In Brief

A federal appeals court has reversed a lower court ruling that blocked Tennessee from dropping 323,000 from its Medicaid program. A three-judge panel of the 6th U.S. Circuit Court of Appeals said a federal judge overstepped his authority in January when he blocked Gov. Phil Bredesen’s plan to cut TennCare. But the plan is still not completely in the clear. An upcoming hearing will determine whether the state can limit services for an additional 396,000 beneficiaries.

South Carolina has introduced a bill to exempt Medicare- and Medicaid-reimbursed DME, prosthetics and supplies from sales tax. The bill would require the state, which taxes these products at 5 percent, to reduce sales tax by 1 percent a year over five years. With the current taxing system, providers “can’t pass on that payment to the consumer; they have to eat [the expense],” said Bobby Horton, executive director for the South Carolina Medical Equipment Services Association.

The Missouri House has passed a Medicaid reform bill that would eliminate coverage for most adult DME. The vote came the same day the state House passed a budget that would fund certain equipment — such as wheelchairs and oxygen but not other products like canes, crutches, catheters and commodes. At press time, Gov. Matt Blunt was expected to sign the bill; the Senate Appropriations Committee was reviewing the House budget.