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Congress·In Committee·11 months ago

House Bill Would Remove Home Oxygen from Medicare Bidding, Boost Supplier Payments

Also known as: SOAR Act of 2025

Legislative Progress

✓ Filed
Review
House
Senate
President

Impacts

Positive Impacts(6)
Medicare
Helps
Chronic Illness
Helps
Retiree
Helps
Disability Benefits
Helps
Homeowner
Helps
Renter
Helps

State Impacts

AlaskaAK
Positive

The bill sets a specific payment method for oxygen in “non-contiguous areas,” explicitly including Alaska, starting Jan. 1, 2026. This is meant to better cover higher delivery and service costs, which could improve supplier participation and reduce delays for Medicare patients needing home oxygen.

HawaiiHI
Positive

The bill sets a specific payment method for oxygen in “non-contiguous areas,” explicitly including Hawaii, starting Jan. 1, 2026. By better reflecting shipping and service costs, it may help keep more suppliers in the market and improve access to portable and backup oxygen options.

Key Points

  • Starting in 2026, Medicare would stop buying home oxygen through the competitive bidding program, aiming to improve access for people who need oxygen at home or on the go.
  • The bill sets new payment rules for oxygen suppliers, including yearly cost-of-living updates, and special payment rules for liquid oxygen to help keep it available.
  • Suppliers would have to meet clear service requirements to get paid, like portable oxygen access, 24/7 on-call help, safety education, timely repairs, and support when a patient travels or moves.
  • Medicare would start paying separately for respiratory therapist services and add a monthly payment boost to cover those services when they’re medically appropriate.
  • To reduce fraud and confusion, doctors would use an electronic form to prove medical need, and patients would get clearer notices about copays and new rights like choosing or switching suppliers and filing complaints.
Medicare MedicaidHealthcareConsumer Protection

Milestones

2 milestones2 actions
Apr 10, 2025House

Referred to the Committee on Energy and Commerce, and in addition to the Committee on Ways and Means, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.

Apr 10, 2025

Introduced in House

What Happens Next

Projected impacts based on AI analysis

2026-01-01

Medicare stops using competitive-bidding pricing for oxygen items and services

Suppliers would be paid under a new payment method designed to prevent very low rates that can lead to fewer suppliers or fewer delivery options. Patients may see better availability and fewer forced equipment switches.

2026-01-01

New payment amounts for oxygen start, including special rules for rural, Alaska/Hawaii, and territories

If you live far from major cities or in non-contiguous areas, the new payment formula is meant to better reflect delivery and service costs, which may improve access and reliability.

2026-01-01

Respiratory therapist services become a covered Medicare service

Patients who need oxygen may be more likely to get therapist help for setup, monitoring, and safe use—without relying only on supplier education or unpaid caregiver support.

2026-01-01

Medicare begins using a required electronic order template for oxygen medical-need documentation

Doctors and other prescribers would use a standardized online form. Patients may see fewer delays if paperwork is clearer, but some offices may need time to adjust their workflow.

2026-01-01

Medicare sets objective clinical criteria for when liquid oxygen is covered

Patients may get clearer rules for approval (and a clearer appeal path if denied). Depending on the criteria Medicare chooses, some people could find it easier—or harder—to qualify than today.

By 2026 (the bill says ‘not later than January 1, 2026’)

Medicare creates a permanent separate payment amount for liquid oxygen through a public rulemaking process

Suppliers and patient advocates would have a chance to comment. The final rate could strongly affect whether liquid oxygen is widely available, especially for people needing higher flow or more time outside the home.

Related News

3 articles
HME News·11 months ago

Bill introduced to 'maintain and stabilize' oxygen reimbursement

The Supplemental Oxygen Access Reform (SOAR) Act has been reintroduced to remove oxygen from Medicare's competitive bidding program. The bill aims to establish separate payment rates for liquid and non-liquid oxygen and create an add-on payment for respiratory therapy services.

C=
Healio·7 months ago

Protecting patients' rights: Pulmonary nurse urges Congress to pass SOAR Act

The SOAR Act is built on four pillars: making supplemental oxygen more patient-centric, addressing liquid oxygen access for high-flow patients, recognizing respiratory therapy services, and implementing standardized electronic templates to protect against fraud.

C+
CHEST Physician·4 months ago

SOAR Act in limbo while legislators ride out government shutdown

The SOAR Act would remove oxygen equipment from Medicare competitive bidding and establish a separate payment rate for liquid oxygen. Experts argue the current system creates 'needless suffering' by providing bulky equipment that limits patient mobility.

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Source Information

Document Type

Congressional Bill

Official Title

SOAR Act of 2025

Bill NumberHR 2902
Congress119th Congress
ChamberHouse of Representatives
Latest ActionReferred to the Committee on Energy and Commerce, and in addition to the Committee on Ways and Means, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.

Sponsor

Cosponsors

(42)
D: 33R: 9

Analysis generated by AI. While we strive for accuracy, this should not be considered legal or professional advice. Always verify information with official government sources.