Department of Health and Human Services, Centers for Medicare and Medicaid Services: Medicare Program; Conditions for Payment of Power Mobility Devices, Including Power Wheelchairs and Power-Operated Vehicles

GAO-06-650R: Apr 12, 2006

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GAO reviewed Centers for Medicare and Medicaid Services' (CMS) new rule on conditions for payment of power mobility devices, including power wheelchairs and power-operated vehicles. GAO found that (1) the rule defines the term "power mobility devices" as power wheelchairs and power operated vehicles and sets forth revised conditions for Medicare payment and who may prescribe the devices; and (2) CMS complied with applicable requirements in promulgating the rule.

Department of Health and Human Services, Centers for Medicare and Medicaid Services: Medicare Program; Conditions for Payment of Power Mobility Devices, Including Power Wheelchairs and Power-Operated Vehicles, GAO-06-650R, April 12, 2006

B-298200

April 12, 2006

The Honorable Charles E. Grassley
Chairman
The Honorable Max Baucus
Ranking Minority Member
Committee on Finance
United States Senate

The Honorable Joe Barton
Chairman
The Honorable John D. Dingell
Ranking Minority Member
Committee on Energy and Commerce
House of Representatives

The Honorable William M. Thomas
Chairman
The Honorable Charles B. Rangel
Ranking Minority Member
Committee on Ways and Means
House of Representatives

Subject: Department of Health and Human Services, Centers for Medicare and Medicaid Services: Medicare Program; Conditions for Payment of Power Mobility Devices, Including Power Wheelchairs and Power-Operated Vehicles

Pursuant to section 801(a)(2)(A) of title 5, United States Code, this is our report on a major rule promulgated by the Department of Health and Human Services, Centers for Medicare and Medicaid Services (CMS), entitled –Medicare Program; Conditions for Payment of Power Mobility Devices, Including Power Wheelchairs and Power-Operated Vehicles— (RIN: 0938-AM74). We received the rule on April 5, 2006. It was published in the Federal Register as a final rule on April 5, 2006. 71 Fed. Reg. 17021.

The rule finalizes an earlier interim final rule that defines the term –power mobility devices— as power wheelchairs and power operated vehicles and sets forth revised conditions for Medicare payment and who may prescribe the devices.

Enclosed is our assessment of the CMS's compliance with the procedural steps required by section 801(a)(1)(B)(i) through (iv) of title 5 with respect to the rule. Our review indicates that CMS complied with the applicable requirements.

If you have any questions about this report, please contact James W. Vickers, Assistant General Counsel, at (202) 512-8210. The official responsible for GAO evaluation work relating to the subject matter of the rule is Marjorie Kanof, Managing Director, Health Care. Ms. Kanof can be reached at (202) 512-7101.

signed

Kathleen E. Wannisky
Managing Associate General Counsel

Enclosure

cc: Ann Stallion
Regulations Coordinator
Department of Health and
Human Services


ENCLOSURE

ANALYSIS UNDER 5 U.S.C. sect. 801(a)(1)(B)(i)-(iv) OF A MAJOR RULE
ISSUED BY THE
DEPARTMENT OF HEALTH AND HUMAN SERVICES,
CENTERS FOR MEDICARE AND MEDICAID SERVICES
ENTITLED
"MEDICARE PROGRAM; CONDITIONS FOR PAYMENT OF
POWER MOBILITY DEVICES, INCLUDING POWER WHEELCHAIRS
AND POWER-OPERATED VEHICLES"
(RIN: 0938-AM74)

(i) Cost-benefit analysis

CMS performed a cost-benefit analysis of the final rule that shows that the result of the rule should be reduced sales of $84 million for power mobility devices and increased sales of $35 million for power operated vehicles.

(ii) Agency actions relevant to the Regulatory Flexibility Act, 5 U.S.C. sections 603-605, 607, and 609

The Administrator of CMS has certified that the final rule will not have a significant economic impact on a substantial number of small entities.

(iii) Agency actions relevant to sections 202-205 of the Unfunded Mandates Reform Act of 1995, 2 U.S.C. sections 1532-1535

The final rule does not contain either an intergovernmental or private sector mandate, as defined in title II, of more than $120 million in any one year.

(iv) Other relevant information or requirements under acts and executive orders

Administrative Procedure Act, 5 U.S.C. sections 551 et seq.

The rule finalizes the interim final rule that was published on August 26, 2005, in the Federal Register. 70 Fed. Reg. 50940. In response, CMS received 65 comments, which are discussed in the preamble to the final rule.

Paperwork Reduction Act, 44 U.S.C. sections 3501-3520

The final rule contains an information collection that was submitted to the Office of Management and Budget (OMB) for approval under the Paperwork Reduction Act in connection with the interim final rule. OMB has approved the collection and assigned OMB No. 0938-0971.

Statutory authorization for the rule

The final rule is promulgated pursuant to the authority found in sections 1102, 1834, and 1871 of the Social Security Act (42 U.S.C. 1302, 1395m, and 1395hh).

Executive Order No. 12866

The final rule was reviewed by OMB and found to be an –economically significant— regulatory action under the order.

Executive Order No. 13132 (Federalism)

CMS states that it has reviewed the rule and it does not contain federalism implications.

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