Dear Mr. Scully:
I read with great interest your intent to crack down on improper electric wheelchair salesthroughout the United States. Over the past number of months, my staff has been examining thisissue. It is apparent that a few unscrupulous companies have entered the arena of electric scootersand motorized wheelchairs and may be taking advantage of the Medicare program to increase salesand profits.
Medicare spent $10 million on electric scooters in 1999 and by 2002 Medicare spent $18million - a remarkable 80 % increase. During that same time frame, Medicare spent $289 millionon motorized wheelchairs and that figure rose to $845 million in 2002. Let me state unequivocally,there are some Medicare recipients who legitimately need an electric scooter or motorizedwheelchair due to a medical condition or physical disability. However, the meteoric rise in costsincurred over the past few years suggests strongly that there may be a problem here - and a big one.
Coupled with the increase in Medicare funds, I am equally troubled by some of theadvertisements and claims made by some companies. In that regard, enclosed is an advertisementreceived by one of my constituents in Waterloo, Iowa. A review of this document brings forth anumber of interesting points and representations that immediately caught my eye. For example, theadvertisement states that one free phone call can pre-qualify an individual for Medicarereimbursement and goes on to say that “we take care of everything." Perhaps the most interestingrepresentation made in the enclosed advertisement is the following:
“Free scooter guarantee! If we pre-qualify you for a scooter or power chair and Medicaredenies your claim, we’ll give you a new scooter or power chair absolutely FREE!"
We have also been paying attention to the extensive television advertising campaign initiatedby those in the scooter business. These advertisements, along with the mailer discussed above, bringto mind that old saying, “if it looks too good to be true it probably is."
Accordingly, and by this letter, I am requesting that the Department of Health and HumanServices, Office of the Inspector General examine the increase in electric scooters and motorizedwheelchairs paid under the Medicare program, as well as any increase in their market price since1998. By this letter I am also requesting that the Federal Trade Commission look into therepresentations being made by companies to Medicare recipients to ensure the integrity of therepresentations being made in print, as well as on television and radio.
I appreciate your intent to crack down on improper sales in the Medicare program, pleaseadvise me about any progress you have made. Thank you in advance and should you have anyquestions regarding this letter, please do not hesitate to contact my staff.
Sincerely,
Charles E. Grassley Chairman
cc. Dara Corrigan, Acting Principal Deputy, HHSOIG Tim Muris, Commissioner Federal Trade Commission
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Source: Ranking Member’s News
