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A 2520

Provides parity to durable medical equipment providers by requiring Medicaid managed care organizations to reimburse such providers

2025 Regular Session Introduced by Stacey Pheffer Amato and 56 co-sponsors

Bill A 2520 requires Medicaid managed care organizations to fairly reimburse durable medical equipment providers, improving access to essential supplies for patients.

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Bill Summary · A 2520

Summary of Bill A 2520

Bill Number: A 2520
Title: Provides parity to durable medical equipment providers by requiring Medicaid managed care organizations to reimburse such providers
Status: Tabled
Introduced: January 17, 2025
Classification: Bill

Purpose and Intent

Bill A 2520 aims to establish equitable reimbursement practices for durable medical equipment (DME) providers within the Medicaid managed care framework. The primary intent of the bill is to ensure that DME providers receive fair compensation for the services and equipment they provide to Medicaid beneficiaries, thereby enhancing access to necessary medical supplies for patients.

Key Provisions

  • Reimbursement Requirement: The bill mandates that Medicaid managed care organizations (MCOs) must reimburse DME providers at rates that are consistent with those paid to other healthcare providers within the Medicaid system.
  • Parity in Payment: The legislation seeks to eliminate discrepancies in reimbursement rates that have historically disadvantaged DME providers, ensuring they are compensated fairly for their services.
  • Impact on Providers: By enforcing these reimbursement standards, the bill aims to support the financial viability of DME providers, which is crucial for maintaining a robust supply chain for essential medical equipment.

Who Would Be Affected

  • Durable Medical Equipment Providers: The primary beneficiaries of this bill are the DME providers who supply equipment such as wheelchairs, oxygen equipment, and other necessary medical devices to patients.
  • Medicaid Beneficiaries: Patients relying on Medicaid for their healthcare needs would indirectly benefit from improved access to DME, as providers would be more financially stable and able to offer services without the risk of loss.
  • Medicaid Managed Care Organizations: These organizations would need to adjust their reimbursement policies and practices to comply with the new requirements set forth in the bill.

Legislative Timeline and Actions

  • January 17, 2025: Bill A 2520 was introduced and referred to the Health Committee.
  • April 28, 2025: The bill was reported and referred to the Ways and Means Committee.
  • June 6, 2025: The bill was reported and referred to Rules.
  • June 9, 2025: The bill passed the Assembly and was delivered to the Senate. It was also reported and ordered to third reading.
  • June 12, 2025: The bill passed the Senate and was substituted for companion bill S 1616.
  • October 9, 2025: The bill was delivered to the Governor.
  • October 16, 2025: The bill was vetoed by the Governor.
  • October 17, 2025: The bill was tabled.

Related Bills

  • A 5368: A prior-session bill related to DME reimbursement.
  • A 3408: Another prior-session bill addressing similar issues.
  • S 1616: The companion bill to A 2520, which also sought to address reimbursement parity for DME providers.

Conclusion

Bill A 2520 represents a significant effort to ensure fair reimbursement for durable medical equipment providers within the Medicaid managed care system. While the bill has been tabled and ultimately vetoed, its introduction highlights ongoing concerns regarding payment parity and access to essential medical supplies for Medicaid beneficiaries.

Compiled from official sources — confirm details with the bill’s official record.

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