Friday, October 08, 2010
Inside CMS - 09/30/2010

Beneficiary Advocates Worry About Treatment Of Duals In ACOs

Medicare beneficiary advocates have raised concerns with administration officials that many providers in accountable care organizations (ACOs) may not be Medicaid providers and as a result dual-eligible beneficiaries could end up paying for Medicare "cost sharing" that is supposed to be paid for by Medicaid. The goal of ACOs is to coordinate patient care, and beneficiary advocates say dual eligibles are the population in greatest need of coordinated care, but including too few Medicaid doctors in ACOs would discourage that very population from seeking treatment within ACOs.
 

California MAC Proposes Diagnostic Coding Plan That Worries Labs

The Medicare Administrative Contractor (MAC)for California recently proposed a program that laboratories worry could make it more difficult to get Medicare to pay for molecular diagnostics, according to a California laboratory representative, including possibly requiring clinical trials for coverage approvals. Because California has the greatest number of labs performing molecular diagnostic services, local coverage policies in that state have a broader effect.
 

AMA Requests 13-month Pay 'Patch' For Medicare Payments

The American Medical Association sent a letter Wednesday (Sept. 29) asking House and Senate lawmakers for a 13-month physician pay "patch" that would block Medicare payment reductions to doctors in 2011, a move sources say signals AMA's acknowledgment that a permanent repeal of CMS' sustainable growth rate formula used to pay physicians is unlikely to materialize in the near term. The letter was signed by all of the state medical societies and 65 national medical societies.
 

Value-Based Modifier Concerns Center On Use Of Claims Data

Providers urged CMS to not rely on claims data to measure their performance as the agency moves toward a system, required by the health reform law, that pays providers based both on the cost and quality of care they provide. Instead, they told the agency at a Sept. 24 meeting that it should use real "quality data."
 

CMS: All Drug Makers To Participate In Coverage Gap Program

CMS officials confirmed Thursday afternoon that all brand-name drug makers have signed contracts with CMS to provide a 50 percent discount for scripts provided in the Part D coverage gap during 2011. Deputy CMS Administrator Jonathan Blum said, however, that some companies that provide repackaging and relabeling of drugs have decided not to sign the agreement. Blum told Inside Health Policy that top clinical experts at the agency have advised that these contracts were not necessary since patients will still have access to all branded products next year.
 

Stark Urges CMS To Consider Suggested Changes To DME Bidding Program

Rep. Pete Stark (D-CA), chair of the House Ways and Means health subcommittee, is urging CMS to consider recommendations by auction experts to revamp the competitive bidding program for durable medical equipment. CMS is supposed to announce the winning bidders of that program by early next week, and it's not clear whether Stark's request will delay the announcement.
 

AHIP Floats ACO Antitrust, Market Power Proposals

Antitrust attorneys gathered earlier this month to discuss the challenges posed by the formation of accountable care organizations and the general consensus among the lawyers was that, if ACOs save money and improve quality for patients, the Federal Trade Commission and the HHS Inspector General won't prosecute. America's Health Insurance Plans used the discussion to make specific recommendations to CMS and the FTC in advance of an all-day meeting the agencies are sponsoring Oct. 5.
 

CMS Touts MA Plan Stability, Slight Premium Decreases

The Obama administration touted improvements in the Medicare Advantage and prescription drug programs, citing a slight drop in 2011 MA premiums, and trumpeted increased oversight that resulted in seven plans from three plan sponsors dropping out of the program, while hundreds more improved bids and plan offerings and will remain in the Medicare managed care program.
 

Coverage Gap Discount Questions Remain

CMS announced the manufacturers who have signed contracts to provide a 50-percent discount for branded drugs provided in the prescription drug coverage gap, even as stakeholders continue to have questions about the program. Although the Sept. 1, 2010 deadline for manufacturers to sign agreements to provide the discounts for branded drugs in the Part D coverage gap has come and gone, stakeholders have questions about how certain newly approved FDA drugs will be treated under the program.
 

