Senate Approves Amendment to Discontinue Capped Rental Option; Power Wheelchairs Exempt

WASHINGTON–The Senate passed a fiscal 2006 budget
reconciliation bill last week that calls for cutting $10 billion
from Medicaid and Medicare over five years–and discontinuing the
capped rental option for DME.

However, power wheelchairs would be exempt under an amendment
from Sens. Rick Santorum, R-Pa., George Voinovich, R-Ohio, and
several colleagues, and passed by the Senate late Thursday.

Language in the 2006 budget reconciliation bill calls for
eliminating 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. The proposal also would have moved beneficiaries’
option to purchase power chairs from the first month to the tenth
month. Under the Santorum-Voinovich amendment, the first-month
purchase option for power wheelchairs was restored.

Industry leaders have opposed the move to discontinue the capped
rental option for DME, claiming that it would shift maintenance and
repair costs for medical equipment to Medicare beneficiaries (See
HomeCare
Monday, Oct. 31). Seth Johnson, director of government
affairs for Pride Mobility and chair of AAHomecare’s Rehab and
Assistive Technology Council, pointed out that “the amendment only
modifies the power wheelchair-specific language, and does not
change the other portions of the capped rental changes impacting
other DME items.”

Another amendment to the bill by Sen. Jeff Bingaman, D-N.M.,
would ensure no state receives a cut of more than 0.5 percent of
its federal Medicaid matching payments during fiscal 2006.

Next week, the House of Representatives is scheduled to consider
its version of the reconciliation bill. After approval of its
version, which includes no Medicare provisions, both the Senate and
House bills will go to conference to reconcile differences, and a
final bill will then be sent to the president for his
signature.