BALTIMORE--After a strong rally by rehab industry stakeholders, CMS upped reimbursement payments for some Group 2 and Group 3 power wheelchairs Thursday.

The agency said the changes were made after reviewing comments about the new power mobility device fee schedule, which will take effect this Wednesday. Released Oct. 2, the schedule originally called for cuts as high as 40 percent for some equipment (see HomeCare Monday, Oct. 9). According to CMS Acting Deputy Administrator Herb Kuhn, industry input on product classification, errors in fee calculations and other information led to a review "to really make sure we've got accurate prices for these chairs."

Laurence Wilson of CMS' Chronic Care Policy Group said fees for some of the 64 codes were increased "well over $1,000."

CMS said that to revise the pricing it used the Aug. 23 product classification list and pricing database generated by the SADMERC. According to the agency, pricing was improved over the previous fee schedule by adding the cost of features such as seat belts, adjustable foot plates and solid-fill tires.

The agency also examined new manufacturer data; revised its formula to ensure that inflation factors were applied uniformly; and made sure heavier weight power wheelchairs were not priced lower than those of standard weight because of a lack of data.

Reaction to the revised schedule so far has been mixed.

According to Sharon Hildebrandt, executive director of the National Coalition for Assistive and Rehab Technology, "On the whole, we're really quite pleased ... We just want to verify their methodology and how they came up with the prices."

Hildebrandt said she expects more information this week on exactly what items were included in the calculations for the basic equipment package CMS included in the fees.

Provider Tim Pederson, CEO of WestMed Rehab, Rapid City, S.D., and vice president of AAHomecare's Rehab Council, said, "While not perfect, the Group 3 fees are a definite step in the right direction ... We had considered discontinuing PMD services to Medicare beneficiaries after Nov. 15. I am happy to report that we are no longer considering that action.

"I believe with careful product selection, providers can continue to provide complex rehab and assistive technology to Medicare beneficiaries."

But in a statement issued Friday, the Washington-based Power Mobility Coalition said although "this slight bump in price for Category 2 PMDs is welcomed, the revision does little to alleviate concerns that steep price reductions will force suppliers to close their doors and beneficiaries to have few, if any options, for quality equipment and service."

The revised schedule still cuts reimbursements up to 35 percent, the PMC said, with a $300 increase for Group 2 chairs still representing a 25 percent drop.

Following is a CMS summary of how it refined the new fee schedule:

• CMS is using the best available data for computing the revised fees. CMS is now using the Aug. 23, 2006, product classification list and pricing database generated by the SADMERC. The Aug. 23rd classification list is the most current database that reflects the full and complete manufacturer applications, test results, and attestation, consistent with CMS' published requirements, and has undergone a thorough review by CMS and the SADMERC. Our comprehensive review found that later versions of the database do not meet these requirements, and so are less reliable and may reflect faulty data and attempts to manipulate prices. Examples of key data improvements include--

• Certain PMDs with questionable test-results that are produced off-shore are now eliminated from the calculations.

• CMS has ensured that data submissions by manufacturers related to PMDs (and MSRPs) that are merely under development and not yet being produced are not included in the pricing database. Some manufacturers submitted data regarding chairs that have not yet been produced and distributed but are merely design concepts for chairs potentially under development. Some believe these chairs are slated for production off-shore. Since the product was not available, testing and application results are not verifiable and, therefore, these products have been eliminated from the list.

• Undocumented test results and incomplete applications submitted without the proper attachments and attestation are now excluded.