Homecare advocates say'competitive bidding'will put 90 percent out of business

Homecare providers are asking Congress to modify language in current legislation, otherwise many of the companies may be forced to go out of business, they say.

In a letter written to top legislators, one association notes that a "competitive bidding" provision in new health care reform legislation designed to lower costs and reduce fraud actually enables the government to "selectively contract" with a smaller number of providers, which they say will reduce competition and force 90 percent of member companies to close up shop.

"This is not the solution to Medicare's reform and it is certainly not the answer for patients and seniors," said Tyler J.

Homecare advocates say 'competitive bidding' will put 90 percent out of business Wilson, president of the American Association for Homecare. "This flawed regulation would wipe out small businesses across America and reduce quality and access to care for seniors and the disabled."

They argue that homecare represents only a small fraction of Medicare spending, has a low rate of expense increases, and can offer care at a fraction of the price of hospitalization, costing patients and Medicare providers only $8 per day for oxygen therapy.

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