Washington, D.C. (February 5, 2007) – In response to proposed cuts contained in the Bush Administration’s proposed fiscal 2008 budget, the Council for Quality Respiratory Care (CQRC) – an alliance of 11 of the country’s largest companies that provide home oxygen care to approximately 650,000 Medicare beneficiaries – joined with patients and physicians in expressing concern over the negative impact of any further cuts in Medicare’s home oxygen therapy benefit. The Administration’s proposed cuts, which come on the heels of successive and significant reductions to this important Medicare benefit, would cap funding for home oxygen at 13 months. Currently, funding is capped at 36 months.

“Cuts of this magnitude have the potential to disrupt the quality and continuity of care for our patients," said Mark Shreve, CEO of the Coalition for Pulmonary Fibrosis, which represents more than 128,000 patients who suffer from idiopathic pulmonary fibrosis (IPF), a progressive and ultimately fatal lung disease for which oxygen is a critical component of treatment. “We urge Congress to reject this provision in the President’s budget to ensure that patients are able to access the services they need to survive. We simply cannot afford to disrupt continuity of care for this very fragile population.”

Thomas Petty, M.D. an internationally-renowned pioneer in the field of home oxygen therapy and current Professor of Medicine, University of Colorado, Denver, and Professor of Medicine, Rush Presbyterian St. Luke's Medical Center, Chicago, said the following in response to the proposed 13-month cap: “As the initiator of the Long-term Oxygen Treatment Trial (LOTT) 40 years ago which studied the application of long term home oxygen therapy, I view any potential reduction in reimbursement as a potential disaster. We have proven the efficacy and safety of home oxygen therapy. It adds quality years of life to over a million Americans. Any reduced reimbursement will lead to increased hospital costs, and human suffering.”

Concerns over the proposed cuts are compounded by the fact that the Medicare home oxygen benefit is still experiencing the impact of several years of cuts enacted by Congress as part of the Medicare Modernization Act of 2003 and the Deficit Reduction Act of 2005. This year, ten large cities begin competitive bidding for home oxygen therapy as the first step in a series of cuts in Medicare funding for this essential benefit. In 2009, two of the most significant cuts will take effect: an additional 70 large cities will initiate competitive bidding and Medicare will cap payments for home oxygen therapy at 36 months, regardless of how long a beneficiary needs the therapy.

Peter Kelly, Chairman of CQRC, said, “Providers of oxygen home health services are just starting to absorb the reductions in funding enacted by Congress in recent years. The full impact of MMA and DRA cuts have yet to be realized because they are being implemented in 2007, 2008 and 2009. Further cuts in the benefit would be destabilizing to the system. Additionally, this proposed 13-month cap comes on the heels of the Administration’s recent overhaul of the reimbursement system for home oxygen.”

The Medicare home oxygen benefit is widely regarded as a cost-effective program that is good for patients and good for taxpayers, since long term use of oxygen reduces patient hospitalizations and the length of acute care stays. Providing home oxygen costs approximately $8 a day. A 2004 government study conducted by the federal Agency for Healthcare Research and Quality shows that long-term oxygen therapy reduces the frequency of hospitalizations and the length of hospital stays. A single day of in-patient hospital care costs several thousands of dollars.

According to Kelly, providers are working hard to ensure that continuity of care is not disrupted with MMA and DRA changes that are being implemented. He added that Congress should allow these changes to take effect and assess their impact on patients before embarking on further policy.

Today, more than 1 million Medicare patients depend on the Medicare oxygen benefit for quality of care and quality of life in the home environment. This is a benefit covered under Medicare Part B. Medical oxygen is classified as a drug under the Federal Drug Administration (FDA) and can only be administered under a physician’s care.