Saturday, September 22, 2012
Inside CMS - 09/20/2012

Hospitals Stake Out Positions In Bid To Quash Proposed E/M Outpatient Cuts

Five major hospital associations are out with a detailed three-page letter urging lawmakers to reject proposals to cap payment for non-emergency evaluation and management (E/M) services in the outpatient department at the same rate as in a physician's office, saying such a move would undermine the shift toward delivery service reform. At the same time, a group of integrated care hospitals is floating an alternative proposal that aims to achieve the same policy goal by requiring providers to attest they are following certain criteria in order to receive outpatient payments, and the proposal applies a two-year moratorium on new attestations. Sources with the American Hospital Association and other groups that signed the three-page letter say they are open to ideas and are considering the alternative proposal, but one hospital source says although "attestation" is fine, the moratorium concept is a non-starter.898 words
 

Consumer Groups Raise Major Concerns As ACA Insurance Summary Rules Set To Kick In

Consumer groups are once again pushing the Obama administration to make several changes in the near future to the health reform law's Summary of Benefits and Coverage document that, starting Sept. 23, must be provided to consumers as a way to give concise information about health insurance. Among their key gripes is the administration's plan to let insurers temporarily use a streamlined calculator to generate information for the SBC's "coverage examples," a policy they say should be abandoned starting January to ensure consumers have "access to more robust estimates per the original rules," according to a Sept. 13 letter they sent to the CMS Center for Consumer Information and Insurance Oversight as well as the Labor and Treasury departments.912 words
 

Medicaid RACs In Over Half Of States, Many With CMS-Approved Modifications

More than half of the states now have Medicaid Recovery Audit Contractors in place, according to CMS, which has revamped its Medicaid RAC website to publicly list the new RACs and offer a state-by-state breakdown of how the health law-required audits are working. An increasing number of states have also received exemptions to delay implementing the program and extend the look back period beyond three years, reveals the website, which CMS plans to refresh on a monthly basis until all the state programs are up and running and then likely will update quarterly.655 words
 

Kids' Hospitals Urge CMS To Allow CHIP As EHB Benchmark

Children's hospitals and advocates are urging CMS to change its proposed approach to essential health benefits by letting states use Children's Health Insurance Program (CHIP) plans as the benchmark package for children, according to a letter they sent to CMS. The advocates say they worry that health insurance plans available to states as benchmarks do not meet the needs of children.548 words
 

Simpson-Bowles Group Launches $25M Campaign For Debt Bill

A bipartisan group founded by former Clinton White House Chief of staff Erskine Bowles and former Sen. Al Simpson (R-WY) has set aside $25 million for a "sophisticated, national campaign to encourage policymakers to pass meaningful debt legislation in the coming months." The two policymakers in December 2010 riled health care stakeholders by touting a plan to cut $400 billion from Medicare, some of which they would have used to permanently repeal the physician payment formula.386 words
 

CMS Official Says Medicaid Blended Rate No Longer Discussed

A CMS official said Thursday (Sept. 13) that CMS is no longer discussing a "blended" federal Medicaid matching rate that would ax the existing varying federal payments in order to create a streamlined rate encompassing existing and newly eligible Medicaid beneficiaries, but a state Medicaid source was not assuaged, saying the agency has little control over such decisions. The White House floated the proposal, estimated to save the federal government about $18 billion over 10 years, last September and also included it in the fiscal year 2013 budget request, which a White House official recently told Inside Health Policy was the deficit reduction plan the president referred to in his convention acceptance speech last Thursday (September 6).414 words
 

CMS Pushes Higher Quality MA Plans; Enrollment, Premium Info Released

A top CMS official said Wednesday (Sept. 19) that the agency will continue its effort to promote enrollment in higher quality Medicare Advantage plans by urging beneficiaries in lower-performing plans to switch to those with higher star ratings and by turning off a button on CMS' web site that allows easy plan re-enrollment. CMS' Jonathan Blum made the comments during a teleconference announcing that MA plan enrollment is expected to grow by 11 percent in FY2013 and that premiums are expected to remain stable. CMS attributes those trends to improved plan quality and aggressive bid negotiations, but others say it's largely because the brunt of the health reform law's MA cuts have yet to take effect and because a bonus-payment demonstration has so far shielded MA plans from those cuts. 488 words
 

Oncology Patients, Docs Head To Hill To Fight Cuts, Urge SGR Fix

Cancer patients, advocates and oncology stakeholders will visit Capitol Hill Thursday (Sept. 20) to lobby against several planned and proposed reimbursement cuts that they say would be devastating to cancer treatment. Among the issues that members of the Community Oncology Alliance and CPAN, the group's patient advocacy network, will bring up are the oncology, diagnostic and radiation cuts in CMS' proposed Medicare physician fee schedule, and a need to avert both the upcoming 27 percent physician payment cuts and budget sequestration. Advocates also will lobby lawmakers to sponsor legislation that would exclude "prompt pay" discounts from Medicare Part B's "average sales price" calculations, which affect reimbursements for drugs administered by oncologists. 604 words
 

