AAH: HME spending ‘not out of control’

Friday, January 11, 2013

WASHINGTON – New national health expenditures data released by CMS shows that HME continues to shrink as a proportion of total Medicare spending, according to a bulletin from AAHomecare. The 2011 data reveal that while Medicare spending is increasing, HME spending dipped to about 1.39% of total Medicare spending—the lowest percentage in the past 10 years, the association states. Across the entire healthcare system, HME spending increased by 5.42%, from $36.9 billion to $38.9 billion, reflecting a growing demand for HME and related services. “So again, it is clear that HME spending in Medicare is not ‘out of control,’” the bulletin states. “In fact, as policies continue to squeeze HME reimbursements, Medicare spending on HME is likely to remain nearly flat and continue to fall as a proportion of total spending, even in the face of increasing demand.”