Industry Hustles to Fight Capped Rental Provision in Senate Plan

WASHINGTON–While most savings outlined in the Senate Finance
Committee’s colossal Medicare/Medicaid spending package for 2006
are aimed at reducing subsidies for the pharmaceutical industry,
one section would hit the HME industry where it hurts,
discontinuing the capped rental option for equipment.

According to AAHomecare, the provision would eliminate Medicare
beneficiaries’ choice to continue renting medical equipment in the
capped rental category and would require transfer of title to
patients for certain DME items after a 13-month rental.

On Monday, the association sent a letter opposing the change to
Finance Committee Chairman Charles Grassley (R-Iowa) and Ranking
Member Max Baucus (D-Mont.) making the following points:

–DME providers are currently required to notify patients about
the option to rent or purchase durable medical equipment in the
capped rental category, but the vast majority of Medicare
beneficiaries prefer the rental option.

–It is neither safe nor fair to shift the burden of maintenance
and repair for medical equipment to the disabled or elderly
Medicare beneficiary.

–If the medical equipment is purchased, the patient incurs
additional fees for clinical or emergency support or for exchange
of malfunctioning equipment.

–There may be medical equipment items that should not be
categorized as capped rental, but selecting those items should be
carefully deliberated.

–Beneficiary access to power wheelchairs will be jeopardized by
the provision.

An Oct. 21 letter to delivered to Grassley from VGM Management
President Jim Walsh pointed out that “any elimination of
‘maintenance fees’ (after the capped rental period ends) will
likely result in seniors having difficulty with the equipment or
having to pay for repairs and maintenance themselves … Half of
the compromise that created the ‘capped rental’ concept was that
the maintenance fee replaced continued rental payments. Maintenance
doesn’t go away with the wave of the legislative wand … it just
means people who already have serious health problems have to pay
for things themselves or live with poorly or non-functioning
equipment.”

The full Senate is expected to vote on its plan, including the
capped rental measure, this week.