An auction design for Medicare Durable Medical Equipment is presented. The design addresses the flaws in the current program. Bids are binding commitments. Each bid binds the bidder to particular performance obligations depending on the auction outcome. The bids are made credible through a rigorous qualification one month before the auction. Each bidder provides a financial guarantee in the form of a bid bond or a deposit in proportion to the bidder’s capacity. Capacity is objectively estimated based on the bidder’s supply in recent years, with the most recent year given the most weight. Each winner provides a performance guarantee in proportion to the winner’s estimated volume won. The auction establishes a market clearing price for each product in each service area. The price paid to all suppliers is the clearing price that balances supply and demand. These prices are found in a simultaneous descending clock auction, a simple price discovery process that allows both substitution across items and complementarities. Competition in the auction comes from new entry or the expansion of existing suppliers into new product categories and service areas. After the auction, the winners compete for Medicare beneficiaries by offering quality products and services. Thus, beneficiary choice is used to further strengthen incentives to provide high quality products and services.
Opening remarks of Peter Cramton, Professor of Economics, University of Maryland, and Jonathan Blum, Deputy Administrator, Centers for Medicare and Medicaid Services, at the Medicare Auction Conference, held at the University of Maryland on 1 April 2011. The Medicare Auction Conference, sponsored by the National Science Foundation and the University of Maryland brought together 106 stakeholders to collaborate on how to improve the Medicare DME Competitive Bidding program. The Medicare auction program is currently in a pilot stage, but will soon be expanding nationwide (with Round 2). This was a critical opportunity to debate the basic issues as well as learn about the latest auction methods that could simplify and improve the effectiveness and sustainability of the auction program. In addition, the conference provided a forum to debate whether auctions are feasible in the Medicare setting and how they can best be structured.
Maryland Men's Basketball: Giving Back
Documentary on the mascot of the University of Maryland completed by Humphrey Fellows from the Philip Merrill College of Journalism.
Dr. Allison Druin
Director of Human-Computer Interaction Lab (HCIL)
Associate Professor in College of Information Studies and Institute for Advanced Computer Studies
University of Maryland
"Women in HCI Lecture Series" recorded on October 9, 09 at Iowa State University.
For more information about Human Computer Interaction at Iowa State University, visit
Sponsored by: Women in Human Computer Interaction Series, Women in STEM Speaker Series, Electrical and Computer Engineering, and Committee on Lectures (funded by GSB).