WASHINGTON (Reuters) - The durable medical equipment industry, which sells supplies like oxygen tanks, lost a legal battle with the U.S. government Monday when a court ruled in favor of competitive bidding in the Medicare program.
The U.S. District Court for the District of Columbia denied a request for a preliminary injunction sought by the American Association for Homecare, which has been trying to stop a pilot project from going forward July 1.
"Because the court concludes that the plaintiffs are unable to demonstrate an irreparable injury, it denies the request for the extraordinary remedy of a preliminary injunction," the court wrote.
Makers of so-called durable medical equipment (DME) including wheel chairs sleep apnea products are fighting a Medicare bidding project intended to combat fraud and waste in the health insurance program that serves 44 million elderly and disabled people.
The Centers for Medicare and Medicaid Services (CMS) said the bidding program will go forward Tuesday. The pilot project, which will begin in 10 cities, limits the number of suppliers and cuts prices on average 26 percent in 10 classes of medical equipment.
"We're starting the program tomorrow," said Peter Ashkenaz, a spokesman for CMS.
The court said the industry gave no figures on its estimated loss and "the court will not rely on pure speculation" to grant a stay.
The American Association for Homecare said it would press the court for a ruling on summary judgment in the weeks ahead. It also said it was encouraged that the court did not bar the claim on jurisdictional grounds.
U.S. lawmakers, subject to intense industry lobbying, had been trying to delay the program but the measure was part of a larger Medicare financing bill that failed to pass before Congress left last week for the July 4 holiday.
Some analysts have said a delay could still pass after the holiday, and the program could face a retroactive reversal.
