AAHomecare urges tariff exemptions

WASHINGTON – AAHomecare has asked the Trump Administration to exclude home medical equipment and supplies from current and proposed tariffs.  

The administration in early March delayed proposed 25% tariff increases on products covered under the 2020 United States-Mexico-Canada Agreement (USMCA) until April. These potential new tariffs would join 20% tariffs on products from China that are already in effect. 

Over the last two months, AAHomecare has engaged Capitol Hill on the need to exempt DME from any new tariffs, because providers largely work under fixed reimbursement rates and can’t pass along higher prices to consumers. 
 
“New tariffs on HME and medical supplies would severely impact the health and well-being of seniors, chronically ill individuals and persons with disabilities throughout the United States,” the association stated in a March 7 letter to the administration. “These tariffs will particularly impact individuals who use HME because most of these products are covered and paid for by Medicare, Medicaid, Medicare Advantage plans, and private insurers who have fixed reimbursement amounts. As a result, tariff-driven product cost increases for HME cannot be passed along to consumers. A ten percent or more base product cost increase caused by tariffs would force HME suppliers to furnish this equipment at a significant loss, given the narrow product margins already in place for these products.” 

AAHomecare joins the American Hospital Association, AdvaMed and HIDA in seeking exemptions for medical devices and products. 

The association says it will continue to share the industry's concerns on tariffs with Congress and the Administration and is working on plans to mobilize HME manufacturers and other stakeholders to raise the visibility of the negative impacts. 

• Related: Trump’s tariffs: The costs stack up.