WASHINGTON, D.C. (December 7, 2020)—The Centers for Medicare & Medicaid Services (CMS) has announced a 0.6% CPI-U adjustment to the 2021 DMEPOS fee schedule for products previously subject to competitive bidding provided in Competitive Bidding Areas (CBAs). The adjustment for suppliers in rural and other non-bid areas is expected to be even less.

“A less-than-one-percent price increase for 2021 is another example of a Medicare reimbursement methodology for HME that is not connected to the economic reality suppliers face,” remarked Tom Ryan, AAHomecare president and CEO.

“The COVID-19 pandemic has saddled HME suppliers with increased product and shipping costs as well as new operational and safety requirements,” Ryan added. “This adjustment doesn’t reflect the reality that suppliers will be facing in 2021, even after the pandemic is effectively controlled.”

“HME provides cost-effective, patient-preferred care and helps keep seniors and other vulnerable populations out of hospitals and other high-cost clinical settings,” Ryan concluded. “A reimbursement structure that isn’t connected to the cost and operational environment that our suppliers face is ultimately going to force highly capable and experienced companies to stop serving Medicare beneficiaries. That would be a disaster for patients, caregivers, and other healthcare professionals, as well as for Medicare budgets.”

More details can be found in CMS's claims processing update, here

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