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Anthem eyes steep rate cuts

Anthem eyes steep rate cuts

WASHINGTON - Anthem and its subsidiary, Amerigroup, have proposed rate reductions of between 11% and 60% for home medical equipment, AAHomecare reports.

The proposed reductions would include commercial and government plans across 22 states, according to the association.

In a letter to Anthem President and CEO Gail Boudreaux, AAHomecare asks for a delay to the cuts, citing new cost structures due to the current public health emergency.

“This is a time of crisis for our country and our health care infrastructure,” the association states. “Any rate reductions for DME under these conditions will cause significant hardships for DME suppliers and impact access to care for patients.”

A recent survey by AAHomecare found, among other challenges, increased costs for PPE (85%), oxygen equipment (67%), ventilators (48%), hospital beds (47%) and complex rehab technology (19%).

AAHomecare has also shared its concerns with the National Association of Insurance Commissioners, and will reach out to state Medicaid directors where applicable.


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