WASHINGTON, DC – U.S. Senator Pat Roberts joined Senators Orrin Hatch (R-UT) and Kent Conrad (D-ND) in introducing a bill to preserve access to home medical equipment in rural areas.

"Seniors in rural areas rely on our home health providers to provide high quality care at an affordable price, and it is critical that we preserve patient access to this high quality care. Unfortunately, the competitive bidding program currently being implemented for Medicare home health equipment threatens patient access and could put many of our small ‘mom and pop’ home health providers out of business," Senator Roberts said.

"Seniors in rural areas rely on our home health providers to provide high quality care at an affordable price, and it is critical that we preserve patient access to this high quality care. Unfortunately, the competitive bidding program currently being implemented for Medicare home health equipment threatens patient access and could put many of our small ‘mom and pop’ home health providers out of business," Senator Roberts said.

The Medicare Modernization Act mandated a shift in reimbursement policy for durable medical equipment (DME) in Medicare to a competitive acquisition program. The Senators’ bill, called the Medicare Durable Medical Equipment Access Act of 2007, revises this program in the following ways:

The Medicare Modernization Act mandated a shift in reimbursement policy for durable medical equipment (DME) in Medicare to a competitive acquisition program. The Senators’ bill, called the Medicare Durable Medical Equipment Access Act of 2007, revises this program in the following ways:

• Improves Quality Standards: requires the Secretary to consider quality standards before implementing competitive acquisition. This ensures that beneficiaries are not forced to use the lowest-cost provider without consideration of the quality of medical equipment items provided. Currently, quality standards could be waived to expedite the acquisition.
• Rural Exemption: requires the Secretary to exempt metropolitan statistical areas (MSAs) with fewer than 500,000 people.
• Protections for Small Providers: allows applicable small businesses that did not receive a contract to continue to provide DME in Medicare at the competitively bid rate.
allows applicable small businesses that did not receive a contract to continue to provide DME in Medicare at the competitively bid rate.
• Appeals: restores appeal rights regarding bid amounts or contracts for competitive acquisition of DME.
restores appeal rights regarding bid amounts or contracts for competitive acquisition of DME.
• Cost Savings: requires the Secretary to show that competitive acquisition would result in savings of at least 10 percent before the program can be implemented.
requires the Secretary to show that competitive acquisition would result in savings of at least 10 percent before the program can be implemented.

"It is critical that our reimbursement policies don’t penalize patients in areas with less population or penalize our small businesses who have served our rural areas for years," Roberts said. "This legislation will ensure continued rural access to medical equipment on which Medicare patients depend."

Senator Roberts is a member of the Senate Committee on Finance and the Senate Committee on Health, Education, Labor and Pensions.