WASHINGTON--The Senate passed a fiscal 2006 budget reconciliation bill last week that calls for cutting $10 billion from Medicaid and Medicare over five years--and discontinuing the capped rental option for DME.

However, power wheelchairs would be exempt under an amendment from Sens. Rick Santorum, R-Pa., George Voinovich, R-Ohio, and several colleagues, and passed by the Senate late Thursday.

Language in the 2006 budget reconciliation bill calls for eliminating Medicare beneficiaries' choice to continue renting medical equipment in the capped rental category and would require transfer of title to patients for certain DME items after a 13-month rental. The proposal also would have moved beneficiaries' option to purchase power chairs from the first month to the tenth month. Under the Santorum-Voinovich amendment, the first-month purchase option for power wheelchairs was restored.

Industry leaders have opposed the move to discontinue the capped rental option for DME, claiming that it would shift maintenance and repair costs for medical equipment to Medicare beneficiaries (See HomeCare Monday, Oct. 31). Seth Johnson, director of government affairs for Pride Mobility and chair of AAHomecare's Rehab and Assistive Technology Council, pointed out that "the amendment only modifies the power wheelchair-specific language, and does not change the other portions of the capped rental changes impacting other DME items."

Another amendment to the bill by Sen. Jeff Bingaman, D-N.M., would ensure no state receives a cut of more than 0.5 percent of its federal Medicaid matching payments during fiscal 2006.

Next week, the House of Representatives is scheduled to consider its version of the reconciliation bill. After approval of its version, which includes no Medicare provisions, both the Senate and House bills will go to conference to reconcile differences, and a final bill will then be sent to the president for his signature.