Andrew D'Onofrio-FL

We are a small provider of mail order diabetic and related supplies that has 7 employees. We are currently accredited by ACHC, as was needed to participate in the bidding process. The cost of the accredtstion was 4,000.00 dollars and took more than 20 man hours to achieve our accredtation. Our accredtation is now up for renewal at an additional cost of 4,000.00 dollars. The biidding process took us more than 200 man hours and a few thousand dollars to provide the necessary documentation. As you know the process at CMS was quite messy to say the least. In addition to the loss of capital that we have incurred we have now sustained a nine and a half percent decress in Medicare payments and a forfeited 5% increase which would have come due this year. Small businesses cannot continue to sustain a viable economic structure in view of the current policies that are being set forth by CMS. Our industry employes many tens of thousands of people. As was evidenced by the "selected few" providers during the first canncelled round of bidding, our industry would shrink by at least 80% and those employees would no longer be employed. The competitive bidding program needs to be stopped permanently so as to avoid the continued loss of jobs. Many large diabetic suppliers have bought out smaller diabetic mail order companies because of the fear that competitive bidding brings with it. Those owners that have invested many years of their lives to build their business and employ the tens of thousands of workers are concerned that they will not be able to continue doing business with the Medicare program which in most cases accounts for on the average of 80 % of their business. We are concerned about, and unsure of the direction that CMS is taking us. We ask that Congress put forth a bill to halt the competitive bidding program permanently, so that we may begin to rebuild our business and once again begin rehiring those employees that were laid off in anticipation of the loss of the Medicare portion of our business. Thank you for you concern and understanding in this matter. Sincerely, Andrew D'Onofrio, M.Ed. President / Director Diabetes Providers Inc.