Exhibit 99.1
Contact:
Investor Inquiries
Gregory C. Thompson
440-329-6111
Media Inquiries
Lara L. Mahoney
440-329-6393
NEWS RELEASE
INVACARE CORPORATION RESPONDS TO CMS REVISIONS TO POWER MOBILITY
DEVICE FEE SCHEDULE
ELYRIA, Ohio (November 13, 2006) - On November 9, 2006, the Centers for
Medicare and Medicaid Services (CMS) released revisions to previously announced
reimbursement levels for power wheelchairs scheduled to take effect on November
15, 2006. Compared to the previously announced fee schedule, the changes will
significantly improve access to the medically appropriate power mobility devices
(PMD) for disabled consumers of custom rehab products.
The revised fees are significantly higher for many commonly used codes than
the set of fees released on October 2, 2006, particularly in the area of Group 3
(custom rehab) PMDs. In addition, the fee for the most commonly provided
standard geriatric mobility (Group 2) PMD will also increase somewhat by
approximately $300 compared to the fees announced in October, but are still 28%
below prevailing prices. The new fee schedule for PMDs will still take effect on
November 15, 2006, as previously announced.
"Invacare is pleased that CMS listened to the serious concerns and issues
associated with the impact that the October 2, 2006 fees for power mobility
devices would have on consumer access to these devices," said A. Malachi Mixon,
III, chairman and chief executive officer of Invacare Corporation. "The October
2 fees illustrate the fatal flaws inherent in CMS using the gap-fill method to
establish new fees for any products. We look forward to working with CMS to
develop a new method to establish fees for new codes that will ensure
appropriate and continuing beneficiary access. We also look forward to working
with CMS to revise their documentation standards which currently require
providers to obtain onerous levels of physician documentation for power
wheelchair reimbursement."
While there are significant improvements with the November 9, 2006 fees,
there remain issues with several of the codes. For example, within Group 3
products, payment levels for products with single power and multiple power
options will be paid at virtually the same rate. This is despite the fact that
the Group 3 multiple power option products must include more expensive
expandable electronics. In addition, there remain serious payment reductions on
Group 2 consumer power products.
In a positive move, Invacare appreciates the fact that CMS eliminated
Medicare fees for Group 4 and 5 chairs, items that are not typically paid for by
the Medicare Program. State Medicaid programs will need to develop new fee
schedules for codes in these two categories.
"It is amazing to see the industry come together to raise our concerns over
the disastrous initial fee schedule. The tremendous support of disabled consumer
advocate organizations, media and Members of Congress, including Ohio Senators
and Representatives, working with CMS is what helped to make these changes
happen. The revised fees in the area of custom rehab are significantly increased
but generally lower than reimbursement levels today so that providers will still
need to modify their business models to succeed. Consumer Power reimbursement
levels, while increased from the original fee schedule, are still dramatically
reduced from today's level. These changes reduce the credit risk to Invacare in
the custom rehab sector; however, credit risk to the Consumer Power sector
remains," continued Mixon.
Invacare Corporation (NYSE: IVC), headquartered in Elyria, Ohio, is the
global leader in the manufacture and distribution of innovative home and
long-term care medical products that promote recovery and active lifestyles. The
company has 5,900 associates and markets its products in 80 countries around the
world. For more information about the company and its products, visit Invacare's
website at www.invacare.com.
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