(Image via Quipt Home Medical Corp.)
Health care providers are hoping to get relief from pending Medicare cuts under legislation the US House of
Representatives.
Earlier this month on a party line vote the House passed legislation to prevent across-the-board, 4% PAYGO-related cuts to Medicare reimbursement from taking effect next year.
The Protecting Medicare and American Farmers from Sequester Cuts Act, also extends the pause on 2% sequestration cuts through March 2022. It then re-implements the cuts at a 1% level from April 1, 2022, to June 30, 2022, then returns the cuts to 2% starting July 2022. To offset this extended deferral, the legislation increases the sequestration rate in 2031.
This comes via an
AAHomecare bulletin, which added that it was thanks to the large number of HME stakeholders who reached out directly to their legislators to rein in these cuts, who sent a message and generated more than 6,500 letters to the Hill on the issue.
This could help foster the bullish regulatory environment in the durable medical equipment space, equipment which is often used both at home and at any location outside of a medical facility.
One company poised to take advantage of this is
Quipt Home Medical Corp. (TSX-V: QIPT, NASDAQ: QIPT, Forum). Quipt provides in-home monitoring and disease management services including end-to-end respiratory solutions for patients in the US healthcare market. It seeks to continue to expand its offerings to include the management of several chronic disease states focusing on patients with heart or pulmonary disease, sleep disorders, reduced mobility, and other chronic health conditions. The primary business objective of the Company is to create shareholder value by offering a broader range of services to patients in need of in-home monitoring and chronic disease management.
Durable medical equipment reimbursement would be increased roughly 5%, higher than the typical 1% to 3% increase is a key step to what could be seen as an upward trend. It is also worth noting that this largely outweighs the 3.7% cut to Medicare’s rates.
Providers then saw another major boost in early December, when the US Senate passed legislation that delays nearly 10% in Medicare cuts set to take effect next year.
The legislation would delay a 2% cut to Medicare payments that was created under sequestration but has been put on hold over the past two years due to the pandemic. Congress decided to delay the 2% cut until April, when it will install a 1% cut to payments until June.
Now the legislation rests on President Joe Biden’s desk and its signing would likely be welcomed with open arms by Quipt’s leadership team.
Quipt’s focus on superior patient care and safety are at the forefront with this acquisition and the company sees an opportunity to further relationships with new and existing long-term care facilities, hospital systems and other medical facilities across the country.
To find out more, visit
quipthomemedical.com.
FULL DISCLOSURE: This is a paid article produced by Stockhouse Publishing.