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California HME Update

Act Now to Stop the Pending Medi-Cal DME Cuts
 
CAMPS Continues To Push for Changes to Medi-Cal DME Reimbursement

The Assembly Budget Sub-Committee # 1 will be meeting this Tuesday afternoon to vote on the Medi-Cal DME proposals CAMPS is sponsoring that would stop the impending dramatic Medi-Cal rate reductions. Current law requires that Medi-Cal reimburse DME items at either 80% of the comparable Medicare rate for most DME and 100% of Medicare for custom rehab equipment and accessories. In addition, due to provider rate reductions from 2011 those rates were further reduced by 10%.
 
DHCS has filed a State Plan Amendment that would change reimbursement to be 80 or 100% of the Medicare non-rural rates that would utilize the much lower Medicare CB rates. If the SPA were to be approved by CMS later this year it would then be applied retroactively to 1/1/19. You can go to www.campsone.org to see all the details and guide you in reaching out to key legislators to ask them to provide our requested relief. Other organizations like the Ca. Children's Hospital Assoc., the Children's Specialty Care Coalition, Western Center on Law and Poverty are in support of our budget change requests. Those requests are;

  1. Amend Welfare and Code section 14105.48 to establish that all categories of DME be reimbursed at 100% of the lowest maximum allowance for California for Medicare. In the case of DME where the rate is established under the Medicare Competitive bidding program the rate shall be based on the average rate between rural and non-rural areas. DHCS in its State Plan Amendment filed and pending approval the cost savings by using the current 80% of Medicare was $3.7 Million.
  2. Eliminate the current 10% Provider rate cut
  3. Require the Medi-Cal program when reimbursing for custom rehabilitation equipment when reimbursing using 100% of the Medicare rate to recognize the KU modifier and increase reimbursement according to the applicable Medicare rate. We are not able to determine the cost impact but assume it is small and less than $3 million.
 
Please email or call these Assemblymembers before Tuesday afternoon. Ask them to support the changes CAMPS has put forward.




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