Last night, I met a business owner who is very angry at Obama. [View all]

[Laura PourMeADrink]

This is NOT an ACA slam ! Just trying to understand so I can defend it better.

I met a very angry owner of a home respiratory service last night. Naturally his
customers are almost exclusively seniors. So, to sell his service, he relies on telling people it
is covered by medicare (20% copay). He also relies on the government reimbursing
him for his cost plus profit.

He said that "Obamacare" (insert snarl) will be cutting 51% of his medicare reimbursements.

After researching this, it is true that reimbursements for home health care services will be cut
under ACA, but couldn't find any specific numbers on home health care services such as
his to prove what he was saying.

Assume the 51% cut is true, it sounds to me that niche companies like his will be hurt by ACA. He has no other source of clientele to make up the profit since the vast majority of people who need oxygen are seniors.

So, what are his choices? Jack up the price and hope seniors can afford more out-of-pocket or have coverage under
a supplemental plan? If that doesn't work, go out of business because the future Medicare reimbursement my not even cover the cost to operate?








Oxygen Therapy
Part B covers the rental of oxygen equipment. If you own your own equipment,
Medicare will help pay for oxygen contents and supplies for the delivery of oxygen
when all of the conditions below are met:

• Your doctor says you have a severe lung disease or you’re not getting enough oxygen.
• Your health might improve with oxygen therapy.
• Your arterial blood gas level falls within a certain range.
• Other alternative measures have failed.

Under the above conditions Medicare helps pay for the following:
• Systems for furnishing oxygen
• Containers that store oxygen
• Tubing and related supplies for the delivery of oxygen and oxygen contents

In 2012, YOU pay 20% of the Medicare-approved amount.
http://www.medicare.gov/Pubs/pdf/10116.pdf