Traverse City Record-Eagle

Life

June 22, 2013

Cost-saving changes coming

WASHINGTON (AP) — Medicare begins a major change next month that could save older diabetics money and time when they buy crucial supplies to test their blood sugar — but it also may cause some confusion as patients figure out the new system.

On July 1, Medicare opens a national mail-order program that will dramatically drop the prices the government pays for those products but patients will have to use designated suppliers. The goal is to save taxpayers money but seniors should see their copays drop, too.

Don’t care about the convenience of mail delivery? Just over half of the 4.2 million diabetics with traditional Medicare coverage used mail-order last year, but starting July 1 beneficiaries also can get the new lower price at drugstores enrolled in the Medicare program.

“Those who like the face-to-face interaction with the pharmacist have that choice,” stressed Jonathan Blum, Medicare deputy administrator. “We want to preserve both options.”

It’s the biggest expansion yet of a larger, and somewhat controversial, initiative that’s predicted to save taxpayers nearly $26 billion over the next decade by cracking down on waste and fraud in the medical equipment industry. Diabetics aren’t the only Medicare patients affected. Depending on where they live, patients who rent home oxygen gear and hospital beds, or who need power wheelchairs, walkers and certain other equipment also could see changes in their suppliers and lower prices as a pilot test of this so-called competitive bidding program expands from nine metro areas to a total of 100 on July 1. Medicare is supposed to apply the lower pricing nationally by 2016.

The diabetes initiative is the first to go nationwide — and Blum said it should put an end to unscrupulous practices such as shipping cartons of supplies to diabetics who haven’t run out yet and billing Medicare for the cost.

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