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088943 1 (1970-06-03)

handle is hein.gao/gaobacuxg0001 and id is 1 raw text is: ' UNITED STATES GENERAL ACCOUNTING OFFICE REGIONAL OFFICE ROOM 7054, FEDERAL BUILDING 300 NORTH LOS ANGELES STREET Los ANGELEs, CALIFORNIA 90012 JUN 3 1970 ahh.llroiarfie I5111 / I/IM //fill///1 Regional Representative LMO88943 Bureau of Health Insurance Social Security Administration 50 FAlton Street, Room 245 San Francisco, California 94102 Dear Mrsao Kabuz In November 1969, ie discussed with members of your staff our initial observations on the possibility of aiding Medieare bene- ficiaries in getting needed durable medical equipment at lesser cost to them and to the Government0 We pointed out that our work at Occidental Life Insurance Company showed that rental costs for dirable medical equipment often exceeded the purchase priceso This observation was based on our sample of 150 claim files for beneficiaries who obtained durable medical equipment from three major supplierso We are. aware of your concern with the increasing costs of Mdicare and the desire of your organization to control program costs without reducing the services available to beneficiaries* Since the Novenber 1969 meeting, we have completed additional work and have sumaried for your coments certain measures which we believe could be helpful in achieving this objective. RENTAL PAYMENTS EXCEEDED PURCHASE PRICE OF EQUIIJ The Social Security Amendments of 1967 provide for reimbursement under part B of the Medicare program of 80 percent of the costs for durable medical equipment, whether rented or purchased, including iron lungs, oxygen tents, hospital beds, and wheelchairs used in the patients' homes, The SSA Part B Intermediary Hannal states that the beneficiary rather than the carrier, makes the decision to rent or purchase drable idical equipmen6 and may elect to rent even though purchase appears more economicalo

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