Price Reintroduces Bill to Repeal O2 Cap

WASHINGTON–Last Monday, Rep. Tom Price, R-Ga., reintroduced the
Home Oxygen Patient Protection Act.

The bill would repeal the Deficit Reduction Act’s rental cap on
Medicare home oxygen and restore ownership of equipment to
providers.

H.R. 621, its official designation this time around, is a carbon
copy of legislation introduced in the last congressional session by
Price, a physician, and Michigan Rep. Joe Schwarz, also a
physician. (See HomeCare Monday, June 5, 2006.)

Known as H.R. 5513, last year’s bill picked up 84 cosponsors but
was referred to committee with no action before the 109th Congress
adjourned. Schwarz, an ear, nose and throat surgeon, had vowed to
reintroduce the bill if it didn’t pass, but he was defeated in
Michigan’s Republican primary.

A Senate companion bill, introduced last year by Sen. Pat
Roberts, R-Kan., had seven cosponsors at the session’s end.

“Under the Deficit Reduction Act of 2005, Congress merely
considered the economic issues of home oxygen therapy, and not the
clinical aspects. This legislation to repeal this provision of the
DRA is in the best interest of patients, the medical community and
Medicare,” said Price, minority whip in the House.

H.R. 621 would, in effect, repeal provisions in the DRA, which
moved Medicare home oxygen from continuous rental to a
rent-to-purchase model. The DRA caps oxygen rental at 36 months,
and then requires that title to the equipment be transferred to the
beneficiary.

The three-year counter for beneficiaries already using oxygen
began Jan. 1, 2006.

But both patient and provider stakeholders, including the
American Lung Association and the American Association for
Homecare, have argued that the new policy could put patients in
danger if they are responsible for upkeep and maintenance of their
oxygen equipment–a service many companies currently provide as
part of the rental fee.

A study conducted for AAHomecare last year determined that only
28 percent of the cost of providing home oxygen relates to
equipment, while the bulk goes to services and overhead required as
a part of providing the therapy. In June, Price presented the
results of the study, conducted by research firm Morrison
Informatics, at a briefing for Capitol Hill staffers. (See HomeCare Monday, July 10, 2006.)

“Home oxygen therapy provides an essential benefit to our
seniors. Medical oxygen is complex and highly regulated, and
requiring Medicare beneficiaries to own this equipment for their
therapy raises numerous health and safety concerns,” Price said.
“Reintroducing this legislation allows us to make Medicare more
efficient and ensure patients receive the highest quality of care
in the safest manner.”

According to AAHomecare President and CEO Tyler Wilson, “it is
significant that we have this important marker in place now since
the president’s budget may propose additional cuts to the Medicare
home oxygen benefit.”

The industry must now drum up support for the measure, picking
up enough cosponsors to garner attention in the House and get a new
companion bill introduced in the Senate.

Provider Todd Tyson, president of Hi-Tech Healthcare, Norcross,
Ga., said as soon as he learned Price had reintroduced the bill, he
began contacting other members of the Georgia congressional
delegation to sign up as cosponsors.

“All of us need to rally around Rep. Price and go after the
representatives who supported the bill last year” to sign on again,
Tyson said. With more Democrats in the House this session, he
continued, “I’m pretty optimistic that it should be easier to get
this bill through.

“Congressman Price has really stepped up to help [the
industry],” Tyson said. “I could just kiss that man on the
lips!”

To view the text of H.R. 621, click here.

To locate your state’s federal representatives, visit the
congressional Web portal at http://thomas.loc.gov.