Earlier this year, the American Association for Homecare commissioned a study by Morrison Informatics to study the costs of providing oxygen therapy in the home. Morrison collected and analyzed data from homecare providers that collectively serve more than 600,000 Medicare beneficiaries receiving oxygen therapy in their homes, which represents more than half of the Medicare population receiving oxygen therapy at home.

 The study found that nearly three-quarters (72 percent) of the cost of providing home oxygen therapy to Medicare patients in their homes represent services, delivery, and other operational expenses that benefit patients.  Only about one-quarter (28 percent) of the cost represents oxygen equipment.

?“It is time that CMS and Congress recognize that the services captured in this Morrison study represent the industry standard of care in the United States, regardless of the payor source - managed care, Medicaid, and Medicare patients alike all require the same service categories,” commented Tom Ryan, Chairman of the American Association for Homecare and CEO of Homecare Concepts in Farmingdale, NY.

Medical oxygen and oxygen systems require a physician's prescription. Oxygen is highly regulated by the Centers for Medicare and Medicaid Services (CMS), the Food and Drug Administration, and the U.S. Department of Transportation.

 Oxygen therapy is critical to approximately one million Americans who suffer from respiratory illnesses such as COPD and who require oxygen therapy under Medicare. Nationwide, as many as 15 million Americans have been diagnosed with COPD, which is growing in prevalence. It is a slowly progressive, incurable disease that causes irreversible loss of lung function. Though existing medications have not proven beneficial in reversing its effects, home oxygen therapy-when properly prescribed and maintained-can slow or stop lung degeneration.

The American Association for Homecare has endorsed the Home Oxygen Patient Protection Act, H.R. 5513, which was introduced in May by two physicians in Congress - Rep. Joe Schwarz (R-Mich.) and Rep. Tom Price (R-Ga.) along with other members of Congress and its Senate companion bill, S. 3814, introduced by Sen. Pat Roberts (R-Kan.) and Sen. Jack Reed (D-R.I.).  The bill restores the Medicare treatment of ownership of oxygen equipment to that in effect before enactment of the Deficit Reduction Act of 2005 (DRA). A provision in the DRA forces oxygen users to assume ownership of and responsibility for the oxygen system they use after 36 months. The DRA policy change effectively severs the patient-provider relationship for home oxygen therapy, which raises numerous patient-safety concerns.

 The American Association for Homecare, the American Lung Association, and other patient and provider groups vigorously oppose the change in oxygen policy. Medical oxygen therapy at home costs an average of $7.62 per day under Medicare. The average hospital cost under Medicare is $4,603 per day.

The is the only national association that represents every line of service in the homecare community, including home medical equipment providers, respiratory therapy, infusion therapy, rehab and assistive technology, home health agencies, home hospice, and telemedicine. AAHomecare represents more than 3,000 member locations nationwide. For details about home oxygen therapy, see http://www.aahomecare.org .

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