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Industry Organizations Urge Support of 2025 Supplemental Oxygen Access Reform Act
The House and Senate bills would remove oxygen services and equipment from Medicare’s competitive bidding program.

April 22, 2025 by Laurie Watanabe

More than 30 industry, health-care professional, and patient organizations are urging support for the Supplemental Oxygen Access Reform Act (SOAR) of 2025.

As noted by the American Association for Respiratory Care (AARC) in an April 10 announcement, H.R. 2902 was reintroduced to the U.S. House of Representatives by David Valadao (R-Calif.), Julia Brownley (D-Calif.), Adrian Smith (R-Mo.) and Gabe Evans (R-Colo.). In the U.S. Senate, S. 1406 was introduced by Senators Bill Cassidy, M.D. (R-La.), Mark Warner (D-Va.), and Amy Klobuchar (D-Minn.).

“More than 1.5 million people across the U.S. face unparalleled challenges in accessing oxygen which their lives depend on,” the AARC announcement said. “These roadblocks are largely caused by an inadequate Medicare reimbursement system, and lack of access to the skills respiratory therapists can provide to oxygen-dependent patients. The SOAR Act would help address these issues. The SOAR Act would establish a new payment methodology for liquid oxygen, and for supplemental oxygen patients to access respiratory therapists.”

AARC added that due to “budget constraints,” the 2024 version of the bill didn’t pass during the 118th Congress.

Removing oxygen from Medicare competitive bidding

On April 18, the American Lung Association, in collaboration with several medical societies including the American College of Chest Physicians (CHEST), sent a letter to Congress to support supplemental oxygen access reform.

“The bill aims to remove all oxygen services and equipment from competitive bidding reimbursement, which has led to high costs for patients and a lack of access to portable high-flow oxygen,” CHEST said in an April 18 announcement about the letter. “Changing this requires the creation of a new reimbursement system so that patients can access the appropriate modality of oxygen that they require.”

“Since 2011, supplemental oxygen has been part of Medicare’s DMEPOS competitive bidding program, resulting in significant decreases in payments for oxygen equipment and supplies,” the letter to Congress said. “While this has produced Medicare savings, it has also led to unacceptable barriers for patients who need medically necessary oxygen equipment, supplies and services.”

The organizations pointed out that patients with the most significant oxygen needs “cannot use small, portable oxygen concentrators (POCs) because they do not provide high flow rates. Instead, these individuals must rely on heavy, bulky tanks of compressed, gaseous oxygen that may provide only a few hours of oxygen at a time.”

The letter to Congress advocated for the use of liquid oxygen instead, “which offers a continuous, high-liter flow of oxygen and is portable.”

“However, due to the inadequate reimbursement rates, suppliers have been unable to continue providing liquid oxygen widely, leaving patients with few viable options. Without access to appropriate supplemental oxygen, patients are at higher risk for worsening health, avoidable emergency room visits, hospitalizations and the devastating prospect of being homebound.”

The letter said the new House and Senate bills would make supplemental oxygen “patient-centric, moving away from ‘home’ oxygen to ‘supplemental oxygen.’ The bill would remove all oxygen services and equipment from the competitive bidding reimbursement system and create a new reimbursement system for this benefit based on current payment rates so that people can access the appropriate modality of oxygen.”

The bills would help patients with chronic obstructive pulmonary disease (COPD), heart disease, pulmonary hypertension, pulmonary fibrosis, and other advanced and chronic respiratory diseases. “This bill also addresses challenges faced by low-income and rural and medically underserved people who currently struggle to secure adequate care,” the letter said.

In addition to AARC, the American Lung Association, and CHEST, organizations supporting the bills include the American Association for Homecare (AAHomecare), the American Academy of Sleep Medicine, the American Physical Therapy Association, the COPD Foundation, the Cystic Fibrosis Foundation, and VGM & Associates.

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