TENS, CPAP devices see biggest hits in Round 1 2017

Friday, September 16, 2016

WASHINGTON – HME providers will see an overall reduction in Medicare reimbursement of 5.2% from the Round 1 re-compete to Round 1 2017, according to an analysis by AAHomecare.

The products with the biggest decreases in reimbursement when the latest iteration of the program goes live on Jan. 1, 2017: TENS devices at 45.1%, followed by CPAP devices at 18.5%.

On the flip side, the products with the biggest increases in reimbursement: manual hospital beds at 9.8% and nebulizers at 6.8%.

The areas that will be hardest hit as part of Round 1 2017 are Cincinnati, with an overall reduction across products of 9.3%; followed by Covington-Florence-Newport, Ky., with a reduction of 8.4%.

The area that will be hit the least hard: Riverside-San Bernardino-Ontario, Calif., which will see an overall increase of 1.7%; followed by Charlotte-Concord-Gastonia, N.C., which will see an overall decrease of 1.3%.

CMS announced new reimbursement for Round 1 2017 on Sept. 8. The agency is now in the process of extending 1,523 contract offers to 198 providers. It says small providers make up 46% of those offered contracts.

CMS plans to announce the providers who accepted contracts this fall.

Providers saw an overall reduction in reimbursement of 37% as part of the Round 1 re-compete.