Home Health & Hospice Week

Reimbursement:

Oxygen Rates To Drop 12%

The HHS Office of Inspector General has finally completed its study on Medicare oxygen rates, and it appears oxygen suppliers are headed for rate cuts of up to 12 percent very soon.

The OIG found average Federal Employee Health Benefit Plan median payment rates are 12.4 percent lower than average Medicare rates for stationary oxygen equipment and 10.8 percent lower for portable equipment, says a report released March 30.

In the Medicare Modernization Act, Con-gress mandated the cuts to five oxygen HCPCS codes to 2002 FEHBP levels. The oxygen cuts first pegged at up to 20 percent were supposed to take effect Jan. 1, but were delayed while the OIG studied pricing further (see Eli's HCW, Vol. XIV, No. 3).