SACRAMENTO, Calif.
A budget that passed the California Assembly July 29, and was
signed Aug. 9 by California Governor Gray Davis, would cut Medi-Cal
providers' rates by 5 percent effective Jan. 1, 2004, according to
a bulletin from the California Association of Medical Product
Suppliers.
While the budget allows a few exceptions to the rate cut,
medical supplies are not among those exceptions, CAMPS explained.
“The cut applies to medical supplies and pharmacies; however,
it gives Medi-Cal the discretion to apply the reduction to [durable
medical equipment].”
Furthermore, the budget eliminates DME providers' ability to
bill Medi-Cal for prosthetics and orthotics, and gives Medi-Cal the
authority to base DME reimbursements on one of three methodologies:
the current Medi-Cal allowable; a rate that does not exceed 80
percent of the Medicare allowable; or the guaranteed acquisition
cost, plus a markup.
The budget also outlines “options” for altering
reimbursements for unlisted DME, which include custom wheelchairs
and modifications, CAMPS added. “CAMPS continues to negotiate
with Medi-Cal on a potential reimbursement alternative for unlisted
DME,” the association said. “The bill language allows
us to continue discussions after the legislation is
enacted.”
For breaking news, go to www.homecaremonday.com, the electronic news service
of the home medical equipment industry.
