Price Reintroduces Bill to Repeal O2 Cap

Washington

Shortly after the 110th Congress began its new session last month, Rep. Tom Price, R-Ga., reintroduced the Home Oxygen Patient Protection Act.

The bill would repeal the Deficit Reduction Act’s rental cap on Medicare home oxygen and restore ownership of equipment to providers.

H.R. 621, its official designation this time around, is a carbon copy of legislation introduced in the last congressional session by Price, a physician, and Michigan Rep. Joe Schwarz, also a physician.

Known as H.R. 5513, last year’s bill picked up 84 cosponsors but was referred to committee with no action before the 109th Congress adjourned. Schwarz, an ear, nose and throat surgeon, had vowed to reintroduce the bill if it didn’t pass, but he was defeated in Michigan’s Republican primary.

“Under the Deficit Reduction Act of 2005, Congress merely considered the economic issues of home oxygen therapy, and not the clinical aspects. This legislation to repeal this provision of the DRA is in the best interest of patients, the medical community and Medicare,” said Price.

H.R. 621 would, in effect, repeal provisions in the DRA, which moved Medicare home oxygen from continuous rental to a rent-to-purchase model. The DRA caps oxygen rental at 36 months, and requires that title to the equipment must then be transferred to the beneficiary.

The three-year counter for beneficiaries already using oxygen began Jan. 1, 2006.

But both patient and provider stakeholders, including the American Lung Association and the American Association for Homecare, have argued that the new policy could put patients in danger if they are responsible for upkeep and maintenance of their oxygen equipment — a service many companies currently provide as part of the rental fee.

A study conducted for AAHomecare last year determined that only 28 percent of the cost of providing home oxygen relates to equipment, while 72 percent goes to services and overhead required as a part of providing the therapy.

“Home oxygen therapy provides an essential benefit to our seniors. Medical oxygen is complex and highly regulated, and requiring Medicare beneficiaries to own this equipment for their therapy raises numerous health and safety concerns,” Price said.

“Reintroducing this legislation allows us to make Medicare more efficient and ensure patients receive the highest quality of care in the safest manner.”

According to AAHomecare President and CEO Tyler Wilson, “it is significant that we have this important marker in place now since the president’s budget may propose additional cuts to the Medicare home oxygen benefit.”

The industry must now drum up support for the measure.

Provider Todd Tyson, president of HiTech Healthcare, Norcross, Ga., said as soon as he learned Price had reintroduced the bill, he began contacting other members of the Georgia congressional delegation to sign up as cosponsors.

“All of us need to rally around Rep. Price and go after the representatives who supported the bill last year” to sign on again, Tyson said. With more Democrats in the House this session, he continued, “I’m pretty optimistic that it should be easier to get this bill through.”