In other news, the Missouri Senate approved a bill that would create a Medicaid Reform Commission to overhaul the state health program by 2007. "Our current Medicaid system is to sunset on July 1, 2007," Vestal said. "In [fiscal] 2008, we will be looking at an entirely new Medicaid system, from enrollment to submitting claims."

Michigan Medicaid Re-Examines Proposed Oxygen Cuts
LANSING--The Michigan HME association has successfully postponed a potentially devastating Medicaid cut for home oxygen as providers wait for a new proposal from the state health agency.

At the end of last year, Michigan Medicaid proposed cutting oxygen concentrator reimbursement by almost 50 percent. But state officials have since put the proposal on hold as they await new fees for Medicare oxygen pricing, which CMS has yet to release. Michigan Medicaid bases many of its fees on the Medicare fee schedule.

The 50-percent-cut proposal came about when government officials examined several oxygen-provider contracts with the state's managed-care arm of Medicaid. "The state of Michigan, like many states, is in a huge budget deficit," said Steve Slater, general manager at Grand Rapids, Mich.-based Airway oxygen and president of the Michigan Home Health Association--which has both home health and HME membership. "Medicaid makes up 28 percent of the total state budget, so they were looking for ways to save some money."

Slater said that Michigan's managed-care program holds contracts with only a few providers serving the whole state. "Medicaid serves the less-than-healthy individual," he explained. "You need to have good services. With one or two exclusive providers, service goes out of the equation.

"I cannot say enough good things about Michigan Medicaid," Slater continued. "[Agency officials] realized they didn't have the whole picture," he said, adding that the state gave the association a chance to explain respiratory therapies, accreditation and what's involved for providers in delivering quality service.

Mississippi Medicaid Saved from Insolvency
JACKSON, Miss.--In a special session March 13, Mississippi lawmakers passed legislation to borrow money from the state's tobacco trust fund to keep its Medicaid program afloat.

"This is a very happy weekend for 780,000 Medicaid recipients and the thousands who provide them health care," Gov. Haley Barbour said in a statement. "In fact, I suspect every Mississippian is glad this health crisis is over."

The state's Medicaid program, which carried a $268 million deficit, came dangerously close to bankruptcy in recent weeks. And since October of last year, state HME providers say Mississippi's fiscal trouble has cut into bottom lines.

"We're seeing many more products for adults not being covered [under Medicaid]," said Danyelle Carroll, owner of Crystal Springs, Miss.-based Mobility Medical, and president of the Mississippi Association of Medical Equipment Suppliers. She explained that these patients "need equipment to stay out of the hospital," and added that she sees more of these patients "being re-admitted to institutions, which is much more expensive than a wheelchair."

According to reports, the money from the tobacco trust fund should carry the Medicaid program through the end of Mississippi's fiscal year June 30.

Indiana Introduces HME Licensure Bill, Proposes Medicaid Cuts
INDIANAPOLIS--A bill requiring Indiana HME licensure is making its way through the state legislature with support from the state Medicaid agency.

"[The Association for Indiana Home Medical Equipment Services] has been working for the last three years to get HMEs licensed," said Jean Macdonald, AIHMES' director of public policy. HME licensure had stalled until the state attorney general's office made HME fraud prevention one of its priorities last year, she said. Since, the licensure bill "has sailed through the Senate, and it is now in the House."

She added that the bill has strong support from the Indiana Family and Social Services Administration, which runs Indiana Medicaid. The bill itself lists specific equipment that would require provider licensure, including wheelchairs, hospital beds and oxygen. Those selling DME not mentioned in the bill, such as canes and walkers, would not need a license.

In other Indiana news, FSSA Secretary Mitch Roob has proposed ways to curb Medicaid spending growth by $76 million. Besides a freeze in provider payments and discounted drug purchasing, Roob wants the state to buy wheelchairs and other DME "in bulk," though details have yet to be released.

AIHMES members will be meeting with government officials soon "to clarify the situation," Macdonald said, adding that Medicaid officials have "been very willing to listen and take our counsel."

To view the licensure legislation, visit the Indiana General Assembly Web site by clicking here.