WASHINGTON, DC – AAHomecare reported last week that the 2020 Medicare fee schedule update released by CMS grants modest 1.6%-2.4% CPI-U increases in several categories:

• Former competitive bidding areas: 2019 rates + 2.4%
• Diabetic supplies, National Mail Order: 2019 + 2.4%
• Non-rural areas: 2019 rates + 1.6%
• Rural/non-contiguous areas: 50% unadjusted fee schedule (2015 fee schedule) and 50% new adjusted fee schedule

Due to the implementation of budget neutrality, AAHomecare officials see the oxygen equipment and contents codes will have varying rate increases:

• Former CBAs: average of 2% increase from 2019 rates
• Non-Rural Areas: average of 3.5% increase from 2019 rates
• Rural Areas: average of 1.5% increase from 2019 rates

AAHomecare is still reviewing the 2020 fee schedules and will share additional perspective in upcoming reports.

See CMS’ update on the CPI-U increase and the 2020 fee schedules for full details.