Early results of a July survey launched by the American Association for Homecare (AAHomecare) have revealed home medical equipment (HME) businesses deeply wounded by January’s expiration of the so-called 75/25 funding relief rate.
In a July 24 update, AAHomecare shared selected comments from some of the 121 HME suppliers who took the survey, which asked how the end 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 added that it is continuing to analyze survey results, but shared “examples of the open-ended responses” it received.
The common thread among the shared survey comments was that current funding rates are endangering these suppliers’ abilities to meet the needs of patients — and the ability to stay in business at all.
“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 participant 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 the products and services they provide 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.”
