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Manufacturers Say PMD Product Classification List Is Inaccurate

BALTIMORE--Stakeholders said a new power mobility product classification list released by the SADMERC last week is riddled with errors, but they are hopeful that corrections will be made before prices are calculated.

The release of the list is the latest step in preparing to implement 64 new Medicare power mobility codes that are scheduled to take effect Oct. 1 (see HomeCare Monday, June 5). The product classification list, which contains each HCPCS code assignment for power wheelchairs and scooters, classifies products according to performance data and device feature information supplied by the industry's power mobility manufacturers.

A good number of the products submitted by Invacare Corp. were misclassified, according to Cara Bachenheimer, vice president, government relations, for the Elyria, Ohio-based manufacturer. "We were disappointed to see a number of our products are miscoded. But we're optimistic that the SADMERC is going to look at data and correct mistakes," she said, adding that the SADMERC indicated it would release a revised list this week.

Seth Johnson, vice president, government affairs, for Exeter, Pa.-based Pride Mobility Products, also remains positive. "We have some significant concerns, and changes need to be made before they calculate the new fee schedules," he said. "We are very hopeful that the SADMERC is going to work with us to address the problems and issue a new, accurate product classification list before the fee schedule is released."

Fee schedules for the new codes are expected to be published as part of the October 2006 DMEPOS update. Following the SADMERC's product classification list, CMS published a document containing information it has gathered to establish fee amounts for the new HCPCS codes. This document includes both the median wholesale and suggested retail prices reported by manufacturers for products under each code.

In addition to manufacturers' suggested prices, the agency said it also had obtained actual retail prices from "several reputable Internet sites that specialize in furnishing power wheelchairs and are widely used by Medicare beneficiaries and other consumers." In an explanation accompanying the pricing source list, CMS said, "Determining pricing sources that best reflect pricing on a free and open market ensures efficient pricing and better access to current technology."

CMS said it is "very interested" in receiving comments on the document and suggestions on how to obtain more information on actual retail prices.

But because the pricing source list is based on the product classification list, mobility stakeholders noted, this document also is incorrect and needs to be reissued.

However, this shouldn't stop people from commenting, Johnson said. "It's still necessary for providers and stakeholders to provide comments on why some of these categories are not appropriate to be considered when you're talking about calculating Medicare fee schedule amounts."

To view the product classification list, click here. To download the pricing source document, click here.

Comments on the pricing sources can be submitted via e-mail to Michael.Rich@cms.hhs.gov by Aug. 25.

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