Background 110 of the largest, most densely populated MSAs in the country currently participate as Competitively Bid Areas (CBAs) in the Competitive Bidding Program (CBP) for DMEPOS (Durable Medical Equipment, Prosthetics, Orthotics, and Supplies). These CBAs are home to 58% of all Medicare beneficiaries in the nation. Under the CBP, durable medical equipment (DME) suppliers, often called home medical equipment (HME) suppliers, compete for a limited number of contracts to serve Medicare beneficiaries...

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As reported recently in HME News, Northern Rehab Equipment & Respiratory closed after 19 years serving the community. AAHomecare reached out to Stephanie Schwartz PT, ATP, CAPS, to understand the full story and to share her experience. She said the following: “Yes, the reimbursement rates and policies had a huge effect on my business and is why I closed.  Just to summarize the recent events for you: I am a very proactive owner and I like to make business decisions in advance of...

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As reported in Wednesday in Washington, AAHomecare remains focused on legislative and regulatory strategies to move the industry forward. But our investment in payer relations has also produced impressive returns for HME providers in our first year focusing on this area. “With increasing pressure to save money on state budgets, it’s critical that we have a strong capability to help respond to proposed Medicaid rate cuts and rally providers and state associations to advocate for...

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Rural and non-bid area oxygen suppliers need relief from “double dip” cuts in the 2017 Medicare fee schedule for stationary oxygen, which result in rates for rural and other non-bid area suppliers that are lower than the competitive bidding rates for this product category in many CBAs.  These new rates stem from the application of a 2006 budget neutrality offset balancing increased utilization for oxygen generating portable equipment with lower reimbursement for stationary equipment. AAHomecare...

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The latest version of the 21st Century CURES bill to be considered this week on Capitol Hill includes language that would retroactively roll back the second round of Medicare competitive bidding-derived cuts for rural and non-bid area home medical equipment (HME) providers for six months, as well as a provision to further delay the application of bidding-derived pricing for complex rehab technology accessories for an additional six months. The proposed legislation: Extends the transition...

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The American Association for Homecare (AAHomecare) has launched a new initiative to survey medical professionals and other individuals in the caregiving continuum to measure the impact of recent Medicare reimbursement cuts on seniors, as well as people with disabilities and chronic conditions.  This survey comes in response to requests from home medical equipment (HME) companies for a comprehensive program to better document new challenges medical professionals face in getting equipment for...

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Just a day away from the July 1 cuts, AAHomecare is receiving information from from suppliers across the country who are faced with tough business decisions that will hurt patients. Sandwich, Massachusetts As a result of Medicare's application of competitive bidding-derived prices in rural markets, Cape Medical Supply, Inc. in Sandwich, Mass. announced they will no longer accept new patients on Nantucket Island.  As the only respiratory care provider for this market, Gary Sheehan,...

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