H.R. 2902: Supplemental Oxygen Access Reform Act of 2025

The bill, known as the Supplemental Oxygen Access Reform Act of 2025, aims to improve access to supplemental oxygen therapy and related services for beneficiaries, particularly those covered by Medicare. Here’s a summary of its key provisions:

Reform of the Medicare Supplemental Oxygen Benefit

The bill proposes to:

• Eliminate Competitive Bidding: Oxygen and related equipment will be excluded from the competitive bidding program, which is designed to set payment rates based on bidding among suppliers. This aims to enhance patient access to necessary services.
• Establish Adequate Payments: It outlines new payment guidelines for oxygen and related supplies, ensuring reimbursement rates reflect actual costs incurred by suppliers and the needs of beneficiaries.
• Payment Adjustments for Liquid Oxygen: Specific guidelines for payments related to liquid oxygen will be established, considering costs associated with delivery and equipment. Additional payments will also be made for high-flow patients who require greater oxygen flow rates.

Establishment of Supplemental Oxygen Responsibilities Criteria

The bill aims to define the responsibilities of suppliers in providing oxygen therapy. This includes:

• Conducting initial evaluations to assess the need for oxygen
• Providing educational materials about the equipment and safety
• Ensuring timely delivery and proper setup of equipment
• Conducting regular monitoring and maintenance of equipment

Access to Respiratory Therapists

The legislation also integrates respiratory therapist services into Medicare coverage, establishing reimbursement mechanisms for their services starting January 1, 2026. This acknowledges the critical role respiratory therapists play in managing patients' oxygen needs.

Adoption of Electronic Templates

To minimize potential fraud and streamline the process, the bill proposes:

• The adoption of electronic templates that document the medical necessity for oxygen equipment and supplies.
• Using these templates to ensure that claims for payment are processed efficiently by Medicare contractors.

Beneficiary Rights and Protections

The legislation seeks to establish clear rights for beneficiaries regarding their oxygen services, including the right to:

• Select and change their suppliers
• Receive clear communication about their treatment
• Maintain privacy and confidentiality of their health information
• Be informed of their treatment options and responsibilities

It also includes provisions for timely notifications regarding cost-sharing obligations and rental periods for equipment.

Additional Consumer Protections

Beneficiaries will be provided with grievance processes to address issues with suppliers, and suppliers must notify beneficiaries in case of substantial changes or service disruptions.

Relevant Companies

• HME - Companies providing durable medical equipment could see shifts in market dynamics based on how reimbursements change under this bill.
• AMP - Companies involved in oxygen delivery services and related technologies may adapt their business models to comply with revised reimbursement rates and service criteria.