RD327 - Durable Medical Equipment Reimbursement - November 1, 2009


Executive Summary:
Chapter 781 of the 2009 Virginia Acts of the Assembly directed the Virginia Department of Medical Assistance Services (DMAS) to examine the methodology for reimbursing durable medical equipment (DME) and to make recommendations on cost savings. DMAS recommends reductions of 10 percent for DMAS rates that are based on Medicare rates and an average 5.5 percent reduction on DMAS fee schedule rates effective July 1, 2010. DMAS also recommends consideration of competitively bidding incontinence supplies. Using a hybrid approach, DMAS estimates total savings of $3.8 million in state fiscal year 2011 and $5.9 million in state fiscal year 2012 in its Fee for Service program.