In brief: AAH asks for exemption, CPAP therapy saves lives, Cigna closes MA sale

WASHINGTON – AAHomecare has asked the Trump Administration to exclude home medical equipment and supplies from current and proposed tariffs.

The administration in early March delayed proposed 25% tariff increases on products covered under the 2020 United States-Mexico-Canada Agreement (USMCA) until April. These potential new tariffs would join 20% tariffs on products from China that are already in effect.

Over the last two months, AAHomecare has engaged Capitol Hill on the need to exempt DME from any new tariffs, because providers largely work under fixed reimbursement rates and can’t pass along higher prices to consumers.
 
“New tariffs on HME and medical supplies would severely impact the health and well-being of seniors, chronically ill individuals and persons with disabilities throughout the United States,” the association stated in a March 7 letter to the administration. “These tariffs will particularly impact individuals who use HME because most of these products are covered and paid for by Medicare, Medicaid, Medicare Advantage plans, and private insurers who have fixed reimbursement amounts. As a result, tariff-driven product cost increases for HME cannot be passed along to consumers. A ten percent or more base product cost increase caused by tariffs would force HME suppliers to furnish this equipment at a significant loss, given the narrow product margins already in place for these products.”

AAHomecare joins the American Hospital Association, AdvaMed and HIDA in seeking exemptions for medical devices and products.

The association says it will continue to share the industry's concerns on tariffs with Congress and the Administration and is working on plans to mobilize HME manufacturers and other stakeholders to raise the visibility of the negative impacts.

• Related: Trump’s tariffs: The costs stack up.

Sleep apnea patients on CPAP therapy live longer, study finds

SAN DIEGO – CPAP therapy significantly reduces the risk of death for people with obstructive sleep apnea, according to a landmark meta-analysis supported by Resmed and published in The Lancet Respiratory Medicine.

The study, which analyzed data from more than 1 million sleep apnea patients worldwide across 30 studies, found those on CPAP therapy have:

• A 37% lower risk of dying from any cause compared to those with OSA who do not use CPAP.
• A 55% lower risk of dying from cardiovascular disease, reinforcing CPAP’s supportive benefits for heart health in people living with OSA.
• A dose-response relationship, meaning that the more consistently CPAP is used, the greater the survival benefits for people living with OSA.

“For people with OSA, using CPAP versus not using CPAP can literally be a matter of life or death,” said Carlos Nunez, M.D., Resmed’s chief medical officer. “Decades of research have shown CPAP can improve quality of life, and this study now provides the most comprehensive evidence, yet that CPAP also prolongs lives for people living with OSA.”

Researchers analyzed long-term outcomes over the average follow-up period of nearly five years, testing the hypothesis that CPAP therapy reduces both all-cause and cardiovascular mortality in OSA patients.

The study’s authors are Adam V. Benjafield PhD; Prof Jean-Louis Pepin; Prof Peter A. Cistulli; Alison Wimms PhD; Florent Lavergne MSc; Fatima H. Sert Kuniyoshi PhD, Sibyl H. Munson PhD, Brendan Schuler BS; Shrikar Reddy Badikol MSc; Kelly C. Wolfe BS; Leslee Willes MPH; Colleen Kelly PhD; Tetyana Kendzerska MD; Dayna A. Johnson PhD; Prof Raphael Heinzer MD, Prof Chi-Hang Lee MD, Prof Atul Malhotra MD.

Read the full study in The Lancet Respiratory Medicine.

OIG: MACs miss mark on cost reports

WASHINGTON – Medicare Administrative Contractors did not consistently meet Medicare cost report oversight requirements, according to a new report from the Office of Inspector General.

For federal fiscal years 2019–2021, each of the 12 MAC jurisdictions failed to comply with the contract requirements for audit and reimbursement desk review and audit quality (AR-4) for at least one of the three years.

CMS identified 287 total audit issues among all MAC jurisdictions during the audit period, including MACs not performing proper reviews; inadequate review of graduate medical education and indirect medical education reimbursement; improper review of allocation, grouping, or reclassification of charges to cost centers; improper calculation and reimbursement for nursing and allied health programs; and inadequate review of bad debts.

