Specter Asks for Support on PWC Purchase Option Delay

WASHINGTON—On Friday, Sen. Arlen Specter, D-Pa., asked Senate colleagues to sign a letter supporting a one-year delay of the elimination of the first-month purchase option for power wheelchairs.

Addressed to Sens. Max Baucus, D-Mont., chairman, and Charles Grassley, R-Iowa, ranking member of the Senate Finance Committee, the letter reads:

“Providers of mobility products are reliant on timely payment from Medicare to provide costly products, such as power wheelchairs to Medicare beneficiaries. The change to a mandatory rental requires providers to purchase standard power wheelchairs and wait 13 months to receive full payment, even though the costs are front loaded. Transitioning to a mandatory rental model can only be accomplished over time and with financing available to purchase power wheelchairs in a manner that will not result in negative cash flow. With the credit markets still tight, lenders are unwilling to extend financing options to power wheelchair providers.

“A one year delay will allow providers of power wheelchairs more time to implement this significant policy change. Absent a delay in implementation, this change will create significant access and quality of care issues as providers either struggle to make the significant changes to their business model to adapt to the new payment model or simply go out of business.”

A similar letter spearheaded by Reps. Jim Langevin, D-R.I., and Glenn Thompson, R-Pa., has been circulating in the House.

The industry is working to delay the measure in exchange for a 1 percent reduction in the Consumer Price Index update.

In a Friday report, AAHomecare called the delay “the most realistic legislative option for a remedy now.” The association estimates elimination of the purchase option will reduce provider cash flow by 40 percent in the first year the policy change is implemented.

Several advocacy organizations also have voiced support for the delay, including the American Association of People with Disabilities, Association of Programs for Rural Independent Living, National Council on Independent Living, National Spinal Cord Injury Association, Paralyzed Veterans of America and the United Spinal Association.

Providers have until Sept. 23 (Thursday) to get their senators to sign on to the Senate letter, and until Sept. 22 (Wednesday) to get representatives’ signatures on the House letter.