Anthem Won’t Rescind or Delay HME Cuts

Despite efforts from AAHomecare, Anthem and subsidiary Amerigroup have doubled down on cuts to HME rates that go as high as 60 percent.

Anthem Inc. and its subsidiary Amerigroup have doubled down on the implementation of substantial rate cuts for HME provided to beneficiaries of its commercial and government plans in the 22 states where the payers operate.

Announced last month, the cuts range from 11 percent to 60 percent for HME. The American Association for Homecare engaged various Anthem executives, including President and CEO Gail Boudreaux, to convey how the COVID-19 public health emergency has increased costs for HME providers.

However, Anthem Vice President Leah Timmerman responded that Anthem took provider input into consideration, but decided it won’t delay or rescind the cuts.

“These rate adjustments were planned over six months ago and contractual notices alerting our DME partners of these rate adjustments were sent out well before the COVID-19 health crisis,” Timmerman noted. “In response to COVID-19, Anthem remains committed to helping our members access essential oxygen, ventilation, and other DME services needed.”

AAHomecare said it will continue to argue the industry’s case by supplying Anthem with more accurate information.

“The AAHomecare Payer Relations team plans to provide additional analysis and perspective on how Anthem’s cuts are not reflective of the current DME market and have great potential to impact patient access to quality care, especially in light of rate increases and other relief CMS and other payers have put into to place in response to the COVID-19 pandemic,” a statement from the association read.

About the Author

David Kopf is the Publisher HME Business, DME Pharmacy and Mobility Management magazines. He was Executive Editor of HME Business and DME Pharmacy from 2008 to 2023. Follow him on LinkedIn at and on Twitter at @postacutenews.

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