Declining Medicare reimbursement for home medical equipment has led to unsustainable challenges for many suppliers, threatening patients’ access to necessary home care devices, according to a new survey conducted by the American Association for Homecare.
At the beginning of 2024, the Centers for Medicare & Medicaid Services sunsetted a relief rate program for HME supplies, which led to significant reimbursement reductions for providers, according to AAHomecare. The association surveyed more than 100 of those suppliers on the effects of the expired relief program and found that a large share have had to reduce their service area, product offerings or staff levels to stay afloat.
More than 65% of respondents indicated that they have had to reduce the amounts or types of HME products offered to HME beneficiaries as a result of the relief program’s expiration, according to the survey. Roughly 53% said they have had to reduce staff, and 45% said they have had to reduce their service area as a result of the cut. More than 1 in 10 respondents said they are actively considering closing their business due to the unsustainable rate pressures.
AAHomecare solicited comments about those reimbursement challenges from survey respondents.
“Due to the rate cuts, we have had to make significant reductions in volume of services and staff, with the fear of possibly having to shutter our doors completely if the rates are not restored,” one said. “We have been and are on track to lose large amounts of money each week because of the volume of customers we have on FFS Medicare whose payments have been impacted by the reduction.”
Those cuts have jeopardized many peoples’ access to HME supplies that enable aging in place, the association said. Almost 17% of respondents said they are no longer serving Medicare beneficiaries for some HME products, and 12% indicated they have stopped taking Medicare assignments. As a result, a growing number of beneficiaries have to pay up front for some expenses related to HME.
The association called for Congress to take immediate action to preserve peoples’ access to HME.
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