Reacting to 2005 Medicare and Medicaid Services Fees, USA

Main Category: Caregivers / Homecare
Article Date: 19 Nov 2004 - 11:00 PDT

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The American Association for Homecare (AAHomecare) today emphasized the importance of legislation to repeal cuts to certain durable medical equipment (DME) mandated by the Medicare Modernization Act of 2003 (MMA) in light of the 2005 fee schedule, which included expected cuts required by MMA.

The Centers for Medicare and Medicaid Services (CMS) posted the 2005 fee schedule for durable medical equipment and prosthetics/orthotics and supplies (DMEPOS) on its website, which showed that the reimbursement levels for 2005 will be adjusted to the median Federal Employee Health Benefits Program level (FEHBP), per MMA.

The DME items affected by the cuts announced by CMS include nebulizers, hospital beds, air mattresses, manual wheelchairs, lancets, blood glucose test strips, and power wheelchairs. CMS said reimbursement for oxygen would be announced in December.

"We continue to be concerned about the harmful effects of reimbursement rates on our providers who care for millions of homecare patients nationwide," stated Kay Cox, President and CEO of AAHomecare. "We urge Members of Congress to cosponsor the Hobson-Ford bill, H.R. 4491, which would repeal these cuts. At the same time, we work continuously with CMS and the Office of Inspector General to ensure that oxygen reimbursements are fair and accurate."

During the past two days, an additional nine Members of the House of Representatives have been added to the cosponsor list for H.R. 4491, bringing the total to 113.

AAHomecare notes the significant differences between the FEHBP plans' primary patient population, which is younger and healthier than the Medicare patient population. FEHBP plan payments do not reflect the additional costs associated with furnishing necessary services and equipment to the Medicare population. Also the FEHBP plans (and other payers) have different and less stringent claims processing and documentation requirements than the Medicare program. AAHomecare believes that ensuring access to quality, cost-effective healthcare should be the foundation for Medicare policy affecting care received in the home.

Homecare provides tremendous value for Americans' healthcare dollar. AAHomecare is the only national association that represents every line of service in the homecare community, including home health and home medical equipment providers, respiratory and infusion therapy, telemedicine, and rehab and assistive technology. Representing more than 3,000 member locations nationwide, AAHomecare is dedicated to advancing the value and practice of quality, cost-effective health care services where consumers prefer them - at home.

Michael Reinemer
Vice President, Communications
American Association for Homecare
625 Slaters Lane, Suite 200
Alexandria, VA 22314-1171
703-535-1881
www.aahomecare.org
http://www.aahomecare.org

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