Sponsors (52)
The bill increases safety, transparency, and access for Medicare oxygen patients (and formally recognizes respiratory therapist services) and makes payments more predictable — but it raises Medicare and taxpayer costs and imposes compliance and administrative burdens that could increase prices or reduce supplier participation, particularly in rural areas.
Medicare beneficiaries who use supplemental oxygen will get standardized, predictable Medicare payments under the DME fee schedule (with CPI-U updates) and a separate transitional/floor payment for liquid oxygen, reducing payment uncertainty for suppliers and beneficiaries.
Medicare will cover respiratory therapist services for oxygen-related care (with a monthly add-on payment to hospitals/DME providers), improving access to assessment, treatment, monitoring, and continuity of care for patients on oxygen.
Suppliers will be required to provide more comprehensive services (evaluation/training, 24-hour on-call, timely delivery/repair/replacement, maintenance per manufacturer guidance, emergency backup plans), which should reduce treatment interruptions and improve patient safety.
Removing oxygen from the competitive acquisition program, establishing higher payment floors/transitional rates, and adding a non‑budget‑neutral add-on will increase Medicare spending and costs to taxpayers and the program.
Stronger service and compliance requirements, plus higher operational costs for suppliers, could drive some suppliers out of the market or discourage participation—especially in rural/non‑contiguous areas—reducing local access and choice for beneficiaries.
Complex, area‑specific blended payment formulas, required rulemaking, monthly/annual notice duties, and additional CMS oversight create substantial administrative and implementation burdens for CMS, contractors, and providers.
Based on analysis of 8 sections of legislative text.
Removes supplemental oxygen from Medicare competitive bidding, restores fee‑schedule payments with area‑specific rates starting Jan 1, 2026, adds respiratory therapist coverage and patient protections, and updates documentation and notices.
Introduced April 10, 2025 by David G. Valadao · Last progress April 10, 2025
Removes supplemental oxygen and related equipment, supplies, and services from Medicare’s competitive acquisition program and returns payment for those items to the durable medical equipment (DME) fee‑schedule/payment rules effective January 1, 2026. Establishes new, area‑specific payment methods for 2026 and later, creates Medicare Part B coverage and a non‑budget‑neutral add‑on payment for respiratory therapist services tied to oxygen care, requires a standardized electronic prescribing template and monthly rental‑period notices for beneficiaries, and directs the HHS Secretary to issue patient‑rights and supplier‑obligation rules for oxygen therapy recipients. The bill affects Medicare beneficiaries who use supplemental oxygen, DME suppliers, prescribers, respiratory therapists, and Medicare contractors by changing how oxygen-related items are paid, how coverage and medical‑necessity documentation are submitted and audited, and by adding consumer protections and supplier responsibilities under Medicare Part B starting in 2026.