After receiving a letter from 227 lawmakers calling for CMS Administrator Marilyn Tavenner to delay implementation of Round Two of competitive bidding due to various problems found with winning bidders, CMS will not implement an administrative delay of Round Two of competitive bidding.
That said, Tavenner said in a response to a similar letter from the Tennessee delegation that CMS would void the contracts for bid winners in Tennessee that did not have the necessary state licenses. This would amount to roughly 30 of the 98 suppliers contracted via Round Two.
The Administrator said that CMS contracts with “carefully screened” suppliers that are accredited, financially sound and meet “state licensing standards,” and implied that the suppliers that were not licensed had failed to meet that requirement because certain “states change their licensing requirements or reinterpret existing ones during the supplier bidding process.”
The letter from the 227 lawmakers, which was organized by Rep. Glenn “GT” Thompson (R-PA), as well as the Tennessee delegation’s letter, came after analysis in early May showed that more than 30 percent of Round Two contract holders did not possess licenses or permits in some or all of the states for which they held contracts.