Moving the HME Industry Forward

Legislative/Advocacy

AAHomecare in Action – HME’s Share of Medicare Spending Drops to 1.25%

January 25, 2016

WASHINGTON, DC – While overall Medicare spending has increased over 175% from 2000 to 2014, home medical equipment spending has not kept pace, including an overall 4% decline from 2012.  HME took a 1.25% share of overall Medicare spending in 2014, dropping from a 2% share just ten years earlier.  These are among the findings in the most recent update of the National Health Expenditure Accounts published in December.

We’ve updated our fact sheet on DME’s share of Medicare spending, which includes an easy-to-understand graphic comparing HME’s flat growth to consistently more rapidly ascending hospital, physician/clinical, and prescription drug expenditures.

DME spending is an investment that pays significant returns:
• $1 spent on mobility HME saves $16.78 in fall-related recovery.
• $1 spent on supplemental O2 therapy for COPD saves $9.62 in complications.
• $1 spent on CPAP therapy saves $6.73 in Obstructive Sleep Apnea complications.

In addition, the average hospital stay costs from $1,798 (for profit) to $2,346 (non-profit) PER DAY nationwide (2014 data compiled by the Kaiser Family Foundation).   You can find average hospital stay costs for the U.S. and your state using Kaiser’s excellent online comparison tool.

Please be sure to use the fact sheet to make the point that HME plays a crucial role in preventing or shortening costly hospital stays and other clinical interventions, especially if you’re planning on meeting your legislators during any of the upcoming Congressional recess periods:
• Feb. 15-19 (House & Senate)
• Mar. 4-11 (House)
• Mar. 21-23 (Senate)

If you would like the information in an editable or co-branded format, please contact Ashley Plauché at ashleyp@aahomecare.org.  For assistance in reaching out to members of Congress or staff, please contact Gordon Barnes at gordonb@aahomecare.org.