Thursday, October 07, 2010
Inside CMS - 08/05/2010

HHS Pulls Final Privacy Breach Rule As Privacy Advocates And Waxman Praise Decision

The Obama administration has pulled a highly controversial final regulation undergoing White House clearance that would have allowed hospitals and other providers to determine if there was "harm" when patient health information was breached, a situation that privacy advocates criticized as "the fox watching the hen house." Key lawmakers had complained in recent months that the breach standard violated congressional intent. The rule pulled from clearance would have finalized an interim final rule that includes the breach standard.
 

Former Geisinger Health Plan CEO To Head CMS 'Value-Based' Policy Efforts

Richard Gilfillan, the former president and CEO of Geisinger Health Plans, has accepted a job directing CMS' performance-based payment policy staff, according to an internal agency e-mail. In this position, Gilfillan will play a key role in the agency's implementation of the new health reform law's delivery system and value-based purchasing reforms.
 

ESRD Rule Delays Bundling Oral Drugs; Keeps 5% Cut To Dialysis Centers

In a win for drug makers, CMS is waiting three years to bundle reimbursement of oral treatments for end stage renal disease that have have no injectible equivalents. Biopharmaceutical companies Amgen and Genzyme had lobbied for a delay, using a health reform law provision to bolster their argument. Big dialysis companies did not fair as well in the rule unveiled by the agency July 26, receiving a 3-percent cut in Medicare payments during the four-year transition, which is on top of the 2-percent statutory cut. Dialysis companies had lobbied against the 3-percent reduction.
 

CMS Links Payment Rates To Quality, Not Just Quality-Measure Reporting

CMS for the first time will link providers' payment rates to the quality of care as part of a proposed rule on the Quality Improvement Program (QIP) for end-stage renal disease. The payment system was dictated to CMS by the Medicare Improvement for Patients and Providers Act in 2008, but the ESRD proposal is similar to the value-based purchasing systems envisioned for hospitals in the new health overhaul law.
 

CMS Issues IPPS Rule With 2.9 Percent 'Coding Creep' Offset; Hospitals Upset

Hospital groups blasted CMS July 30 for moving forward on a final inpatient prospective payment system final rule and interim final rule that offsets payments to hospitals due to "coding creep" that occurred as a result of the Medicare Severity Diagnosis Related Group policy in 2007. This provision cancels out the 2.6 percent market basket update called for in the rule and will result in payments next year that are about $440 million less for the approximately 3,500 hospitals paid under the IPPS.
 

Advocates Ask Congress To Ax Part D Copayments For Dual Eligibles

Assisted living advocates were on Capitol Hill in mid July urging lawmakers to exert pressure on HHS to implement a provision of health care reform that calls for the elimination of Medicare Part D co-payments for dual eligibles in assisted living, sources say. The health reform law calls for HHS to implement the provision no earlier than Jan. 1, 2012 but doesn't provide a deadline, so the department would not be violating the law if the provision never kicked in, Karl Polzer, the senior policy director for the National Center for Assisted Living, told Inside Health Policy.
 

Bipartisan Malpractice Coverage Legislation Moves Through House Committee

A bipartisan plan to extend medical liability coverage to physicians volunteering at free clinics passed the full House Energy and Commerce Committee by voice vote on July 28. The legislation failed twice over the past two years to move through Congress, but staffers are optimistic that the measure will succeed this time.
 

CMS Issues 'Doughnut Hole' Drug Discount Agreement For Drug Makers

CMS will require drug makers to pay disputed discounts for doughnut hole drugs up front, but extended the time period in which the manufacturers must reimburse quarterly invoices to 38 days, more than double the 15 days originally envisioned by agency officials, according to documents released by the agency.
 

Lawmakers Seek National Medical-Legal Partnership Demo

A bipartisan coalition of lawmakers is looking to build on a trend of linking medical providers with attorneys as a way to help patients through the health care process, avoid preventable medical conditions and reduce health care costs. Senate health committee Chair Tom Harkin (D-IA) along with other senators last month introduced legislation that would set aside $10 million for a federal demonstration and evaluation program to bring attorneys into health care settings and integrate preventive law and medicine, and provide legal assistance to providers and patients.
 

Dingell Grills HHS/CMS Officials On HIT Bonus Payments

The author of the Health Information Technology for Economic and Clinical Health Act (HITECH) grilled HHS officials about the law's implementation at a lengthy July 27 hearing on Capitol Hill, focusing on the aggressive timeline set out in the rule to certify electronic health records systems (EHR) and urging HHS to set up the accreditation process as quickly as possible. Implementation of EHR requirements is viewed as a foundation for health reform.
 

Insurers Tout Lower Hospital Readmission Rates In MA Compared To FFS

As new provisions in the health reform law strive to lower readmission rates to hospitals, Medicare managed care plans are highlighting techniques they use -- including transitional care models -- to keep patients home after a discharge and point to data suggesting MA readmission rates are up to 29 percent lower than those in fee-for-service Medicare. Members of America's Health Insurance Plans (AHIP) touted the MA data at a Capitol Hill briefing last week.
 

Burgess Questions Timing Of CMS Actuary's Release Of Reform Bill Cost Data

A Republican House member introduced a resolution last week seeking documents, records and communications from HHS related to any analysis conducted by the CMS chief actuary pertaining to the health reform bill, and specifically a report issued weeks after the March 23 passage of the bill in an effort to determine whether the Obama administration withheld releasing data on the bill days before a final vote.
 

GOP Senators Urge HHS To Pull Griffith Ad Defending Reform Law

Five Republican senators have called for HHS to pull an advertisement featuring Andy Griffith that touts the new health care reform law and makes the allegation that "this year, like always, we'll have our guaranteed benefits."
 

Sanchez Drafts Bill To Hike Home Health Aide Pay, Refueling Years-Long Debate

As home health agencies face scrutiny from the Securities and Exchange Commission, cuts in Medicare reimbursement and enjoy double-digit Medicare margins, a bill introduced July 28 by a Ways and Means Democrat with strong labor support would require them to pay their workers overtime and minimum wages. The bill also charges CMS with crunching the numbers on a plethora of workforce data about the industry.
 

The Vitals

 

FMAP Advances In Senate, Pelosi Calls House Back From Recess

The Senate voted 61-38 on Wednesday to end debate on a bill that includes a six-month extension of enhanced federal Medicaid payments. The measure had been attached to an array of other bills over the past few months, and the cloture vote follows intense lobbying by governors, hospitals and other stakeholders. On news of an impending Senate vote on FMAP, House Speaker Nancy Pelosi (D-CA) tweeted that she will call members back from recess to vote on the measure.
 

Bill Would Allow EHR Payments To Multi-Campus Hospitals

Weeks after HHS made it clear that multi-campus hospital systems would only receive one electronic health record meaningful use payment, a bipartisan bill group of House lawmakers has drafted legislation that would circumvent the agency's rule. The bill's sponsors say the measure has the support of more than 30 members of the Ways and Means and Energy and Commerce committees, including the chairs.
 
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