Moving the HME Industry Forward


Industry Stakeholders to Advocate for Freezing Rural Competitive Bidding Rates at Current Phase-in Levels

February 1, 2016

WASHINGTON, DC – Since the start of the New Year, AAHomecare leadership has taken part in numerous discussions with leading companies and associations in the HME sector to map out strategy to get relief for companies in rural areas, as well as those in other non-bid areas, now subject to Medicare competitive bidding-derived pricing. 

After considering a range of options and approaches, the stakeholders involved have reached a consensus to advocate for freezing the rates at levels now being applied (and through June 2016), which blends the previous fee-for-service prices in effect before January 1 with bidding-derived prices on a 50-50 basis.

While these initial phase-in cuts will certainly cause financial hardships for HME suppliers in rural/non-bid areas, we believe that working to prevent planned subsequent cuts that could reduce prices for many items by as much as 45% is the best approach to keep these suppliers afloat and help maintain access to critical products and services in less densely populated areas.
In preliminary discussions, champions in both the House and Senate have reacted positively to this proposal as a realistic course of action to get legislation passed this year. In addition, AAHomecare officials hope to engage CMS to consider freezing the rates at the current phase-in levels beyond the six month period before further cuts take place.

AAHomecare officials believe that this approach represents the best chance to keep the deepest and most damaging cuts from wreaking further havoc on rural/non-bid HME suppliers. We will be sharing more with you about our plans to move forward in the coming weeks, and look forward to working with AAHomecare members and the HME community to generate grassroots support and Congressional action on this issue.

VGM Insurance Offers Significant Savings for AAHomecare Members
WASHINGTON, DC – AAHomecare members are now eligible to receive discounted pricing on DMEPOS surety bonds and other insurance products tailored to HME businesses.

Under the program, AAHomecare members will receive a 10 percent discount on surety bond premiums and comprehensive liability insurance – including professional – offered by VGM Insurance.  In addition, VGM offers other insurance products, including property, business auto, worker’s compensation and cyber liability.

“We are excited to partner with VGM Insurance to provide these essential bond and insurance products at significant savings,” notes Tom Ryan, AAHomecare president & CEO. “This program is just the latest example of VGM’s longstanding record of delivering a wide range of financial products and services that has helped HME providers nationwide to grow and thrive.”

VGM will also share a portion of the proceeds from these sales with AAHomecare, so members who participate in this program are ultimately providing additional resources supporting the Association’s work on Capitol Hill and at CMS.

For more information or to start the quote process, visit or call VGM Insurance at 800-362-3363.