What Effect Will the New Administration have on Complex Rehab and Home Health Equipment Industry?

Take Action & Be Heard!

As promised, I am sharing part of the latest legislative update from NCART:

The November 4 election marks a change in the executive branch of government and its effect on the HME industry and complex rehab is unknown. President-elect Obama has not addressed the issue of HME and his selection of Department of Health and Human Services Secretary and CMS administrator will be key. Health care reform is a top priority for President-elect Obama and Democrats in Congress have said they are committed to making a comprehensive effort to reform our health care system. Work is currently underway to lay for foundation for legislation next year.

Under President-elect Obama’s proposal, most individuals would continue to receive coverage through their employer. Individuals who are uninsured would have access to a new public plan – modeled on the current federal plan for federal workers, or to private coverage through a “National Health Insurance Exchange.” This Exchange would also reform the private insurance market, incorporating a ban on excluding coverage due to health status. The plan includes a “pay or play” mandate for employers to provide insurance or contribute a percentage of payroll toward the cost of the national plan. Small businesses would be exempt from this mandate and would receive tax benefits to help purchase coverage.

President-elect Obama’s proposal includes an array of health system changes to improve quality, reduce waste and drive down health care costs. Proposed system changes include the use of comparative effectiveness research, disease management and care coordination, preventing Medicare waste and fraud, and increasing competition in the insurance and drug industry. Many elements of these reforms have support from Democrats and some Republicans.

Medicare is likely to be a big part of the debate. Many Democrats believe coverage through a public program is part of the solution for the uninsured and many leading Democrats have sponsored legislation that would allow individuals to “buy-in” to Medicare. Congress could also turn to Medicare savings as a way to finance health reform. President-elect Obama and many Democrats have called for reductions in payments for Medicare Advantage and for Medicare prescription drugs, among others. Any of the proposals for Medicare savings debated by Congress in 2007 and 2008 could be on the table, including the elimination of the first month purchase option for power wheelchairs.

Sen. Baucus (D-MT), chair of the Senate Finance Committee, expects to release this week his options for health care reform, and Sen. Kennedy (D-MA), chair of the Senate’s Health, Education, Labor and Pension Committee has been working on a proposal also. NCART will monitor these efforts at comprehensive health reform and advocate for more reasonable reimbursement of complex rehab and to avoid policies and programs that could potentially harm people with disabilities who need complex rehab technology.

Other health care legislation to be considered in 2009 includes the reauthorization of the SCHIP program which expires in March, and legislation to “fix” the current physician reimbursement reduction scheduled to go into effect in September. These two pieces of legislation, in addition to health reform legislation, are possible vehicles for attaching a proposal to eliminate the 9.5 percent reduction for complex power wheelchairs.

2009 is quickly approaching, now is not the time to sit back and wait to see what direction the new administration and Congress will take Complex Rehab and the HME industry. Now is the time to be vocal and let your Legislators know what you (either as providers of Complex Rehab, or consumers of these devices) need!

What actions are you taking to be proactive? How are you making your voice heard?