New Medicare Policy Will Slow Growth of Home Care Products says Report
New Medicare policies will hurt the growth of home care products such as wheelchairs and oxygen systems according to a new report from Kalorama Information.
The company estimates that U.S. home care product revenues now exceed $5 billion and will grow at a compound annual growth rate of 4% for the next five years. While growth will continue to occur, it will grow at a slower rate according to Kalorama.
“A few years ago, we had anticipated 7% growth, but CMS competitive bidding policies have dampened the increase in revenues,” said Bruce Carlson, Publisher of Kalorama Information.
The bidding policies implemented by CMS require that beneficiaries receive their devices from certain suppliers who bid on contracts to supply the equipment.
The Obama administration said last month that it would expand the use of the competitive bidding system after a one year experiment saved money for taxpayers and patients. Kalorama Information says that most categories will be impacted by CMS competitive bidding, which will significantly decrease reimbursement rates.
An estimated 20 million people received home health care from either professional or unpaid caregivers, and most of these individuals also used associated home care products such as home medical equipment, infusion and oxygen therapy products, and miscellaneous general supplies.
Written by John Yedinak