Have you ever given money to a needy friend or relative only to see them waste the money? Frustrating isn't it? Especially when you skip many of the nicer things in life to try to save the money that you gave them.
That's why this report from the Health and Human Services department of the government burned my toast. They were talking about comparing how 5 states bought diapers for the Medicaid program using competitive bidding. HHS calculated that if every state implemented the same process that they could save 23% or a total of $62 million!
All State Medicaid programs implemented cost-control measures—such as quantity limitations or reductions in fee-schedule amounts—for incontinence supplies. Five State Medicaid programs implemented competitive bidding programs. These programs reported savings of up to 50 percent. If State Medicaid programs had paid suppliers at the median competitive bidding rate, they could have paid 23 percent less, saving $62 million. Other positive outcomes resulted from competitive bidding, such as increased beneficiary access to supplies, increased product quality, and State Medicaid program control of providing supplies. However, States reported encountering initial challenges with their competitive bidding programs, and six States attempted to establish competitive bidding but did not fully implement it.
Now it's been awhile since we've bought diapers in the Dollar Stretcher house, but as I recall we clipped coupons and watched for sales. No way would we spend 23% more than we had to on something that was going to be treated...well, like a diaper. I suspect that it would be safe to say that your family is just as careful to get the best deal you can on diapers.
So I feel a little bit like the guy watching his brother-in-law waste the money I sacrificed to save. Don't know about you, but it kinda makes me mad. Makes we want to tell those who are spending my money to not treat is as something that gets...well, thrown away with the diapers.