Maine Medical Suppliers Threaten to Cut Off Services to Medicaid Beneficiaries

Medical suppliers in the state of Maine have once again threatened to cease providing equipment such as wheelchairs and oxygen machines to Medicaid patients if the state does not address "[in]adequate" reimbursement rates, the Portland Press Herald reports. Already this spring, the state Legislature passed a bill approving a reimbursement increase for medical apparatus suppliers. However, the bill, which would have cost $400,000 over the next two years, died when it did not receive funding in the state budget.

Threats from the Industry
According to the Press Herald, Maine's reimbursement formula does not account for "extensive maintenance and setup costs" that come with providing medical equipment, leading many medical suppliers to threaten to cut off service. Jeff Farrell, the general manager of supplier Alpha One Medical, said that his company lost $100,000 on Medicaid sales last year. Another supplier that has in the past threatened to cut off service is Black Bear Medical, but company treasurer Tom Jones has said that Black Bear will not stop providing equipment. Jones, who is "unhappy with the Legislature" after losing $18,000 last year, has said his company will continue to provide equipment because of "concessions" made to his company by the state Department of Human Services, including increasing the maximum reimbursement on wheelchairs from $1,500 to $2,000. Despite this concession, Jones "said the problem is not going to go away" and his company will "look to ... [v]enues" other than Medicaid. Alpha One and Black Bear are not alone, the Press Herald reports, as other members of the New England Medical Equipment Dealers Association have also "threatened" to cut off service unless the rates are raised. State Rep. William Schneider (R), the sponsor of the original reimbursement bill, said that he "hopes to revive" the issue when the Legislature returns to session in January, the Press Herald reports (Nacelewicz, Portland Press Herald, 7/11).

Maine's 'Inaction' Lamented
An editorial in the Portland Press Herald says the state Legislature "deserves credit" for passing LD 1151, a bill that would increase reimbursement rates for medical suppliers providing equipment to Medicaid patients. However, the editorial says that the Legislature should also get a "kick in the seat" for failing to fund the bill. The editorial calls the threats by medical suppliers to cut off service "not idle" and says that, in effect, those medical suppliers are "subsidizing the program," which is "unfair." The editorial admits that the state is "strapped for cash" but says "that's no excuse" for "shortchanging Medicaid recipients" (Portland Press Herald, 7/12).