Minnesota: Budget includes DME cuts, but it lacks Senate support
By HME News Staff
Updated 8:31 AM CST, Wed February 3, 2021
MINNEAPOLIS – Minnesota Gov. Tim Walz’s 2022-2023 budget recommendations include cuts to DME, according to a bulletin from MAMES. Specifically, the budget proposes changing the Medical Assistance reimbursement formula for durable medical equipment that is also covered by Medicare but is not currently subject to the upper payment limit to the equivalent of the Medicare rate. The state’s Department of Human Services estimates the change would result in savings of 4.3%. The budget also proposes simplifying the reimbursement formula for products that don’t have a reimbursement rate by basing it on provider costs rather than billed charges. Additionally, the budget proposes amending state statute to clarify the agency’s current approach to applying the existing hierarchy for setting payment rates for DME items and services, and making clear exactly what payment methodology applies to which items or supplies. There is currently not support in the state Senate to move forward with the budget. MAMES will continue to work with key legislators to educate them on its impact on the ability of providers to serve Medicaid beneficiaries.
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