AAHomecare has raised the stakes in its bid to halt national competitive bidding. On June 9, the association filed a federal lawsuit against Department of Health and Human Services Secretary Michael Leavitt and CMS Acting Administrator Kerry Weems. AAHomecare claims their implementation of the program has resulted in numerous violations of the Medicare Prescription Drug, Improvement and Modernization Act of 2003 (MMA), the Small Business Act and the Administrative Procedures Act. Specifically, the association claims:

*The secretary did not specify in either the proposed or final rule the applicable financial standards, resulting in providers being unfairly excluded from the program.
*CMS redefined what it meant to be a small provider (from $6.5 million to $3.5 million in total annual revenues) without any explanation.

AAHomecare CEO Tyler Wilson stated in a release: "While we continue a full-court press on the legislative front to delay the bidding program, we also want to get the courts involved in reviewing this troubled program. This flawed bidding program has not only been mishandled by CMS but both CMS and HHS have violated the underlying statute in developing and implementing the program. The bidding program will put thousands of homecare providers out of business, and patients' access to quality home medical equipment and services will suffer as a result."

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