WASHINGTON—House Representatives Mariannette Miller-Meeks (R-IA), Paul Tonko (D-NY) and Randy Feenstra (R-IA) are asking colleagues in the House to join a sign-on letter to the Centers for Medicare and Medicaid Services (CMS) that aims to reestablish the Medicare 75/25 blended rate for durable medical equipment (DME) in non-rural and/or non-competitive bid areas for 2025.
The letter, released on Capitol Hill, addresses CMS actions taken in the past to ensure access to DME, including applying the 50/50 blended rate for home medical equipment (HME) in rural areas on a permanent basis. The letter highlights the disconnect between DME Medicare rates and the rising costs suppliers face.
“DME suppliers and the patients they serve have faced higher delivery and labor costs due to inflation,” the letter says. “We are concerned that CMS, after pausing the competitive bidding program, has not updated payment rates and is still using 2016 pricing methodologies that do not account for today’s increased costs. This is compounded by the expiration of the 75/25 blended rate, which provided stability by recognizing outdated bid pricing. The 75/25 blended rate policy ensured continued access to DME and related homecare services which are now threatened for millions of Americans. We understand that companies have had to lay off employees and consolidate offices, leaving patients with reduced access and longer wait times for vital care which is often delivered in the home.”
The above paragraph is supported in the letter with links to survey data, as well as infographics from the American Association for Homecare (AAH) and the Health Industry Distributors Association (HIDA). The links are listed below.
- AAH 75-25 impact survey report
- AAH oxygen costs infographic
- AAH/Dobson DaVanzo “Impact of COVID-19 Supply Chain Disruptions and Increased Costs on DME Suppliers”
- HIDA supply chain pressures/costs infographic
