Survey Shows Harmful Impact of Cut to Inhalation Dispensing Fee, USA

Main Category: Caregivers / Homecare
Article Date: 09 Oct 2005 - 0:00 PDT

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Nearly half (44 percent) of homecare pharmacies will stop providing home inhalation drug therapy to older and disabled Americans who need it if there is a substantial cut to the Medicare dispensing fee for this therapy. Half (50 percent) said they would curtail services to Medicare beneficiaries and 3 percent said they would go out of business altogether as a result of a substantial cut to the fee.

These are some of the conclusions of a national follow-up survey of homecare pharmacies commissioned by the American Association for Homecare (AAHomecare) conducted during August and September 2005 by Muse & Associates, a Washington-based research firm.

The homecare pharmacies reported in the Muse survey that their total dispensing costs for services they provide related to nebulized inhalation drugs are $66.55 for a 30-day supply and $138.80 for a 90-day supply. Fewer than one percent of shipments used the 90-day supply schedule. Most homecare pharmacies (77 percent) do not use the 90-supply at all. The survey gathered responses from 82 homecare pharmacies, which together provide inhalation drug therapy to more than half of all of the Medicare beneficiaries who use the therapy.

"This updated Muse survey data indicates that the dispensing fee should be increased from the current $57 per monthly supply for this essential respiratory therapy that nearly one million seniors and disabled Americans need," said Kay Cox, President and CEO of the AAHomecare. "There is no data that supports a cut in the dispensing fee for 2006."

In the Muse survey, inhalation services were grouped into seven major categories that represent 117 distinct inhalation therapy services. The survey respondents indicated that all seven major service categories should be accounted for in the dispensing fee.

Earlier in the year, the AAHomecare expressed strong opposition to a proposed cut in the Medicare dispensing fee for home inhalation drug therapy. In its proposed 2006 physician fee schedule released in July, CMS suggested that there would be a cut in the dispensing fee, which is currently $57 per monthly supply.

CMS Open Door Forum October 20
The next CMS Home Health, Hospice & DME Open Door Forum is scheduled for October 20, 2005, 2:00 p.m. ET. Call 800-837-1935 and use conference ID 2865480.

Still Time to Register for Medtrade and AAHomecare Continuum of Care Conference
There is still time to register for AAHomecare's Continuum of Care Conference, October 17, and Medtrade, October 18-20. For registration information, visit: aahomecare.org/cde.cfm?event=101963.

American Association for Homecare
http://www.aahomecare.org

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