An international or global leader in rapid diagnostic tests, Alere, today issued an update on the decision by the Centers for Medicare & Medicaid Services (CMS) to revoke Arriva Medical's Medicare billing privileges of Arrive Medical. Arriva is considered to be the largest Contract Supplier under the Medicare National Mail Order Competitive Bid Program for Diabetes Testing Supplies, having achieved agreements in every round of bidding and demonstrating its trusted supplier status to Centers for Medicare & Medicaid Services (CMS). An appeal has been filed by the Arriva with the Administrative Law Judge (ALJ) at CMS seeking to reinstate billing status of Arriva. Arriva hopes that the ALJ to hear the appeal within thirty days and release a decision within 3 months. The following statement has been issued by Arriva:
Moreover, today Alere declared that Arriva has filed a complaint, and related motions, in the U.S. District Court for the District of Columbia (the "Court") seeking: (i) to push CMS to stay the procedure regarding the Competitive Bidding Contract termination while the ALJ appeal is ongoing; and (ii) to compel Centers for Medicare & Medicaid Services (CMS) to provisionally reinstate billing number of Arriva while Arriva pursues the ALJ appeal. Arriva hopes a decision on its motions to enjoin on or about the January 5, 2017.
In accordance to the complaint, Arriva alleges that the decision by Centers for Medicare & Medicaid Services (CMS) to bar Arriva from participating in Medicare is driven by a desire to decrease its longstanding backlog of administrative claim-reimbursement appeals. In accordance to the notice of Arriva, the Court recently ordered Centers for Medicare & Medicaid Services (CMS) to clear that backlog by the year of 2020, and, upon information and belief, Arriva has been perceived by CMS to be a contributor to that backlog because Arriva has been emphasized to appeal almost 250,000 errantly denied claims over the last 5 years.
Moreover, on the day of October 12, 2016, without any advance notice, Arriva got a letter from Centers for Medicare & Medicaid Services (CMS) informing it that, effective November 4, 2016, the agency was revoking Medicare supplier billing number of Arriva and barring it from re-enrolling in the Medicare program for a period of 3 years. Then, on the day of November 2, 2016, without granting Arriva the chance to be heard, Centers for Medicare & Medicaid Services (CMS) upheld its previous decision deployed on a 4-day, apparently mechanical review. CMS reached this conclusion in spite of evidence given by Arriva indicating that any mistakes or errors were significantly the result of Medicare system errors.
The Arriva is confident in the merits of this case because, among other key things:
A fact sheet was previously made public by Alere giving additional information regarding relationship of Arriva with CMS.