AAHomeCare Update
Our Numbers Don't Lie
Mark Twain said, “There are three kinds of lies: lies, damned lies, and statistics.” No doubt, numbers can be twisted to distort the truth, but in the case of home care, there are a number of good statistics that don't lie and that can go a long way to correct misconceptions in Washington.
Here are a few examples:
- Fewer than 2 percent of Medicare dollars go to HME
The best way to appreciate this statistic is in a chart on the AAHomecare Web site that shows Medicare spending from 1993 to 2005. The chart shows a rising line for total annual Medicare spending and lines for hospital care, physician and clinical services, home health and home medical equipment spending.
HME is not only a small fraction of Medicare spending; it is clearly not driving the budget crisis in Medicare, or Medicaid.
After the president issued his proposed 2008 budget in early February, AAHomecare responded the same day. We pointed out that the proposed cuts to Medicare for FY 2008 would heap yet more unwarranted cuts on the most cost-effective form of health care in the Medicare program.
And in testimony to the House Ways and Means Committee, we mentioned that the president's proposed budget would take a disproportionate whack at home care. We pointed out that HME is less than 2 percent of Medicare spending, and yet the administration's proposed budget would cut HME by about 4.5 percent.
- We can save Medicare 5 percent while preserving access to
mobility
The association also opposes another provision in the president's budget that would establish a 13-month rental period for power wheelchairs. This change would reduce beneficiary access and would actually increase costs to Medicare.
The Rehab and Assistive Technology Council at AAHomecare has done some excellent math to illuminate this issue. RATC found that the average Medicare fee schedule payment for a “Group 2 Standard Weight with Captain Seat” (HCPCS code K0823) is $4,023.70. By eliminating the beneficiary's purchase option and requiring power wheelchairs to be rented over a 13-month period, the total rental payments would be $4,224.91. Thus, the Medicare program would pay 5 percent more for power wheelchairs under the president's budget proposal.
















