WASHINGTON, D.C. (October 6, 2015)—The Centers for Medicare and Medicaid Services (CMS) has released a preliminary list of what they consider rural zip codes. The rural areas in these ZIP codes will receive a ten percent add-on when competitive bidding rates go into effect nationwide on January 1, 2016.

Download the zip file here. However, the file does not contain any pricing information. It is interesting to note that the rural ZIP codes as defined by CMS make up about 38 percent of the nearly 42,000 zip codes in the country.

Today’s announcement brings into focus the need for a legislative solution that will lessen the impact of CMS’ proposed bidding-derived cuts on rural providers before they go into effect on January 1. AAHomecare is working with leaders on Capitol Hill to introduce legislation that would:

  • Establish a 30 percent adjustment for rural suppliers to address their challenges serving widely spread communities;
  • Provide a four year phase in for national price adjustments;
  • Reinstate unadjusted fee schedule as bid cap, instead of CMS proposal for cap at previous bid rates; and,
  • Provide for a demonstration project for a market pricing program approach, similar in approach to the plan championed by Rep. Tom Price (R-Ga.) in H.R. 1717 in the 113th Congress.

If your company will be subject to new bidding derived rates that will cut reimbursements by more than 50 percent in some categories, please contact your legislators and let them know what these significant reductions will mean for you and your patients.