More than 40% of Providers Have Abandoned Medicare Since July 2013

AAHomecare study of Medicare data also shows number of unique locations dropped by 38.7% during the same period.  

According to research AAHomecare had been performing using Medicare data, the number of traditional suppliers of home medical equipment to Medicare beneficiaries has dropped 40.9% since July 2013.

A total of 40.9 percent of traditional HME providers previously serving Medicare beneficiaries have dropped out of the Medicare program since July 2013, according to research on Medicare data conducted by the American Association for Homecare.

Additionally, the number of unique provider locations serving Medicare beneficiaries dropped by 38.7 percent during the same period.  

“This drastic loss of suppliers is impacting Medicare beneficiaries’ access to critical home medical equipment and services, and the situation is sure to become even more dire without more sustainable reimbursement policy for HME,” a statement from the association read. “This data paints a stark picture of the effects of the bidding program, which went into widespread effect in July 2013, on the HME infrastructure serving HME beneficiaries across the nation, in both bidding areas as well as rural locations.”

The drop off in the number of providers serving Medicare patients increased with the national expansion of competitive bidding-derived pricing to non-bid areas in 2016, which resulted 26.3 percent decline in the number of of providers, and a 23.3 percent reduction in the number of unique locations, according to the association.

In comparison, total Medicare enrollees have increased by 8.6% from 2013 to 2016, according to data from CMS.

The association noted that it will highlight its findings in its legislative and regulatory efforts. As AAHomecare’s May 24-25 Washington Legislative Conference approaches, the association encouraged providers to reference the data in their advocacy efforts.

The association also highlighted its Issue Brief on effects of the bidding program on the HME supplier infrastructure as an additional resource. 

About the Author

David Kopf is the Executive Editor of HME Business and DME Pharmacy magazine. Follow him on Twitter at @postacutenews.


Fri, Apr 28, 2017 West Virginia

Why did AAHomecare fail to mention in the background section of their issue brief that is was the ACA that mandated the bid rates to go nationwide and it was the ACA that mandated the expansion of the number of CBA's ??? I want to know!!

Fri, Apr 28, 2017 New Orleans, LA

It appears CMS is achieving their objective of less suppliers to deal with. While beneficiaries may suffer and suppliers go out of business, the bureaucracy is what is important.

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