Washington At press time, the Alexandria, Va.-based American Association for Homecare reported that conferees appeared to be considering a mix of measures

Washington

At press time, the Alexandria, Va.-based American Association
for Homecare reported that conferees appeared to be considering a
mix of measures affecting the home medical equipment industry
proposed in both the House of Representatives and Senate versions
of the Medicare reform bill. The combination would include a CPI
freeze on DME, followed by competitive bidding on selected products
to be determined by the Department of Health and Human
Services.

Initially, according to the proposal, competitive bidding would
take place in metropolitan areas greater than one million. Starting
in fiscal year 2007, though, the HHS Secretary could decide to move
competitive bidding nationwide and to include a wider range of
products, the association said.

However, AAHomecare and others emphasized such considerations
are by no means final and that negotiations on DME issues remained
fluid. “There are many rumors, and it's very difficult to
confirm what is real and what isn't,” said Cara Bachenheimer,
vice president, government relations, Invacare, Elyria, Ohio.
“Nothing is definitive now.”

What's more, once agreements are finalized on any of the reform
bill's measures, including a prescription drug benefit, the draft
must go through Congressional Budget Office scoring. Earlier this
year, lawmakers vowed to keep any final Medicare bill less than
$400 billion.

While conferees missed a self-imposed Oct. 17 deadline for
completing their report and had pushed that date to Oct. 31,
President Bush urged Congress to continue working to deliver a
prescription drug benefit under the Medicare program. According to
Washington insiders, the bill could hit a roadblock in the Senate,
where Minority Leader Tom Daschle, D-S.D., and 40 other senators
signed a letter opposing the prescription drug benefit proposed in
the House version of the bill.

Another issue that some believe could be a deal-breaker is
whether to allow Medicare to compete with private plans, as
proposed in the House bill. Advocates say such a plan will drive
down costs, while critics say the proposal will cause healthier
seniors to choose private plans. The result could be higher
premiums for seniors in fee-for-service Medicare.

Even as Medicare reform edges toward the brink, talk is already
emerging about the next big health care issue on the Hill.
According to Democrat and Republican congressional staffers, debate
on Medicaid reform likely will launch next year.

For updates, check HomeCare Monday at www.homecaremonday.com.

For breaking news, go to www.homecaremonday.com, the electronic news service
of the home medical equipment industry.