ARLINGTON, Va.—After working for weeks to find common ground on reform of Medicare’s oxygen benefit and repeal of the 36-month cap, the American Association for Homecare said Friday that a proposal is nearly complete.

AAHomecare’s New Oxygen Coalition, a group representing a range of home oxygen stakeholders, has been meeting over the past 45 days to come to agreement over the reform plan, originally proposed by the association and the Council for Quality Respiratory Care. But some state associations balked at the plan because it did not immediately address the 36-month cap and the post-cap payment rules (see ”Oxygen Stakeholders Work toward Common Ground,” Feb. 9).

There was also unease among some providers over how the CQRC plan would pay for oxygen under a case-mix adjusted system. Both Jason Rogers, president of the Georgia Association for Medical Equipment Services, and the Big Sky Association for Medical Equipment Services proposed alternate plans.

But as the nation’s health reform debate speeds up, members of the NOC--which includes some state associations, VGM, The MED Group, the CQRC, the National Association of Independent Medical Equipment Suppliers and AAHomecare--have worked quickly to settle their differences. "The big push is to get a unified voice," Mike Calcaterra, Montana state chairman and legislative/DAC chair for the Big Sky association, told HomeCare Monday last month. "We need to make sure we are on message [in Washington] with something that is giving us immediate relief. We are already seeing providers closing their doors."

According to AAHomecare, a NOC workgroup has been meeting in person and by phone to develop a reform plan that addresses the problems with the current Medicare oxygen payment system. The goal is to put the final reform plan into legislation that would be considered by Congress this year, the association said.


“All of our political intelligence tells us that oxygen providers may face a further reduction in the reimbursement period from 36 to 18 or fewer months. Alternatively, or even in conjunction with a reduced reimbursement period, current payment rates could be severely cut,” said AAHomecare President and CEO Tyler Wilson.

“Add to this state of affairs the prospect of competitive bidding. It is within that context that a reform plan is being proposed,” Wilson continued. “In essence, the NOC has developed a reform plan out of necessity (including admonitions from our allies on the Hill) because the home oxygen benefit is under siege.”

Looking for consensus on the draft plan, the association has sent it out to state associations for vetting this week and is hoping for feedback--and endorsement--before the plan is put into final form. Wilson and Walt Gorski, AAHomecare vice president of government affairs, will detail the plan for attendees at the association’s “Washington Update” at Medtrade Spring on Wednesday, March 25.

The session will take place at 2 pm in Room N261 at the Las Vegas Convention Center.