Reacting to 2005 Medicare and Medicaid Services Fees, USA

The American Association for Homecare (AAHomecare) today emphasized the importance of legislation to repeal cuts to
certain durable medical equipment (DME) mandated by the Medicare Modernization Act of 2003 (MMA) in light of the 2005 fee
schedule, which included expected cuts required by MMA.



The Centers for Medicare and Medicaid Services (CMS) posted the 2005 fee schedule for durable medical equipment and
prosthetics/orthotics and supplies (DMEPOS) on its website, which showed that the reimbursement levels for 2005 will be
adjusted to the median Federal Employee Health Benefits Program level (FEHBP), per MMA.



The DME items affected by the cuts announced by CMS include nebulizers, hospital beds, air mattresses, manual wheelchairs,
lancets, blood glucose test strips, and power wheelchairs. CMS said reimbursement for oxygen would be announced in December.




"We continue to be concerned about the harmful effects of reimbursement rates on our providers who care for millions of
homecare patients nationwide," stated Kay Cox, President and CEO of AAHomecare. "We urge Members of Congress to cosponsor the
Hobson-Ford bill, H.R. 4491, which would repeal these cuts. At the same time, we work continuously with CMS and the Office
of Inspector General to ensure that oxygen reimbursements are fair and accurate."



During the past two days, an additional nine Members of the House of Representatives have been added to the cosponsor list
for H.R. 4491, bringing the total to 113.



AAHomecare notes the significant differences between the FEHBP plans' primary patient population, which is younger and
healthier than the Medicare patient population. FEHBP plan payments do not reflect the additional costs associated with
furnishing necessary services and equipment to the Medicare population. Also the FEHBP plans (and other payers) have
different and less stringent claims processing and documentation requirements than the Medicare program. AAHomecare believes
that ensuring access to quality, cost-effective healthcare should be the foundation for Medicare policy affecting care
received in the home.



Homecare provides tremendous value for Americans' healthcare dollar. AAHomecare is the only national association that
represents every line of service in the homecare community, including home health and home medical equipment providers,
respiratory and infusion therapy, telemedicine, and rehab and assistive technology. Representing more than 3,000 member
locations nationwide, AAHomecare is dedicated to advancing the value and practice of quality, cost-effective health care
services where consumers prefer them - at home.




Michael Reinemer

Vice President, Communications

American Association for Homecare

625 Slaters Lane, Suite 200

Alexandria, VA 22314-1171

703-535-1881

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