Advocates Recommend Freeze for Rural Competitive Bidding Rates

WASHINGTON, D.C. (January 27, 2016)—Since the start of the New Year, AAHomecare leadership has taken part in numerous discussions with leading companies and associations in the HME sector to map out strategy to get relief for companies in rural areas, as well as those in other non-bid areas, now subject to Medicare competitive bidding-derived pricing. After considering a range of options and approaches, the stakeholders involved have reached a consensus to advocate for freezing the rates at levels now being applied (and through June 2016), which blends the previous fee-for-service prices in effect before January 1 with bidding-derived prices on a 50-50 basis.

While these initial phase-in cuts will certainly cause financial hardships for HME suppliers in rural/non-bid areas, we believe that working to prevent planned subsequent cuts that could reduce prices for many items by as much as 45% is the best approach to keep these suppliers afloat and help maintain access to critical products and services in less densely populated areas.

In preliminary discussions, our champions in both the House and Senate have reacted positively to this proposal as a realistic course of action to get legislation passed this year. In addition, we hope to engage CMS to consider freezing the rates at the current phase-in levels beyond the six month period before further cuts take place.

We believe that this approach represents the best chance to keep the deepest and most damaging cuts from wreaking further havoc on rural/non-bid HME suppliers. We will be sharing more with you about our plans to move forward in the coming weeks, and look forward to working with AAHomecare members and the HME community to generate grassroots support and Congressional action on this issue.

Visit aahomecare.org to learn more.