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Lawmakers press witnesses on DME reimbursement, liquid oxygen access and risks of AI‑driven denial models
Summary
Members questioned witnesses about competitive bidding’s effects on DME suppliers, the SOAR Act’s proposal to remove liquid oxygen from bidding, and bills to ban the WISER pilot’s AI‑driven denial incentives after witnesses warned of supplier exits and risky vendor incentives.
Tom Ryan, president and CEO of the American Association for Home Care, told the subcommittee that competitive bidding has driven down durable medical equipment reimbursement and that suppliers—especially small businesses in rural and non‑bid areas—have faced drastic revenue losses, layoffs and market exits.
"When those rates came into effect ... 65% of companies reduced the amount or type of products they offered, 46% reduced their service areas, 53% laid off staff and over 1 in 10 said they may be out of business within a year," Ryan said,…
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