MAC officials from selected jurisdictions suggested multiple causes for the findings, including unclear guidance from CMS, limited feedback on the cost report reviews, inadequate training, and staffing and workload issues.

The OIG recommended CMS improve its efforts to ensure that MACs meet their cost report oversight requirements, including increasing transparency about its processes and providing additional training. CMS generally concurred with all three recommendations and has taken steps to address all of the recommendations.

Cigna closes on sale of MA business

BLOOMFIELD, Conn. – The Cigna Group has completed the sale of its Medicare Advantage, Cigna Supplemental Benefits, Medicare Part D, and CareAllies businesses to Health Care Service Corporation (HCSC). The divestment of these assets streamlines The Cigna Group's portfolio and enables it to drive further innovation to support customers, it says. "We are proud of the positive impact we have made in people's lives and the unique value provided through our Medicare businesses and are confident that HCSC will continue the meaningful work that we have done for these customers,” said David M. Cordani, chairman and CEO of The Cigna Group. “We remain committed to serving Medicare populations through the portfolio of products and services we offer through Evernorth Health Services.” The Cigna Group will continue to provide pharmacy benefit services and other solutions to the Medicare businesses through its health services company Evernorth Health Services as part of services agreements with HCSC for an agreed period post-closing. “This transaction is fully aligned with our mission of expanding access to quality health care by adding capabilities and deepening our geographic presence across the United States," said Maurice Smith, HCSC's CEO, president and vice chair. “Americans are growing, and we plan to have an important role in helping seniors live healthier, fuller lives. We are excited to welcome our new Medicare members and the employees who will continue to help them achieve their best health."

Forcura, Medalogix join forces

JACKSONVILLE, Fla., and NASHVILLE, Tenn. – Forcura, a workflow management company, and Medalogix, a clinical decision support company, have merged, creating what they say is a leading post-acute care technology platform focused on the advancement of intelligent patient care within home-based care providers and, ultimately, across the entire health care continuum. The combination of Forcura and Medalogix will allow providers to leverage one platform to streamline patient care transitions, simplify collaboration with the broader care team, optimize utilization and resource allocation, and improve end-of-life care management. “We look forward to our next chapter with Medalogix, where we sustain our commitment to empower better patient care and elevate the role of post-acute providers across the healthcare continuum,” said Craig Mandeville, founder and CEO of Forcura, who will sit on the board of directors of the combined business. The combined company’s products will increase transparency for referral sources and payers, leverage AI to calibrate patient care delivery, improve outcomes and drive better business performance for post-acute care providers and their cross-continuum partners, the companies say.

DispatchHealth, Medically Home merger ‘unlocks future’ for hospital at home

DENVER and BOSTON – DispatchHealth and Medically Home have entered into a definitive agreement to merge, creating what they say is the country’s most comprehensive provider of advanced medical care at home. With Medically Home as part of DispatchHealth, the companies will extend care into the homes of patients across 50 major metro areas in partnership with nearly 40 health systems, as well as most major health plans and value-based care entities. “This merger unlocks a future where high-acuity care at home is the new standard,” said Dr. Mark Prather, co-founder and executive chair of the board for DispatchHealth. “We’re combining decades of expertise to create a seamless, scalable model for hospital-level care at home—bringing the right care to the right place at the right time for more people.” The companies say the combined entity will be positioned to deliver everything from same-day medical care for serious health concerns to complex hospital-level care in the home—improving outcomes while reducing the total cost of care by up to 30% over a 30-day period. With expanded capabilities, the combined entity could free up more than 62,000 bed days, easing strain on health systems while improving patient access to high-quality care at home, they say. “Hospital-at-home has consistently demonstrated better outcomes, and we believe every patient—regardless of where they live—deserves access to that level of care. This merger allows us to break down barriers, reaching more families in underserved communities with high-quality, advanced medical care in their homes,” said Pippa Shulman, chief medical officer and chief strategy officer, Medically Home. The deal is expected to close mid-year 2025. About the companies:

• DispatchHealth: Since its inception in 2013, it has treated more than 1.2 million people in more than 20 states across the U.S., resulting in 58% emergency room avoidance, 8.5% 30-day hospital readmission rate, 98% patient satisfaction rating and an estimated $1.5 billion in medical cost savings.
• Medically Home: More than 55,000 patients have received hospital care at home through a partner-utilized Medically Home-enabled program.

