What legislation mandated the payment methodology for durable medical equipment in 1987?

The correct answer is OBRA, which stands for the Omnibus Budget Reconciliation Act of 1987. This piece of legislation was pivotal in healthcare policy and introduced significant reforms concerning the financing of various healthcare services, including durable medical equipment (DME). Specifically, OBRA established a payment methodology which regulated how Medicare reimbursed providers for durable medical equipment, ensuring that payments were consistent and based on established criteria.

This legislation aimed to address concerns regarding the rising costs associated with healthcare, particularly for long-term care and home health services. By defining the payment structure for DME, OBRA sought to make the system more efficient and accountable, ultimately enhancing patient care.

In contrast, the other options do not specifically pertain to the legislation related to durable medical equipment payment methodologies in 1987. HIPAA, for example, primarily focuses on the privacy and security of health information, CMS is the Centers for Medicare & Medicaid Services responsible for overseeing federal healthcare programs, and COBRA pertains to health insurance coverage continuation under specific circumstances. Each serves distinct functions within the healthcare system, but none is directly linked to the payment regulations for durable medical equipment established by OBRA.