Tariffs: A New Challenge for DME Providers

For years, tariff discussions have centered around global trade and supply chain headaches. But now, they’re hitting home for DME and HME providers. Dive in as we break it down.

Tariffs Are Raising Base Product Costs (by a Lot)

According to AAHomecare, new tariffs on medical equipment could drive product costs up by more than 10%. The most recent tariffs from April will hit even harder.

In an industry where margins are already razor-thin, that increase isn’t just a nuisance. It’s an existential threat. Additionally, we aren’t considering luxury items or elective care - we’re talking life-sustaining equipment for patients across the country.

Reimbursement Isn’t Keeping Pace

Reimbursement is where the real issue lies. Medicare and private payers aren’t adjusting reimbursement rates fast enough to reflect these rising costs. That gap creates a lose-lose situation:

• Providers are expected to furnish equipment at a financial loss.
• Patients face delays or denials when providers can’t afford to fulfill the orders.

If you’re running a DME business, you know what this looks like. You’re caught between regulatory compliance, patient need, and unsustainable costs.

And there’s no clear relief unless one of two things happens soon:

1. Exemption Reform

AAHomecare is pushing for tariff exemptions on essential medical equipment. That’s a start. But exemptions take time, and sometimes, they don’t come through.

2. Reimbursement Reform

Reimbursement needs to flex with the current market realities. Tariffs may start at the port, but they end at the claim… and that claim better cover the real cost of care.

Patient Access, Especially in Rural and Underserved Areas

If providers can’t stay solvent, they’ll have to cut back.

That could mean limiting coverage areas, dropping certain product lines, or closing altogether. In underserved communities, that could leave patients with no access to essential DME at all. This isn’t just about business: it’s about basic healthcare and patient outcomes.

All of that is at risk if policy doesn’t catch up with the economic reality.