Partnerships to Build the Future of the Diabetes Industry
The need for diabetes devices is great, approximately 2.4 million people use a continuous glucose monitor in the United States and more than 28% of the US population have diabetes. As the industry grows, it is important for the HME community to strategize, advocate, and communicate the challenges of the market.
AAHomecare is currently working with stakeholders to:
- Demonstrate the benefits of the DME channel for access and compliance to diabetes device therapy,
- Ensure distributors have a voice in policy making for DME coding & coverage criteria,
- Develop strategy for continuing to treat patients on CGM therapy when the PHE comes to an end, and
- Address taxability of CGM devices on a state-by-state basis.
AAHomecare offers the following CPI-U position paper for diabetes suppliers to share with their manufacturer counterparts providing details of what an annual inflation adjustment applied to
DMEPOS items is intended for. The paper outlines how the adjustment is a requirement passed by Congress recognizing the need for inflation adjustments for Medicare providers and suppliers. In
addition to costs of purchasing an item from manufacturers, suppliers face increased labor costs, infrastructure costs, delivery costs, and other costs associated with taking care of their
patients. The consumer price index for all urban consumers (CPI-U) applied to DMEPOS payment rates helps suppliers address increased expenses and maintain their businesses.
Objective of the Annual Inflation Adjustment is to Support DMEPOS Suppliers’ Ability to Service Patients
CGM is an innovative diabetes monitoring technology that measures blood glucose levels continuously in real-time. In 2017, Medicaid programs expanded coverage to include CGMs, either covering under the Durable Medical Equipment channel and/or the Pharmacy channel. Based on feedback from DME suppliers, manufacturers, patients, and other stakeholders, DME suppliers are better suited to provide a more comprehensive service to CGMs patients. DME suppliers promote reduction in healthcare costs, and improve health equity, patient care, patient choice and access. AAHomecare offers the following one-pager regarding the benefit of a dual channel.
CGMs Provided by DME Suppliers Improves Patient Care and Reduces Costs