Let's Cut Reimbursement on Six HME Products by as Much as 57 Percent Washington The latest round of potential inherent reasonableness reimbursement reductions announced by the Health Care Financing Administration targets six products and would impose cuts of 22 to 57 percent.

The home medical equipment products included in the Aug. 13 proposed notice in the Federal Register and thecorresponding cuts are:

* Folding walker, HCPCS code E0135, 37 percent;

* Wheeled walker without seat, HCPCS code E0143, 22 percent;

* Commode chair with fixed arms, HCPCS code E0163, 40 percent;

* TENS unit-2 lead, HCPCS code E0720, 57 percent;

* TENS unit 4-lead, HCPCS code E0730, 41 percent;

* Vacuum erection system, HCPCS code L7900, 46 percent.

HCFA says the reductions would be phased in over several years. They would be the first national IR reductions since HCFA cut reimbursement on blood glucose monitors by 7 percent in January 1995.

According to the notice, the items were targeted because they are "high volume in terms of Medicare expenditures."

The proposed payment amounts were derived by marking up the average Department of Veterans Affairs payment by 67 percent, according to officials with the Health Industry Distributors Association, Alexandria, Va. They said HCFA provided no rationale for its use of VA data nor for the 67 percent hike.

The National Association for Medical Equipment Services in Alexandria, Va., also questioned the cuts. "We're going to make sure the data they're using are legitimate," said Asela Cuervo, NAMES vice president, legal and government affairs. "We're definitely going to be commenting on this."

The proposed notice was to be open for written public comments until Oct. 12. HCFA must review them before publishing a final rule to enact the fee changes.

Unlike the regional expedited IR authority granted to the Durable Medical Equipment Regional Carriers in the Balanced Budget Act of 1997, the national IR authority permits annual cuts in excess of 15 percent.