Washington Update, July 28, 2009
American Association for Homecare
- Oxygen Update: AAHomecare Works with HME Stakeholders to Negotiate Reform
- ACTION ALERT: Promote Positive Messages but Respond to Misleading News
- AAHomecare Praises Obama for Discussing Cost-Effective Role of Homecare
Oxygen Update: AAHomecare Works with HME Stakeholders to Negotiate Reform
A leader among the influential Blue Dog Democrats, Representative Mike Ross (D-Ark.), has offered his support for oxygen reform through H.R. 3220, the Medicare Home Oxygen Therapy Act of 2009. Oxygen has never before been such a high priority for a member of Congress who is so influential.
The American Association for Homecare is working with many interested parties to address concerns expressed by provider and beneficiary groups. The Association continues to work toward consensus on some of the most important details.
During a call with HME stakeholders convened by AAHomecare last week, HME and patient groups discussed the possibility of securing a consensus on meaningful oxygen reform through compromise. AAHomecare encouraged all stakeholders to support H.R. 3220 as a first step toward a package of reforms and work together over the next month to come to an agreement on changes that might be required to achieve greater consensus. During the legislative process, numerous opportunities will arise to make changes to the legislation before the final package is sent to the president.
Please contact Stacey Harms at 703-535-1893 or email staceyh@aahomecare.org if you have questions or concerns.
ACTION ALERT: Promote Positive Messages but Respond to Misleading News
The American Association for Homecare urges home medical equipment stakeholders to deliver positive messages about the cost-effective role of homecare in their local media and also respond to media stories that perpetuate misperceptions about the cost of home medical equipment and services in Medicare and the competitive bidding program for durable medical equipment.
Several recent media stories have perpetuated misperceptions about Medicare payment issues related to home medical equipment and services, including reimbursement for medical oxygen and wheelchairs and the competitive bidding program for durable medical equipment. Specifically, misleading statements were made in a segment on CNN ("One wheelchair—one lesson of problems in health care reform," July 20), in the Wall Street Journal ("Obama's Health Expert Gets Political," July 24, and the editorial "No Help for the Blue Dogs," July 28), and in the Washington Post ("Bush Official Sees Peril in Health Plan," July 24). You can view AAHomecare's response to many of these stories on the blog, http://blog.aahomecare.org/.
Myth #1: Medicare overpays for durable medical equipment as compared to prices found on the Internet. Media stories often incorrectly suggest that the cost of properly providing a wheelchair or oxygen therapy to a Medicare patient at home should cost no more than what one would pay on the Internet for the equipment alone.
Reality : Serving frail seniors and people with disabilities in their homes requires services and other non-equipment costs. To ensure quality of care, HME providers must comply with a host of federal and state regulations and other standards of care. Costs reflect delivery, typically within hours of discharge from a hospital, set-up, patient education, maintenance, and compliance with all regulations.
Myth #2: Congress killed the bidding program, costing the taxpayers more money.
Reality: The bidding program is moving forward. It was initially delayed last year in order to address numerous flaws identified by Congress. However, taxpayers reaped the savings the bid program was projected to have saved because the home medical equipment sector paid for the delay through a nationwide 9.5 percent reimbursement reduction on all bid-upon items, which went into effect on January 1, 2009. Medicare will restart the bid process again this Fall (2009).
Myth #3: The competitive bidding for durable medical equipment is a good model for reform of healthcare.
Reality: The "competitive" bidding program in Medicare sounds good, but as designed, the program eliminates most of the providers through selective contracting (even if providers agree to lower prices), and thereby reduces access to care, patient choice, and quality of care. The initial round of bidding would have eliminated as many as 90 percent of qualified home medical equipment and service providers. It is similar to a closed-model HMO and will have the effect of government-mandated consolidation in the home medical equipment and services sector. The bid program will increase costs by complicating the transition from hospital to home, lengthening expensive hospital stays and increasing the likelihood of rehospitalizations, a major cost driver in Medicare. The severe problems with the implementation of the competitive bidding program have not been adequately addressed.
If you have questions or want assistance working with the media, contact Tilly Gambill (tillyg@aahomecare.org) or Michael Reinemer (michaelr@aahomecare.org).
AAHomecare Praises Obama for Discussing Cost-Effective Role of Homecare
The American Association for Homecare commends President Obama for highlighting the role of home-based care in controlling Medicare costs and keeping older people out of more expensive institutional care.
Discussing proposed Medicare reforms last week in Ohio, Obama said, "It is not an exercise in just cutting reimbursement rates in fact in some cases we may need higher reimbursement rates for certain aspects. I actually think home care ends up being cost-efficient in many cases rather than institutional care, and it helps keep people in their homes."
The President made the remarks at a town hall meeting on healthcare reform in Shaker Heights, Ohio on July 23.
"We applaud the President's recognition of homecare as a cost-effective alternative that reduces healthcare costs and allows millions of seniors to live in the comfort of their own homes," said Tyler J. Wilson, President of the American Association for Homecare. "We urge Congress to recognize that homecare should be a critical component — not a casualty — of healthcare reform."
Video of the President's remarks can be found here (at 2:15):
President Obama's remarks came on the heels of the American Association for Homecare's healthcare roundtable discussion on Capitol Hill last Tuesday where both former Senate Majority Leader Tom Daschle and Blue Dog Democrat Rep. Jason Altmire (D-Pa.) stressed the cost-effective role that homecare can play in the reform of the U.S. healthcare system. Peter Thomas (Consortium for Citizens with Disabilities, Health Task Force Co-Chair) and Georgie Blackburn (VP, Government Relations, BLACKBURN'S) also spoke at that event.
WE THANK OUR CORPORATE PARTNERS
American Association for Homecare
2011 Crystal Drive, Suite 725
Arlington, VA 22202
703-836-6263
www.aahomecare.org
If you would prefer not to receive further messages from this sender, please
click on the following e-mail link and send a message with or without
any text:
Click here to opt out
You will receive one additional e-mail message confirming your removal.
Posts
