WASHINGTON--Yesterday, the Senate Finance Committee released a list of revenue options for financing health care reform and, no surprise, reimbursement reductions for home medical equipment were listed as a potential option.
 
A subsection of the long document from the committee, titled “More Appropriate Payment for Durable Medical Equipment,” describes the fee-schedule pricing mechanism used for Medicare DME and outlines proposed options for revising DME payments:
 
“The Office of Inspector General (OIG) at the Department of Health and Human Services has identified potentially overvalued DME items and services; some contend reimbursement for certain DME items and services are under-reimbursed. The committee will explore options to improve payment accuracy for DME items and services.”
 
In an April congressional hearing, HHS Inspector General Lewis Morris told a Senate Homeland Security subcommittee that his office had previously found that “Medicare pays too much for certain pieces of DMEPOS and related supplies, such as power wheelchairs, hospital beds, diabetic supplies, and home oxygen equipment.”
 
For example, Lewis said, in a 2006 report the OIG found that Medicare had allowed, on average, “$7,215 for the rental of an oxygen concentrator that costs about $600 to purchase new. Additionally, beneficiaries incurred, on average, $1,443 in coinsurance charges. We determined that if home oxygen payments were limited to 13 months rather than the current 36 months, Medicare and its beneficiaries would save $3.2 billion over five years."
 
Lewis noted the OIG was also examining reimbursements for wheelchairs and negative pressure wound therapy pumps.
  
Although the Finance Committee document does not propose specific cuts to HME, a press release issued by Senate Finance Chairman Max Baucus, D-Mont., and Ranking Member Charles Grassley, R-Iowa, makes a specific reference to ensuring “appropriate payments” for oxygen and power wheelchairs.
 
In response, an alert from the American Association for Homecare asks HME providers to remind Congress that the HME sector “has already suffered unwarranted and disproportionately large cuts in recent years.”
 
According to Tyler Wilson, AAHomecare president, “Further reductions to home medical equipment reimbursement will tear the already fragile safety net provided by home care. Home medical equipment and care helps reduce the length of expensive hospital and institutional care, allowing people to remain in the comfort of their own homes.”
 
Read the Senate Finance Committee press release.