AAHomecare Asks State Medicaid Agencies Not to Cut Costs for HME

WASHINGTON, D.C. (May 1, 2020)—The COVID-19 pandemic is causing widespread financial distress for individuals, families, companies, and governments across the nation—including state government budgets. Not surprisingly, some states may be considering reducing Medicaid reimbursement rates for HME and other health care segments as one potential avenue to help relieve these unexpected budgetary pressures.

Oklahoma Medicaid is planning rate reductions which would take effect on July 1, 2020, while Medi-Cal in California has recently implemented rate reductions and looking to recoup money to new rates back to Jan. 1, 2019. AAHomecare is currently working with HME leaders in Oklahoma and California to push back against these cuts.

AAHomecare is asking CMS to make sure states do not engage in cost-cutting measures that will adversely impact Medicaid patient access to HME. In a letter sent April 29, to the Deputy Administrator and Director for Medicaid & CHIP Services, AAHomecare urges the agency to make sure that the profound financial pressures and health risks experienced by HME suppliers in ensuring patients have adequate access to medical services and items during this pandemic are taken into account in assessing any proposed rate cuts. The Association also encourages the Agency to issue a letter to state Medicaid directors affirming the continued applicability of medical access monitoring review plan requirements during the COVID-19 emergency.

See the letter here. AAHomecare’s Payer Relations team will continue to monitor any proposed state Medicaid rate adjustment proposals and work with our state/regional association partners to engage state-level healthcare officials and legislators in support of sensible and sustainable payment policies.