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Federal Study on Power Wheelchair Costs in Medicare Is Misleading and Ignores Costs of Required Services for Beneficiaries
Date:9/3/2009

e dropped dramatically. As a result, it is becoming increasingly difficult for the rehab provider to continue to provide items and services to seniors and people with disabilities. It's also worth noting that today there are new medical policies, updated quality standards, and surety bond and mandatory accreditation requirements in place - which have increased operating costs - that did not exist in 2007."

Over the past five years, Congress has reduced power wheelchair pricing by more than 35 percent. These cuts include the following:

  • A 9.5% cut to reimbursement was included in the 2008 Medicare Improvements for Patients and Providers Act of 2008, which delayed the bidding program;
  • Inflation updates for power wheelchair payments were eliminated from 2004 to 2009;
  • Reimbursement fell an average of 27 percent as a result of fee schedule changes in November 2006; and
  • There was an approximately three percent reduction to fee schedule prices in 2005.

Economic conditions, rising prices, and lower Medicare rates have taken a heavy toll on the power mobility community, which have resulted in layoffs and contractions in the power mobility sector.

"The Association believes that it is inappropriate for the OIG to infer that providers are making significant high profits," said Wilson. "We stand ready to work with the OIG to conduct a more thorough and useful analysis of the service-related costs of providing power wheelchairs to Medicare beneficiaries."

The American Association for Homecare represents durable medical equipment providers, manufacturers, and other organizations in the homecare community. Members serve the medical needs of millions of Americans who require oxygen equipment and therapy, mobility assistive technologies, medical supplies, inhalation drug therapy, home infusion, and other medical equipment and services in their
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SOURCE American Association for Homecare
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