US SB1406

Removes oxygen and oxygen-related equipment, supplies, and services from Medicare's competitive acquisition program beginning January 1, 2026, and establishes new fee schedule-based payment rates with annual consumer price index adjustments

Creates a separate, higher payment structure for liquid oxygen at a minimum of 200% of the 2015 fee schedule (updated for inflation), with add-on payments for high-flow patients requiring 6+ liters per minute

Establishes Medicare reimbursement for respiratory therapist services beginning January 1, 2026, with a non-budget neutral add-on payment to cover the cost of these services when clinically appropriate

Requires suppliers to meet detailed service responsibilities including patient evaluations, education, 24-hour on-call coverage, equipment maintenance, portable oxygen access, and coordination of care for traveling beneficiaries

Establishes comprehensive beneficiary rights including supplier choice, monthly notices of remaining rental period obligations, 30-day advance notice before involuntary discharge, and internal/external grievance processes without retaliation