Industry Leaders Applaud Removal of Budget Neutrality for Oxygen

WASHINGTON, DC (March 16, 2021)—The Council for Quality Respiratory Care (CQRC)—a coalition of the nation’s leading home respiratory therapy providers and manufacturing companies—thanked The Centers for Medicare & Medicaid Services (CMS) for the appropriate application of recent legislative action to eliminate the budget neutrality statutory requirement to certain home oxygen equipment and services. By doing so, CMS has preserved continued access to home respiratory care for patients living in rural and suburban areas who were most at risk under the previous, outdated budget neutrality requirements.
 
In December, Congress passed H.R. 8158, which secured a technical fix to cuts that CQRC warned threatened patient access to life-sustaining, physician-prescribed home oxygen supplies and equipment. Specifically, the bill eliminates budget neutrality for home oxygen provided under the Medicare program by excluding the creation of separate payment classes and monthly payment rates for oxygen items.
 
“We commend [CMS] for finalizing the appropriate application of budget neutrality changes to home oxygen therapy rates,” said Crispin Teufel, CQRC Chairman. “CQRC applauds this measure on behalf of the estimated 1 million Medicare beneficiaries who rely on these vital respiratory services, especially those residing in rural and suburban areas who are protected under this new policy. We are thankful these policies have been put into practice to ensure continued access to care for COPD patients and other Medicare beneficiaries living with serious respiratory illness, as Congress intended.”
 
The bipartisan legislation eliminated the requirement that CMS cut rates for certain types of home oxygen equipment. These cuts had historically made it more difficult for patients to access liquid oxygen and oxygen concentrators, which now face severe global shortages due to skyrocketing demand during the COVID-19 pandemic. For example, the most recent application of the budget neutrality provision resulted in a 5% reduction for stationary oxygen in non-CBAs, but the impact varied across geographic region. 
 
“As an essential arm of our nation’s healthcare system during the ongoing COVID-19 public health emergency, home respiratory care providers and suppliers must be adequately reimbursed to meet the increased needs of more Americans struggling with respiratory illness,” added Teufel. “The rates just released by CMS demonstrate a recognition of this value to patients and the Medicare program.”