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CMS PROPOSES RULE ON PAYMENTS FOR HOME-USE OXYGEN EQUIPMENT

August 3, 2006

The Centers for Medicare & Medicaid Services (CMS) recently proposed payment changes for home-use oxygen equipment, oxygen contents and capped rental durable medical equipment.

Specifically, the CMS wants to establish separate payment classes for:

New technologies that eliminate the need for refilling and delivery of oxygen contents;

Delivery of portable oxygen contents; and

Delivery of stationary oxygen contents.

The rule provides Medicare reimbursement for up to 36 months of continuous equipment rental, after which the supplier would transfer the device title to the beneficiary.

The proposal includes additional requirements for device suppliers, including:

A supplier providing rented oxygen equipment would have to continue furnishing the item throughout the entire rental period; and

Suppliers would not be allowed to switch out equipment except under specified circumstances.

The proposed rule can be viewed at www.cms.hhs.gov/apps/media/press/release.asp?Counter=1917 (http://www.cms.hhs.gov/apps/media/press/release.asp?Counter=1917).