Early results of a July survey from the American Association for Homecare (AAHomecare) showed that home medical equipment (HME) businesses have been deeply wounded since the January expiration of the 75/25 funding relief rate.
In a July 24 update to stakeholders, AAHomecare shared a sampling of comments from the 121 HME suppliers who took the survey. The survey asked how the expiration of the 75/25 blended funding rates in non-competitive bidding, non-rural areas “is affecting business operations and the ability to serve patients and communities.”
The association said that it is continuing to analyze survey results and that the comments shared on July 24 are “examples of the open-ended responses.”
The suppliers’ comments all noted that current funding rates were making it more difficult for them to effectively meet the needs of patients, as well as suppliers’ ability to keep their doors open.
“Reimbursements are so low now that it is hard to keep up with expenses and payroll,” one comment said. “We may have to close.”
“The rate cuts have cost our company an average of $55,000 per month and going up as more and more payers are using the new rates, both rural and non-rural patients,” another survey respondent said. “This is putting us into the red instead of being slightly profitable.”
Additional survey respondents noted that current funding “is not sustainable” or noted that they are limiting products and services to try to maintain adequate margins. “Our business has been forced to lay off employees [and] turn away high-usage oxygen patients,” a supplier said.
“I have been in this industry for over 35 years and I am not encouraging my children to continue with it,” another comment read.
“AAHomecare sincerely appreciates your candor and openness in sharing your experiences — and we’re more determined than ever to make sure policymakers understand how rates that do not reflect market reality are impacting you and your patients,” the bulletin said.
“We will be using your responses to help develop new advocacy materials to share with Congress and CMS [Centers for Medicare & Medicaid Services] in support of restoring the 75/25 blended rates. We look forward to working with you all to secure the relief the HME community needs in the near-term and more sustainable rates for all segments of our industry beyond that.”
