Medicare spending on HME/DME shrinking

WASHINGTON, D.C., Jan. 10, 2013—The new National Health Expenditures data released by the Centers for Medicare & Medicaid Services (CMS) shows that durable medical equipment has continued to shrink as a proportion of total Medicare spending, according to the American Association for Homecare. Data from 2011, the most recent available, reveal that spending on home medical equipment dipped to about 1.39 percent of total Medicare spending, which is the lowest percentage in at least the past 10 years. From 2010 to 2011, Medicare spending on HME increased from $7.6 billion to $7.7 billion, an increase of less than two percent. Meanwhile, total Medicare spending increased by 6.18 percent.

Across the entire healthcare system, of which Medicare accounts for about one fifth, HME spending increased by 5.42 percent, from $36.9 to 38.9 billion, reflecting growing demand for home medical equipment and services as the American population ages. So, again, it is clear that HME spending in Medicare is not “out of control.” In fact, as policies continue to squeeze HME reimbursements, Medicare spending on HME is likely to remain nearly flat and continue to fall as a proportion of total spending, even in the face of increasing demand. Go to www.cms.gov or www.aahomecare.org.