California — The US Department of Health and Human Services (HHS) approved a California plan to extend the Medi-Cal coverage period to a full year for all children approved for coverage, regardless of changes in family circumstance. The change will result in an additional 390,000 children under age 19 remaining eligible each month and bring total Medi-Cal enrollment to almost 6 million for 2001-2002.

Alabama — The Alabama DME Association elected Larry Ready to chair the HME Services Providers Licensure Board on June 17 at its 2001 convention. John G. Beard, MBA/JD, CEO of Alacare Home Health and Hospice in Birmingham, will serve as vice chair. Held at the Perdido Beach Resort in Orange Beach, the conference set a record attendance with 130 providers.

North Carolina — The Commerce Committee sent the “Out of State Licensure” bill (SB 473) on to the Senate Finance Committee on June 20. From there it will go to the Senate floor where Sen A.B. Swindell will handle it. The bill requires out-of-state HME providers to obtain a permit and register annually with the board of pharmacy, just as in-state providers are required to, and has the support of the North Carolina Association for Medical Equipment Services.

New York — Legislation to require licensure of HME providers did not make it through the legislative process prior to the state congressional adjournment on June 26. However, it will be reconsidered in 2002 thanks to lobbying by the New York Medical Equipment Providers.

Last year’s budget resolution had set aside $13 billion over 10 years to pay for the elimination of the cut. However, before the cut is really gone for good, the Senate Finance, the House Ways and Means, and the House Energy and Commerce Committees must be persuaded to report out legislation to eliminate the cut.

HHS Issues First HIPAA Compliance Guidelines
In response to the confusion surrounding the patient privacy rules in the Health Insurance Portability and Accountability Act, scheduled to go into effect April 14, 2003, HHS posted a guide to compliance at www.hhs.gov/ocr/hipaa on July 6. “This guidance is an opening step in helping physicians, health care providers, and health plans understand their obligations to patients under the rule,” says HHS Secretary Tommy G. Thompson.

DMERCs Revise O2 Policy
If you have struggled with finding independent laboratories that will do pulse oxygen testing for your Group II and Group III oxygen patients, the DMERCs may soon make it even harder. On July 20, the four Durable Medical Equipment Regional Carriers (DMERCs) released a revised oxygen testing policy that requires retesting for Group I home oxygen patients between the 61st and 90th day of coverage. Each DMERC will hold a public meeting in its region to gather comments on the policy. To review the policy, visit your DMERC’s Web site. Links to all sites are available at www.aahomecare.org. The policy will be open for comment until September 14.

PMC Testifies Before House
Excessive paperwork and the ability of the DMERCs to bypass proper regulatory process, such as public notice and comment periods when changing policies, has placed an undue burden on the power mobility industry, Brian D. Seeley, a Power Mobility Coalition board member, told the House Small Business Committee. “Without increased oversight of DMERC action from CMS, providers and suppliers will be left to navigate ever-changing policies with little opportunity for appropriate due process,” testified Seeley, who is also president of Seeley Medical Inc, Ormond Beach, Fla.

DME Providers Excluded From MERFA Protection
The Medicare Education and Fairness Regulation Act (MERFA)—S 452 and HR 868—which provides due process protections to Medicare providers, will not apply to DME providers, says Leslie Aronovitz, director of health care for the General Accounting Office in a letter to Sen Max Baucus (D-Mont) and Sen Charles Grassley (R-Iowa). AAHomecare has met with representatives of each of the key committees to request that providers be included with the MERFA protections. For complete text of the letter, visit www.gao.gov/new.items/d01802r.pdf.

CMS Updates PPS Rates
Prospective Payment System (PPS) rates will increase according to the home health basket increase for dates of service in or after October. The updated 60-day episode amount for fiscal year 2002 is $2,274.17. See the June 29 Federal Register for the complete text of the proposed increase. The notice has a 60-day comment period.

NRRTS Conference Coming Up
The National Registry of Rehabilitation Technology Suppliers will hold its Leadership Planning Conference on August 10-11 in St Louis. This year’s meeting focuses on marketing and legal issues.

Canton Gets New RT Company
On August 1, industry veterans Peter Falkson and Joe Sheehan launched Trusted Life Care, a 90% respiratory company in Canton, Mass. For Falkson and Sheehan, it was the completion of an 8-month research and planning process. “We are extremely proud of what we have done to date, and we are very excited about our plans for the near future,” Falkson says.

VGM Names New President
Ron Bendell will become president of Van G. Miller and Associates, Waterloo, Iowa, on September 1. He succeeds Tom Fitzgerald, who has been with VGM throughout its 15-year history, and was president of the member service organization since May 1, 1994.

In addition to president, Bendell will remain national sales manager and director of international sales. (800) 642-6065; www.vgm.com.

AAHomecare Picks New Director of Communications
Julie B. Phillips, former design director of Fishbowl.com, an e-mail marketing company, has assumed the role of director of communications for the American Association for Homecare, Alexandria, Va. Phillips brings over 10 years of marketing, communications, publishing, and editing experience to the job.