Devil is in the details of a new Medicare plan to buy medical supplies

Math Trek

Medicare could waste billions of dollars, bankrupt small businesses and leave seniors without crucial equipment like oxygen tanks and wheelchairs, some economists warn, with a new auction-based purchasing plan that ignores mathematical principles of competitive bidding.

The new plan began with an apparently good idea: Medicare has started buying durable medical equipment through a competitive bidding process rather than through fixed prices influenced by industry lobbying.