CMS announces 3% increase 

WASHINGTON – CMS has announced a 3% CPI-U adjustment to the DMEPOS fee schedule for calendar year 2024, AAHomecare has reported, but the actual amount will be influenced by Medicare’s competitive bidding program. 

The adjustment varies as follows: 

   • CBP items in former CBAs (projected percentage change): +2.9% 
   • CBP items in non-CBAs (CPI-U): +3% (not directly stated in the change request) 
   • Non-CBP items (CPI-U minus productivity adjustment): +2.6% 

AAHomecare provided the following analysis: 

What this means for CBP items in former CBAs 

For items such as CPAP devices, oxygen and NPWT, where the payment is based on CBP payment rates, the 2.9% inflation adjustment should be directly reflected in the fee schedule in CY2024. 

What this means for non-CBP items 

For items that have never been part of the CBP, such as urological and ostomy supplies, the 2.6% inflation adjustment should be directly reflected in the fee schedule, regardless of location in the country. 

What this means for CBP items in rural areas 

For CBP items in rural areas, the 50/50 blended rate will continue to be applied (50% fully adjusted regional payment/50% unadjusted fee schedule from 2015), meaning the 3% increase will only be applied to the fully adjusted portion of the calculation. As such, the portion of the reimbursement calculation that is based on the static 2015 rates will remain the same, but the fully adjusted portion will increase by 3%. The 2024 rate = 50% derived from the 2015 rates, 50% derived from the current regional rates, plus 3% increase.  

What this means for CBP items in non-rural 

For CBP items in non-rural areas, the payment rate will depend on Congress passing extensions to the 75/25 relief rates. If relief is extended, the portion of the reimbursement calculation that is based upon the static 2015 rates will remain the same, but the fully adjusted portion will increase by 3%. For non-bid, non-rural areas, the 2024 rate = 25% derived from the 2015 rates, 75% derived from the current regional rates, plus 3% increase. However, if Congress fails to pass an extension, the payment rate for CBP items non-rural areas starting in CY 2024 will be 100% of the adjusted regional rate.