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Injunctions Fail to Stop Round One Implementation

July 3, 2008 by HME Business

After the Senate’s failure to put H.R. 6331, which would have delayed implementation of round one of competitive bidding by up to 24 months, to a vote before its July 4 break, motions for injunctions to stop NCB also failed.

Earlier this week, U.S. District Judge Ricardo M. Urbina denied a motion filed by the American Association for Homecare for a preliminary injunction to halt NCB. AAHomecare’s suit against the Secretary of the U.S. Department of Health and Human Services and the Administrator of CMS argues that the regulatory implementation of the bidding program has resulted in numerous violations of the Medicare Prescription Drug, Improvement, and Modernization Action of 2003, the Small Business Act, and the Administrative Procedures Act.’

That said, Urbina’s opinion stated that “Because the court concluded that the plaintiffs are unable to demonstrate an irreparable injury, it denies the request for the extraordinary remedy of a preliminary injunction.”

“While we are disappointed that the court did not grant a preliminary injunction, we are encouraged that the court did not bar our claim on jurisdictional grounds,” said AAHomecare President Tyler Wilson. “The court did not rule on the merits of the case. We believe the law supports our position, and we hope the court will uphold our statutory challenge. In the days and weeks ahead, we will press for a summary judgment from the court.”

The VGM Group Inc. also reported that two other court challenges to National Competitive Bidding were also denied.

The first challenge, supported by Last Chance for Patient Choice, VGM Group’s issue advocacy group, was filed in U.S. District Court in Dallas. The action requested a temporary restraining order to stop competitive bidding, but a judge ruled against the TRO on Thursday.

A similar challenge was also denied by U.S. District Court in Cleveland.

“The cases are still pending, and will be pursued if necessary, but it is hoped that Congress will enact legislation soon that will delay the start of the program for 18 to 24 months while we work to see if it can be stopped permanently,” said Jim Walsh, corporate counsel for VGM Group and LCPC.

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