Sequel Med Tech collaborates with Abbott

MANCHESTER, N.H. – Sequel Med Tech has announced that Abbott’s FreeStyle Libre 3 Plus sensor will be the first continuous glucose monitoring device to work with its twiist Automated Insulin Delivery (AID) System powered by Tidepool. The sensor will be compatible with twiist when the system is expected to launch in the second quarter of 2025. “We are thrilled to announce our collaboration with Abbott, integrating its world-leading FreeStyle Libre technology as our first CGM partner, marking a significant milestone as we bring our innovative AID system to market,” said Sequel CEO and Co-Founder Alan Lotvin, MD. “This collaboration highlights our commitment to making advanced diabetes management more accessible and flexible for people living with diabetes. Abbott’s FreeStyle Libre technology, known for its user-friendly design and broad accessibility, complements our innovative system.” Sequel says twiist is the first insulin delivery system that directly measures the volume of insulin delivered with every micro-dose. Its iiSure Technology also includes four checkpoints to provide accurate delivery, alerting users to blockages up to nine times faster than competing AID systems, the company says. Additionally, its Loop algorithm, based on the diabetes community driven Tidepool Loop, allows the system to automatically adjust basal insulin delivery based on real-time sensor readings and predicted glucose levels. twiist is cleared by the U.S. Food and Drug Administration for people ages six and up with Type 1 diabetes. 

United Spinal launches Medicaid Stories campaign

WASHINGTON – United Spinal Association is calling on all wheelchair users who rely on Medicaid to share their stories about what the program means to them. The association’s Medicaid Stories campaign will educate the public, media and elected officials about proposed budget cuts and their impact, including the ripple effect on the labor market. “If Medicaid is cut, it would jeopardize my ability to contribute as a taxpayer through my full-time job with the state,” says Kristen J., a wheelchair user from Texas. “Medicaid cuts could mean I couldn’t afford my expensive medication or durable medical equipment that isn’t completely covered by my private healthcare insurance. I would no longer be able to contribute to society because Medicaid cuts could affect my entire livelihood.” United Spinal says it will continue publishing and promoting stories for the foreseeable future. Wheelchair users can share stories here. "Medicaid is more than a lifeline for our community - it is what makes our lives possible,” says Steve Lieberman, senior director, advocacy and policy for United Spinal. “From health care to transportation to the support services needed to contribute to the workforce, Medicaid is the key. Stories like Kristen’s are too often untold, and it is up to us to bring greater understanding of the role Medicaid plays in our society."

Apria settles cyber-related lawsuit

INDIANAPOLIS – Apria Healthcare, now part of Owens & Minor, has agreed to pay more than $6.4 million to resolve a consolidated data breach class action lawsuit related to two cyberattacks in 2019 and 2021 that affected nearly 1.9 million members, according to news reports. If the settlement is approved, class action members will be able to file a claim to receive up to $2,000 per person for out-of-pocket losses that are connected to the data breaches and supported with documentation. These losses could include fees for attorneys and credit repair services. As part of the settlement, Apria has also agreed to enhance data security protocols. The company has denied all claims and contentions in the lawsuit and has not admitted to any wrongdoing.

• Related: State AG sues Apria Healthcare

Short take: ATLAS Technology

ATLAS Technology has launched AI Intake, a new feature embedded in its HME/CRT enterprise software to streamline patient intake and enhance billing efficiency. The feature is available at no additional charge. The company says AI Intake enables providers to receive and upload orders with a single click, automatically lifting patient demographics into ATLAS intake fields, eliminating manual data entry, reducing errors and accelerating the intake process. FMI: www.atlastechnologyllc.com.