The Supplemental Oxygen Access Reform (SOAR) Act of 2025 seeks to significantly improve Medicare's coverage and payment for oxygen and oxygen-related equipment, supplies, and services. A key provision removes these items from the competitive acquisition program starting January 1, 2026, replacing it with new, area-specific payment methodologies. This reform aims to ensure more adequate reimbursement for suppliers, particularly for liquid oxygen, which will receive a separate payment amount with a floor of 200% of the 2015 Durable Medical Equipment, Prosthetics/Orthotics & Supplies Fee Schedule, adjusted for inflation. To enhance patient care, the bill mandates that the Secretary define a comprehensive scope of services suppliers must provide to receive payment. These responsibilities include initial patient evaluations, ensuring access to portable oxygen, providing extensive beneficiary and caregiver education, and offering 24-hour on-call coverage. Furthermore, the legislation adds respiratory therapist services to Medicare's definition of medical services, effective January 1, 2026, and establishes a non-budget neutral add-on payment adjustment to cover these essential services. The SOAR Act strengthens program integrity by requiring the adoption of electronic templates for prescribing practitioners to document medical necessity for oxygen therapy, effective January 1, 2026. These templates will streamline claims adjudication and restore clinical inference in payment audits, moving away from overly restrictive documentation requirements. Additionally, the bill mandates annual notices to beneficiaries detailing cost-sharing obligations and grievance processes, along with monthly notices indicating the remaining months in their rental cap period. Finally, the bill establishes a robust set of beneficiary rights through regulation, ensuring individuals receiving oxygen therapy have greater control and protection. These rights include the ability to choose and change suppliers, receive clear communication, maintain privacy, and be informed about all aspects of their treatment, including the right to refuse or discontinue services. Suppliers will also be required to provide appropriate equipment for mobility, ensure timely repairs, offer emergency plans for power outages, and assist with travel oxygen needs.
The Supplemental Oxygen Access Reform (SOAR) Act of 2025 seeks to significantly improve Medicare's coverage and payment for oxygen and oxygen-related equipment, supplies, and services. A key provision removes these items from the competitive acquisition program starting January 1, 2026, replacing it with new, area-specific payment methodologies. This reform aims to ensure more adequate reimbursement for suppliers, particularly for liquid oxygen, which will receive a separate payment amount with a floor of 200% of the 2015 Durable Medical Equipment, Prosthetics/Orthotics & Supplies Fee Schedule, adjusted for inflation. To enhance patient care, the bill mandates that the Secretary define a comprehensive scope of services suppliers must provide to receive payment. These responsibilities include initial patient evaluations, ensuring access to portable oxygen, providing extensive beneficiary and caregiver education, and offering 24-hour on-call coverage. Furthermore, the legislation adds respiratory therapist services to Medicare's definition of medical services, effective January 1, 2026, and establishes a non-budget neutral add-on payment adjustment to cover these essential services. The SOAR Act strengthens program integrity by requiring the adoption of electronic templates for prescribing practitioners to document medical necessity for oxygen therapy, effective January 1, 2026. These templates will streamline claims adjudication and restore clinical inference in payment audits, moving away from overly restrictive documentation requirements. Additionally, the bill mandates annual notices to beneficiaries detailing cost-sharing obligations and grievance processes, along with monthly notices indicating the remaining months in their rental cap period. Finally, the bill establishes a robust set of beneficiary rights through regulation, ensuring individuals receiving oxygen therapy have greater control and protection. These rights include the ability to choose and change suppliers, receive clear communication, maintain privacy, and be informed about all aspects of their treatment, including the right to refuse or discontinue services. Suppliers will also be required to provide appropriate equipment for mobility, ensure timely repairs, offer emergency plans for power outages, and assist with travel oxygen needs.