Medicare raises oxygen payments, expands beneficiary rights, locks in supplier duties
S. 1406 — SOAR Act of 2025 · Filed by Bill Cassidy (R-LA) · 8 cosponsors · Introduced Apr 10, 2025 · Referred to committee
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What it does
The SOAR Act amends Medicare's payment and coverage rules for supplemental oxygen equipment and services. It raises reimbursement rates for liquid oxygen to 200% of 2015 fee-schedule levels (adjusted for inflation), requires Medicare to establish objective clinical coverage criteria by January 2026, mandates that oxygen suppliers provide comprehensive services (evaluation, education, 24-hour support, portable equipment access), adds respiratory therapist services as a covered benefit with an add-on payment, adopts electronic templates to streamline medical-necessity documentation, and establishes new beneficiary rights including supplier choice, clear communication, and protection against involuntary discharge.
Why we flagged it
The bill's core mechanism is a payment-rate increase coupled with expanded supplier obligations and beneficiary rights. It is fundamentally a reimbursement and regulatory reform, not a commemorative, tax, or appropriations measure.
What the text implies
- The 200% interim payment rate for liquid oxygen may create a permanent floor expectation; if the final cost-based rate falls below this level, suppliers may lobby to retain the higher interim rate, locking in above-cost reimbursement.
- Respiratory therapist add-on payments are non-budget-neutral, meaning Medicare costs will rise without offsetting cuts elsewhere—potential pressure on other DME or Part B services.
The full analysis lists 5 implications of this text.
Who stands to gain
oxygen equipment suppliers and DME companies; respiratory therapists and respiratory therapy services; home health and hospice agencies providing oxygen services