Battle building in Congress over oxygen's cost to Medicare
By Rob Hotakainen | McClatchy Newspapers
* Posted on Friday, April 4, 2008
WASHINGTON —
If you have respiratory problems, Medicare allows you to rent oxygen equipment, which costs $7,215 for three years. But here's the kicker: If you bought the equipment, it would cost $587.Congress passed a law requiring a 36-month cap on renting equipment after the Department of Health and Human Services' inspector general put a spotlight on the disparate costs. After Jan. 1, 2009, Medicare beneficiaries who have been renting their equipment for three years will own the equipment, and the medical suppliers will get no more payments.
The Bush administration wants to go further, capping rental payments after 13 months. Even by limiting rental payments to 36 months, the inspector general said, Medicare and its beneficiaries will continue to pay more than 12 times the purchase price for the equipment. The inspector general's report said Medicare could save $3.2 billion over five years by limiting rental payments for oxygen concentrators to 13 months.
Home oxygen suppliers, who are watching the values of their companies decline because of the upcoming uncertainty, are crying foul. And their protests are winning sympathy on Capitol Hill.
Critics argue that transferring ownership would be a mistake. Hundreds of small providers would be driven out of business, they say, and the elderly no longer would have their equipment serviced by the medical suppliers.
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