bidders can/will supply the products and services. As Pittman (2013) states several efforts were made to halt or stall the program: "Previous lobbying efforts by the device industry stalled the program. Round one was to start in 2008, but Congress halted it after only 2 weeks. Rep. Tom Price, MD, (R-Ga.) has sponsored a bipartisan bill (H.R. 1717) with 150 co-signers that would halt Round two" (Pittman, 2013, p. xx-xx).

So where does the source of ineffective Medicare policies originate from? Over the past twenty-five years the MA program pursued expansion of Medicare beneficiaries' choices including private plans and attempts to save Medicare money. Though they have tried to formulate policies that would
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help achieve their goals, the policies have resulted in failures, an example being the 2003 Medicare Modernization Act. The Medicare Modernization Act (MMA) enabled MA plans to get generously paid, resulting in: "expanded choice and enrollment (achieving the first goal), but costing Medicare more money than TM, an estimated $14 billion more in 2009 (and thus failing on the second goal)" (McGuire, Newhouse, & Sinaiko, 2010, p. xx-xx) .

The first in a series of failed policies began in 1972 where Congress first authorized capitation payments for services covered under Parts A and B. Although Congress enacted this policy, no action was taken until 1976. And that was only because Medicare initiated field demonstration projects that contracted with HMOs to provide care for Medicare beneficiaries in exchange for prospective payments. "In the 1970s and early 1980s these demonstration HMOs provided some of the first evidence of managed care's potential savings by reducing the number of Medicare beneficiaries' inpatient hospitalizations by 8% over two years." (McGuire, Newhouse, & Sinaiko, 2010, p. xx-xx) . In 1985, after successful runs of demonstration projects, private plans that took risk-based capitation payments shifted from demonstration status to regular status within the Medicare program.

To conclude there are many regulatory concerns related to health care. Several laws and policies have been enacted that not only causes turmoil within the healthcare industry, but also to non-compliance and over regulation. As it pertains specifically to the Medicare bidding program, more and more opponents emerge due to the increasing decline rate of companies during product and supply bids. Over the past quarter century, various modifications in program rules, plan payments, and other incentives have not only affected participation in the Medicare program but also compliance. More research is needed on ways to improve policy creation.

References

Ellig, J. (2012, March 27). Healthcare Law Highlights Problems With Regulatory Process - Economic Intelligence (usnews.com). Retrieved from http://www.usnews.com/opinion/blogs/economic-intelligence/2012/03/27/healthcare-law-highlights-problems-with-regulatory-process

McGuire, T., Newhouse, J., & Sinaiko, A. (2010). An Economic History of Medicare Part C.Milbank Q, 89(2), 289-332.

Mekel, M. (2010). Emerging Issues in Health Care Regulation: Protecting Patients or Punishing Providers? Journal of Legal Medicine. doi:10.1080/01947641003598138

Pittman, D. (2013, August 26). Medicare's DME… READ MORE

Quoted Instructions for "Appease the Allegation That Medical" Assignment:

Find an article or a current legal case that involves; A critical regulatory issue in health care. Write a 825 word analysis of the article or the legal case that explains how the issue realates to the nature, sources, and function of the law. Ensure you explain how the issue realates to the nature, sources and funtion of the law, provide an introduction, provide recent Congressional action,provide explation on function of the law, provide analysis of the issue and conclusion.

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