AAHomecare Engages Policymakers as Tariff Issue Continues to Evolve

ARLINGTON, Virginia—In early March, the Trump Administration delayed proposed 25% tariff increases on products covered under the 2020 United States-Mexico-Canada Agreement (USMCA) until April. These potential new tariffs would join 20% tariffs on products from China already in effect.

Over the last two months, the American Association for Homecare’s (AAHomecare) lobbying team has engaged Capitol Hill on the need to exempt durable medical equipment (DME) from any new tariffs. Its discussions and background materials emphasize that HME suppliers working largely under fixed reimbursement rates cannot pass along higher prices to consumers. 

AAHomecare recently asked the administration to exclude home medical equipment (HME) and supplies from current and proposed new tariffs. The Association’s March 7 letter echoes the messaging from its Capitol Hill meetings:

“New tariffs on HME and medical supplies would severely impact the health and well-being of seniors, chronically ill individuals and persons with disabilities throughout the United States. These tariffs will particularly impact individuals who use HME because most of these products are covered and paid for by Medicare, Medicaid Medicare Advantage plans, and private insurers who have fixed reimbursement amounts. As a result, tariff-driven product cost increases for HME cannot be passed along to consumers. A 10% or more base product cost increase caused by tariffs would force HME suppliers to furnish this equipment at a significant loss, given the narrow product margins already in place for these products.”

The urgency for stemming these tariffs is seen throughout the health care sector, with groups including the American Hospital Association, AdvaMed and HIDA also seeking exemptions for medical devices and products.

AAHomecare said it will continue to share concerns on tariffs with Congress and the administration and is also working on plans to mobilize HME manufacturers and other stakeholders to raise the visibility of negative tariff impacts on the industry and the patients it serves.