First Focus Lobbies To Fund CHIP Programs Running Out Of Money

Children's advocate First Focus plans to lobby for extensions of programs in the Children's Health Insurance Program that will run out of money before CHIP funding expires in 2015. One of these is the Express Lane enrollment program, for which funding expires next year, says First Focus President Bruce Lesley.477 words
 

AHA Survey Shows RAC Claims Denials Rise By 21 Percent

The American Hospital Association held a webinar Tuesday (Sept. 18) to discuss with hospitals the results of the organization's latest RACTrac survey that shows claims denials from Recovery Audit Contractors increased by 21 percent compared with the first quarter of 2012 and continue to grow. One of the most common denials for hospitals, the group's voluntary survey found, are medical necessity claims provided in the wrong setting. The results come as AHA continues to raise concerns on Capitol Hill that RAC denials are forcing hospitals to avoid admitting a patient as an inpatient for short stays, and to instead keep them under observation, an outpatient procedure, due to concerns about providing care in the wrong setting.611 words
 

Several Medicare, Health Reform Programs Exempt From Sequestration

The Obama administration indicated Friday that a handful of Medicare and health reform programs are exempt from the upcoming 8.2 percent sequestration cuts in nondefense discretionary spending, including the bonus program for health information technology, the Pre-Existing Condition Insurance Plan program, subsidies to help people buy insurance in the exchanges, payment to quality improvements organizations, payments to health care trust funds and various low-income programs.443 words
 

Rep. McDermott's Bill Would Pay For Medical School

Rep. Jim McDermott (D-WA), a senior member of the Ways and Means Committee, will unveil legislation Thursday (Sept. 13) that aims to boost the primary care workforce by establishing a federal- and state-funded scholarship program to cover the full cost of medical school -- including a cost-of-living stipend -- for students who agree to practice in medically underserved areas for at least five years. The Restoring the Doctors of Our Country through Scholarships Act (RDOCS) would appropriate an initial $200 million a year for four years of the program, which would be used to cover 90 percent of the costs, and states would be asked to chip in 10 percent.443 words
 

House GOP, Stakeholders Upset By Slow Pace Of Health Reform Law Rules

House Energy and Commerce Republicans are circulating a memo that criticizes the Obama administration for crafting what they call "propaganda" rather then responding to the slew of questions from governors, Medicaid directors and other stakeholders regarding the Medicaid expansion and the reform law's insurance exchanges. The memo, sent out Friday (Sept. 14), followed a House Ways and Means Committee hearing during which GOP members and some stakeholders argued that the lack of final rules on several important issues is impeding states from making important decisions.768 words
 

Former Clinton Aide: Obama Would Be Flexible On Medicaid Expansion

If he's re-elected, President Obama would give states the flexibility they need to expand Medicaid without busting state budgets because because more than half of the health reform law's coverage expansion is on the backs of Medicaid, former Clinton health care aide Len Nichols said Wednesday (Sept. 12). There is no way states will be able to expand Medicaid to the extent that was called for in Affordable Care Act, said Nichols, who is the director of the Center for Health Policy Research and Ethics at George Mason University.566 words
 

CMS Officials Offer Hints On DSH, Medicaid Phase-In Policies

CMS Medicaid chief Cindy Mann on Thursday (Sept. 13) strongly suggested that the administration does not intend to allow states to expand their Medicaid population to levels below the 138 percent threshold in the health reform law, at least for the first three years during which the federal government will pay 100 percent of the cost for newly eligible beneficiaries. Mann also affirmed that CMS was in the process of drafting a proposed rule on another key issue related to the Medicaid expansion -- if the agency would consider a state's decision on expansion when determining reductions to the disproportionate share hospital payments -- but she gave no indication of where the agency would land. Another Medicaid official, however, said at a separate event that the agency was leaning toward not treating states differently on DSH reductions regardless of the whether a state chooses to expand its Medicaid program.590 words
 

Vitals

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GPhA Seeks To Add Provision Allowing FDA User Fee Collection To CR

The Generic Pharmaceutical Association is working to ensure a provision allowing FDA to fully collect user fees for generic drugs and biosimilars is included in a final continuing resolution after the House failed to include the measure in its bill that was on the House floor Thursday (Sept. 13). Industry officials remain hopeful that Senate lawmakers will include the measure when the upper chamber takes up the CR next week, but some sources say any changes to the CR at this point are unlikely.830 words
 
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