American Association for Homecare. The rates are effective April 1.
Congress introduced Budget neutrality as part of the Deficit Reduction Act, and CMS applied it in 2006 by lowering reimbursement for stationary oxygen equipment to offset the increased use of oxygen-generating portable equipment (OPGE). In 2019, CMS expanded that application to the entire oxygen product category.
“Budget neutrality applies an additional reimbursement cut to oxygen products that already underwent a cut from competitive bidding,” a statement from AAHomecare read. “This fix on oxygen payment policy comes after five years of persistent advocacy to Congressional offices and CMS.”
Some changes in the April rates from the adjusted January 2021 rates:
- CBAs – 10 percent increase on average, ranging from 8 percent to 11 percent.
- Non-Rural Areas – 5.1 percent increase on average, ranging from 4.9 percent to 5.4 percent.
- Rural Areas – 4.9 percent increase on average, ranging from 4.7 percent to 5.2 percent