WASHINGTON--The industry's worry meter flew past the red zone last week as federal lawmakers hashed out the nation's spending bills, including committee debates on health care legislation, and, in the process, brought a reduced oxygen rental period and elimination of the first-month purchase option for power wheelchairs back into play.

An update from the American Association for Homecare reported that in the wee hours Friday morning, the House Ways and Means Committee approved its version of the Children's Health and Medicare Protection Act of 2007 (H.R. 3162), which would reduce the oxygen cap period from 36 to 18 months. Referred to as the CHAMP Act, the measure would maintain the 36-month rental period for oxygen-generating portable equipment. Transfer of ownership of oxygen equipment to the beneficiary would be subject to these limits.

Another provision in the bill would eliminate the first-month purchase option for power wheelchairs.

The proposed legislation would expand spending on the State Children's Health Insurance Program, which covers 6 million low-income children whose families don't qualify for Medicaid, by about $50 billion. AAHomecare said that instead of increasing tobacco taxes enough to pay for the changes, the legislators instead decided on reimbursement cuts to DME.

Congress has already reduced Medicare reimbursement for oxygen therapy by nearly 50 percent over the past 10 years, the association pointed out. And because many power wheelchairs are individualized for the patient, eliminating the first-month purchase option would severely curtail beneficiary access as suppliers would be unable to cover the significant up-front service costs.

Earlier this year, AAHomecare said more than 95 percent of all PWCs are purchased in the first month because beneficiaries who meet the coverage criteria have long-term life needs; it makes little sense to rent the equipment.

"Both oxygen therapy and power wheelchair reimbursement have suffered numerous reimbursement reductions, which already threaten to erode patient access and quality of care," said Tyler Wilson, AAHomecare president and CEO.

A reduction of the oxygen cap to 13 months and elimination of the PWC purchase option surfaced in President Bush's budget proposal for 2008, released in February. (See HomeCare Monday, Feb. 12.)

Meanwhile, the House Energy and Commerce Committee, which shares jurisdiction with Ways and Means over the SCHIP program, is still working on its version of the CHAMP bill. The Senate is also scheduled to begin debate this week on its own $35 billion expansion of SCHIP.

To help get the oxygen cuts removed from the legislation and the PWC first-month purchase option added, AAHomecare and other industry groups have issued an urgent call to action. For talking points and telephone scripts for calls to members of Congress, visit the AAHomecare Web site at www.aahomecare.org or The VGM Group Web site at www.vgm.com.