Over the next several decades the number of people in the United States who are over 65 will increase more than 100 percent. The world amount will increase almost 200 percent. This increase will happen due to baby boomers aging. After WWII there was an increase in the number of babies born. Now, those individuals will begin reaching age 65. This is causing a dramatic shift in many areas, including the healthcare system.
Source: CMS NHE estimates
The increased amount of people over 65 will mean a greater need for healthcare resources. Due to the implementation of the Affordable Care Act, more individuals have access to insurance which will also create a greater need for healthcare resources. The table below shows projected expenses for durable medical equipment as the years progress.
Source: CMS NHE estimates
The desire to be treated at home has increased. This allows patients to convalesce in a more serene setting and reduces costs to hospitals from long-term care costs associated with an extended hospital stay. Home care then requires medical supplies and equipment to be purchased for use at the home. The medical equipment that is required at home can include walkers, canes, scooters and lifts. Additionally, a person might use a prosthetic or need supplies for wound care. These all fall under the heading of durable medical equipment, prosthetics, orthotics and medical supplies (DMEPOS).
The changes in the need for DMEPOS services could bring increased competition within the marketplace. Growth is shown, and with an increase in insured individuals, the focus would shift to proper authorizations and insurance filings. The increased load on the insurance companies could bring changes to regulations concerning DMEPOS authorizations and filings. Working with a trusted company can take the hassle out of any issues that arise due to the increased demand.
Northwood has almost two decades of experience as a Durable medical equipment Benefit Manager (DBM). Northwood works with credentialed and accredited providers offering quality products with a discounted fee schedule without compromising quality. Northwood’s experience with the DMEPOS industry and their network of quality providers can help you navigate the landscape so patients can concentrate on recuperating or convalescing. The years of experience has given Northwood the opportunity to experience changing landscapes due to population shifts and regulation overhauls within the insurance industry. Northwood experienced the shift when the Affordable Care Act went into effect and the changes that occurred when a greater portion of people became insured.
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