Medicare: Effect of Durable Medical Equipment Fee Schedules on Six Suppliers' Profits

Pursuant to a legislative requirement, GAO studied the appropriateness of the payment amounts in the recently implemented Medicare fee schedule payment system for durable medical equipment (DME) used in beneficiaries homes, focusing on: (1) DME suppliers' revenues and profits from their Medicare business and other lines of business; (2) the effect of fee schedule reimbursement on suppliers' Medicare revenues; and (3) major components of suppliers' costs.