Deficit Reduction Act Enacted!
Here are the highlights of the Deficit Reduction Act signed in to law on February 8, 2006:
- Fee for Services payments to physicians will NOT be reduced by 4.4%. Claims that have been already processed will be reprocessed. Retro payments will be paid through July 1, 2006.
- Increase in the base payments to ESRD facilities for 2006. Claims that have already been paid will be reprocessed.
- Hold harmless payments for rural hospitals will be reinstated.
- 5% add-on payment to rural home health services to rural beneficiaries
- Caps to outpatient therapy services went in to effect Jan 1 2006. $1,740 per beneficiary per year for speech and occupational therapy.
- Changes to rental arrangement for DME equipment. “Capped rental” equipment are rented by Medicare for 13 months (was 15 months) and the title now transfers to the beneficiary after the 13 month period. The title use to rename in the name of the DME rental company.
- Oxygen equipment is now rented for 36 months (was indefinitely) and the title transfers to the beneficiary at the expiration.
- The minimum number of days that a non-electronic claim will be paid changed from 27 to 29 day
