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Proposed Rule Names More Round 2 CBAs, Calls for Oxygen Changes









      
  
  

BALTIMORE — On June 25, the Centers for Medicare and Medicaid Services posted online its 2011 Proposed Medicare Physician Payment Rule, which includes a number of provisions related to durable medical equipment and oxygen.

According to a summary from Cara Bachenheimer, senior vice president of government relations for Invacare Corp., the rule includes a number of key areas related to the HME industry:

  • Announcement of the 21 additional areas that will be included in Round 2 of the DME competitive bidding program;
  • A proposed national bid program for mail order diabetic supplies;
  • Possible reconsideration of the special payment rules for oxygen and capped rental items under the bid program;
  • A proposed appeals process for contractors whose contracts are terminated under the bid program;
  • A proposal to move up to month 18 the responsibility for oxygen providers to continue furnishing oxygen through month 36 (to address problems of traveling beneficiaries in months 18-36), and;
  • Implementation of the elimination of the first month purchase option for standard power wheelchairs, contained in the new health reform law.

Bachenheimer reminds that this is a proposed rule, with public comments due 60 days from the rule's publication, likely this week, in the Federal Register. A final rule will be issued in late October/early November with an effective date of Jan. 1, 2011.

Courtesy of Bachenheimer, following is her discussion of the details contained in the rule:

Competitive Bid Program Provisions

1. 21 Additional Bid Areas

CMS is proposing the following 21 additional metropolitan areas to be included in Round 2 of the bid program. Round 2 is scheduled to be implemented January 2013 with bidding to being in the Spring of 2011. The initial 70 areas to be included in Round 2 were announced in January 2008. (CMS provided the total population of the proposed additional 21 areas as well.)