News in brief - Aug. 29, 2011

Equipment bidding will save Medicare $28 billion, CMS says

A second round of medical equipment competitive bidding is expected to save the Medicare program $28 billion over 10 years, the Centers for Medicare & Medicaid Services announced Aug. 19.

The program aims to increase competition between suppliers and control payment rates for medical equipment and supplies, such as walkers and power wheelchairs. CMS implemented bids for medical equipment in nine cities on Jan. 1. By July 1, 2013, new prices will be set for supplies in 91 metropolitan areas.

Bidding for round two was scheduled to begin in April, but CMS delayed the program as members of Congress and certain health care industry groups tried to end it altogether. Organizations representing medical suppliers have continued to lobby against the bidding process.

The program undermines quality of care and increases costs despite CMS' claims, said Tyler Wilson, president of the American Assn. for Homecare. "Because of this bidding program, beneficiaries will spend more time in expensive institutions, rather than in the far more cost-effective setting for care -- their own homes," he said.

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HHS awards $40 million in Medicaid/CHIP outreach grants

The Dept. of Health and Human Services on Aug. 18 awarded $40 million in grants to help state agencies and community organizations find and enroll children in Medicaid and the Children's Health Insurance Program.

The funding was awarded to organizations in 23 states. The two-year grants, ranging from $200,000 to $2.5 million, went to 39 state agencies, community health centers, school-based organizations and nonprofits. The money will benefit projects using technology to simplify Medicaid/CHIP enrollment and renewal, improve school-based outreach and enrollment, and retain existing enrollees, among other purposes. The grants were made available by the CHIP Reauthorization Act of 2009.

"The activities we are funding will help eligible children get covered, stay healthy and prepare them to succeed in school," said HHS Secretary Kathleen Sebelius.

This is the second round of CHIP reauthorization grants. HHS awarded the first $40 million in 2009. A list of the new grant recipients is available online (www.insurekidsnow.gov/professionals/outreach/get_covered_campaign/CHIPRA-Cycle-II-Grant-Summaries.pdf).

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Medicaid and CHIP enrolled more uninsured children in 2009

About 340,000 of the 4.7 million uninsured children -- nearly 8% -- who were eligible for Medicaid or the Children's Health Insurance Program enrolled in these programs in 2009, according to a report released Aug. 16 by the Robert Wood Johnson Foundation.

The report found that Medicaid and CHIP participation grew in 30 states in 2009, increasing the national participation rate to 85%, up from 82%. This increase happened despite a 2.5 million increase in the number of uninsured-but-eligible children between 2008 and 2009.

Medicaid and CHIP participation rates were above 90% in the District of Columbia and 15 states: Arkansas, Connecticut, Delaware, Hawaii, Illinois, Kentucky, Maine, Massachusetts, Michigan, Nebraska, New York, Rhode Island, Tennessee, Vermont and West Virginia.

However, six states had participation rates below 80%: Florida, Montana, Nevada, North Dakota, Texas and Utah. Nearly 40% of the remaining 4.3 million uninsured-but-eligible children live in California, Florida and Texas.

The report is available online (www.rwjf.org/files/research/20110816coveragegainsforkidsfull.pdf).

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Abortion services to end in 6 Arizona cities

Planned Parenthood Arizona announced Aug. 18 the discontinuation of abortion care in six cities because of recent state restrictions on the procedures.

The decision stems from a recent appellate court decision that upheld several 2009 laws on abortion, including a measure mandating that only physicians be allowed to perform surgical abortions. A woman also is required to see a doctor in person the day before getting an abortion to hear about abortion risks and alternatives.

Abortion care now will be provided at only three health centers in Arizona, two in the metro Phoenix area and one in Tucson, according to Planned Parenthood. Women will continue to receive cancer screenings, annual gynecological exams, sexually transmitted disease testing and birth control at all 13 of the organization's health centers in Arizona, said Bryan Howard, president and CEO of Planned Parenthood Arizona.

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