Legislation Aims to Strengthen Rates for HME Providers

S 2951 looks to establish a blended Medicare reimbursement rate for durable medical equipment providers in noncompetitive bidding areas

By Michelle Love

Legislation to strengthen rates for a large segment of home medical equipment (HME) suppliers was introduced in the United States Senate in October. The bill, S 2951, would establish a 75/25 blended Medicare reimbursement rate for durable medical equipment, prosthetics, orthotics, and supplies (DMEPOS) in nonrural/noncompetitive bidding areas through the end of 2025.

The Senate bill is a companion to HR 2005, also known as the DMEPOS Relief Act of 2025, and was introduced earlier this year in the House, which directed the Secretary of Health and Human Services to provide for certain adjustments to Medicare payment for items that were formerly included in round 2021 of the DMEPOS competitive bidding program. The new legislation is sponsored by Sens. James Lankford (R-OK) and Maggie Hassan (D-NH), who both serve on the Senate Finance Committee. At press time, movement on the bill had been paused due to the government shutdown, but a full text of the bill’s contents will be made available as ready, according to congress.gov.

Industry Feedback

“The introduction of S 2951 marks a pivotal moment for stakeholders who have long advocated for Senate action. Finding a Democratic cosponsor for the Senate bill was a challenge that took time and persistent outreach. Senator Hassan’s support now gives the bill a stronger chance of advancing through committee and eventually reaching the Senate floor. … Special thanks go out to the dedicated DME suppliers and industry stakeholders who worked tirelessly behind the scenes to help secure bipartisan support for this legislation. Their collaboration with the offices of Sens. Lankford and Hassan was instrumental in moving the DME Relief Act forward and ensuring the voices of providers and patients were heard.”

—VGM & Associates Government Relations

“This new legislation allows us to now advocate for the significant rate relief in both Houses of Congress. We need to build awareness and bring more co-sponsors on board for both the new Senate bill and also for the House companion, HR 2005. Right now, we have several major issues in play that could potentially re-shape our industry. With the likely return of the bidding program, a threat of new tariffs stemming from a Section 232 inquiry, implementation of an updated oxygen national coverage determination (NCD) and our continued efforts for relief in nonbid/nonrural areas, there’s never been a bigger need for the HME community to respond with vocal and unified advocacy on our policy priorities. We have some tremendous challenges ahead. AAHomecare isn’t backing down from any of them, and I know the great leaders and advocates in the HME community aren’t backing down, either.”

— Tom Ryan, American Association for Homecare (AAHomecare) president & CEO.

Contact Your Senators

Both VGM and AAHomecare have encouraged DMEPOS providers and patients to contact their senators to encourage the bill moving forward.

Click here for a list of your senators

Michelle Love is associate editor for HomeCare Media.

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