US Medicare to issue sleep, oxygen product rates
WASHINGTON, March 20 (Reuters) - The U.S. Medicare program is scheduled to issue payment rates later on Thursday, a move likely to affect makers of oxygen and sleep apnea devices, including Apria Healthcare Group Inc AHG.N, Lincare Holdings Inc (LNCR.O), and ResMed Inc (RMD.N).
The Centers for Medicare and Medicaid Services, which runs the insurance program for the elderly and disabled, is expected to announce how much it will pay for durable medical equipment, which includes oxygen and sleep products, but also prosthetics, orthotics and other supplies.
Some analysts expect deep cuts.
"We expect significant cuts for sleep apnea, oxygen, hospital beds and diabetes test strips," Stanford Group analyst David Blaszczak wrote in an investor note last week.
The rates will be issued in 10 regions as part of a competitive bidding program. The government said the new rates will result in savings for government's roughly 43 million senior citizens and disabled Medicare beneficiaries.
The bidding program in part aims to prevent "unscrupulous suppliers from participating in Medicare," according to the government's Web site. (Editing by Derek Caney)
