Tag Archives: Tavenner

CMS Says 30 TN Medicare Contractors Not Licensed in TN

Joint news release from Tennessee congressional delegation:
WASHINGTON – Members of the Tennessee United States congressional delegation today announced that their inquiry into whether the administration awarded Medicare contracts to businesses not licensed in Tennessee has resulted in the finding that 30 of 98 suppliers were not licensed and will have their contracts voided.
On May 21, Senators Lamar Alexander and Bob Corker (R-Tenn.), along with Representatives Marsha Blackburn (R-Brentwood), Phil Roe (R-Johnson City), John J. Duncan, Jr. (R-Knoxville), Chuck Fleischmann (R- Ooltewah), Scott DesJarlais, (R-Jasper), Jim Cooper (D-Nashville), Diane Black (R-Gallatin), and Steve Cohen (D-Memphis) sent a letter to the administration requesting details on its policy of awarding Medicare contracts for durable medical equipment to businesses not licensed in Tennessee, a violation of the administration’s bid policy and a violation of Tennessee state law. Durable medical equipment includes products that are intended for at-home care of sick or injured individuals. The category includes wheelchairs, crutches, blood pressure monitors, and hospital beds.
In a letter responding to the May 21 inquiry from the members, the administrator of the Centers for Medicare and Medicaid Services, Marilyn Tavenner, said: “We have determined that certain out-of-state suppliers that were licensed in their home state, but that did not meet aspects of existing Tennessee licensing requirements at the time of bid submission, were awarded contracts. As a result, CMS will take steps to void contracts for these suppliers in the Tennessee competitive bidding areas, consistent with the policies and guidelines established for the competitive bidding program. This applies to approximately 30 out of the 98 contract suppliers in the Tennessee Competitive Bidding Areas.”
Note: The full text of the CMS response is below:

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