Sector Wrap: Medical equipment makers

Shares of companies that make medical equipment used by seniors rose Thursday as members of Congress considered a massive bill controlling spending for the Medicare program.

Senate Democrats tried to hold a vote on a $20 billion bill that outlines funding for the Medicare program, which provides health coverage to 44 million U.S. seniors. Because Republicans have proposed their own spending plan, lawmakers could not agree to move forward on the issue.

But shares of companies that make wheelchairs, oxygen machines and other medical equipment rose in afternoon trading as lawmakers on both sides of the aisle signaled they would delay a program that threatens company profits.

The program, which would take effect in July, is designed to save the government money by requiring that companies offer competing bids for Medicare's business. Previously Medicare paid a set fee to all equipment sellers.

Wall Street expects the bidding program to lower payments to companies like Invacare Corp., which makes wheelchairs and oxygen tanks, and Lincare Holdings Inc. and Apria Healthcare Group Inc., which deliver oxygen to seniors' homes.

Sens. Max Baucus, D-Mont., and Charles Grassley, R-Iowa, who are the leaders on the Medicare issue in the Senate, said they agree the bidding program should be delayed. And their counterparts in the House introduced legislation Wednesday that would halt any bidding until 2010.

Shares of Invacare Corp. rose 45 cents, or 2.4 percent, to finish at $19.63, while Apria Healthcare Group Inc. rose 91 cents, or 5.9 percent, to $16.46. Lincare Holdings Inc. shares rose 69 cents, or 2.6 percent, to end at $27.59.