The Centers of Medicare & Medicaid Services (CMS) published the April 2021 DMEPOS fee schedule. This schedule includes the new oxygen rate that will begin on April 1, 2021. The new fee consists of a 5%-11% rate increase in oxygen products across the country.
Budget Neutrality Excluded
The rate increase excludes the application of budget neutrality. This solution comes after five years of advocacy on the part of AAHomecare and Industry leaders to Congressional offices and CMS.
More information on budget neutrality:
- Helps to offset the increased use of oxygen-generating portable equipment with lower reimbursement for stationary equipment.
- In 2019 CMS expanded the budget neutrality.
- The CMS expansion applies to the whole oxygen product category.
- Applies additional reimbursement cuts to oxygen products that were already cut from competitive bidding.
April Changes Compared to January 2021 Rates
Here are the changes compared to the adjusted January rates. The rate increase begins April 1, 2021.
Competitive Bud Area (CBA)
10% average increase – ranging from 8%-11%
Non-Rural Areas
5.1% average increase – ranging from 4.9%-5.4%
Rural Areas
4.9% average increase – ranging from 4.7%-5.2%
More Information
Download the AAHomecare’s fee schedule comparison (Excel File)
Read CMS’ official fee schedule
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