The OIG has issued a report on “Power Wheelchairs in the Medicare Program: Supplier Acquisition Costs and Services.” According to the OIG, Medicare paid almost four times the average amount paid by suppliers to acquire standard power wheelchairs during the first half of 2007. Specifically, Medicare paid suppliers an average of $2,970 beyond the suppliers’ acquisition cost to perform an average of five services and cover general supplier business costs. Medicare paid almost two times the average supplier acquisition cost for complex rehabilitation power wheelchair packages during this period, with Medicare paying suppliers an average of $5,627 beyond the suppliers’ acquisition cost to perform an average of seven services and cover general business costs. The OIG recommends that CMS determine whether Medicare’s standard and complex rehabilitation power wheelchair fee schedule amounts should be adjusted by using information from competitive bidding, seeking legislation to ensure that fee schedule amounts are reasonable, or by using its inherent reasonableness authority. CMS concurred with the OIG’s recommendation, although it noted that it is not likely to use its inherent reasonableness authority until the results of the supplier bids for power wheelchairs under the competitive bidding program have been assessed.