On Thursday, December 2, 2021, The Centers for Medicare & Medicaid Services (CMS) released the fee schedule adjustments for the DMEPOS 2022 calendar year. The exact changes will depend on whether the item is part of the competitive bidding program (CBP) or the former competitive bidding areas (CBAs). Below is a breakdown of what you can expect with the adjustment.

CBP items in former CBAs: +5%
CBP items in non-CBAs: +5.4%
Non-CBP items: +5.1%

This report is excellent news for the DME industry since these changes come at a time during product price increases and last year’s low inflation adjustment of less than 1% (typically adjustments for DME are between 1% – 3%).

What You Can Expect In 2022

While these pricing accommodations will provide some relief, they’ll be short-lived if Congress doesn’t act soon. The impending 4% PAYGO-driven cuts will cancel these increases unless Congress extends the 2% Medicare sequester pause until the current public health emergency ends.

It’s imperative that we, as an industry, make sure Congress and other lawmakers hear our concerns. We appreciate AAHomecare for keeping the industry updated on these changes and what we need to do moving forward.

Adjustments for Rural and Other Non-Bid Areas

According to CMS, the CARES Act will continue to adjust for the other relief areas because of the ongoing public health emergency.

The 2022 DMEPOS and PEN fee schedule will include:

Rural and non-contiguous non-CBA 50/50 blended fees
Non-rural contiguous non-CBA 75/25 blended fees

Read the Calendar Year 2022 Update for DMEPOS Fee Schedule for more information.

A Message to Share with Washington D.C.

Share with lawmakers how DME providers and suppliers are dealing with:

Product price increases
Higher shipping surcharges
Added costs to meet new operational requirements
Last year’s CPU’s rock bottom inflation increase of less than 1%

Although this temporary adjustment increase is helpful, it’s not a long-term solution. In order to overcome these challenges, Medicare reimbursement rates need to reflect the current times.

We Are a Community

At Medbill, our goal is to keep our customers informed on the latest industry changes, whether it’s related to billing guidelines, regulation updates, or any news that could impact your business. The DME industry is a community, and we’re here to help.

Contact us to learn how we can assist you with your DME billing challenges so you can continue to succeed into the new year.