Providers Issue 'F' To Contractors For Enrollment, 'B' For Audits, Payment

Providers who participate in fee-for-service Medicare gave a failing grade to the enrollment activities of the various companies who serve as CMS contractors, according to a survey of 18,000 Part B respondents.
 

Gilfillan Tapped As Acting Director Of CMS' New Innovation Center

Rick Gilfillan, the former president and CEO of Geisinger Health Plan and head of CMS' value-based purchasing program, has been tapped as acting director of the Center for Medicare/Medicaid Innovation, responsible for key elements of the health reform law. The appointment was applauded by key stakeholders, who pointed to him as a leader in delivery system innovations.
 

CMS To Screen Medicare Providers As Part Of Health Reform Fraud Mandate

CMS on Monday unveiled a proposed rule implementing parts of the health reform law that strengthens the agency's enforcement abilities and expands its authority to prevent fraud and waste in Medicare, Medicaid and CHIP. The new rule is focused on moving the agency away from reacting to fraud and waste to working with the Office of the Inspector General to use screening and enrollment moratoria to prevent fraud and waste.
 

CMS Proposes Rule To Open Up Reviews Of Medicaid Demonstrations

A proposed rule aimed at creating a more open process for determining whether states may conduct demonstration programs envisioned in the health care overhaul law was unveiled Thursday (Sept. 16) by CMS. The agency in the past has been secretive about denials of 1115 waiver programs, and the new proposed regulation is designed to align incentives in the Medicare and Medicaid programs, according to a CMS official.
 

Lawmakers Urge CMS To Hike Anesthesiologists' Payment

Large bipartisan groups of lawmakers in the Senate and the House are urging CMS to increase Medicare payments for anesthesia services, but so far the agency appears to be resisting the pressure, according to stakeholders. Medicare payment for anesthesia services represents 33 percent of commercial insurance payment rates, the lawmakers said, compared with about 80 percent for other physician services, and anesthesiologists say changes that CMS is proposing to the Physician Fee Schedule will reduce payments even further.
 

Home Health Agencies Urge CMS To Delay Face-To-Face Requirement

Home health providers are urging CMS to delay implementing the new health care law's requirement that physicians see patients in-person before certifying the need for home health, an industry source says. Industry wants more time to work out a more lenient approach, but the Medicare Payment Advisory Commission believes the CMS proposed rule to implement the law is already too lenient.
 

Advocates Upset By Loose 'Essential Health Benefits' Requirement

Patient advocates worry that HHS' decision not to specifically define "essential health benefits" in its interim final rule on the so-called Patients Bill of Rights could leave patients vulnerable to insurance limits on critical care and are urging the agency to take steps to ensure a broad set of benefits is covered.
 

The Vitals

OIG Threatens Fines For Late Drug Pricing Data
 

CMS Backtracks On 'Recapture,' Lets States Keep Some Medicaid Rebates

CMS informed state officials Tuesday that it no longer plans to "recapture" the revenue states collect from certain Medicaid rebates, bowing to state Medicaid directors who said the agency's plans would have violated "both the letter and the apparent intent" of the health reform law. The federal government will not claim rebates that exceed the new federal minimum, CMS said in a memo to state Medicaid directors.
 

Enzi's Effort To Undo Grandfathering Reg Falters

Democrats easily blocked a GOP attempt to use the Congressional Review Act to repeal the HHS' regulation defining a "grandfathered" commercial health plan under the health reform law. GOP lawmakers, including Sen. Mike Enzi (R-WY) who authored the resolution of disapproval, argued that the regulation was overly burdensome and violated President Barack Obama's oft-repeated mantra that families may keep their coverage if they like it. Democrats and the administration countered that dismantling the rule would create "confusion and uncertainty" for employers, workers and families.
 

House Passes Medicare Fraud Bill Letting OIG Target Company Executives

The House on Sept. 22 approved bipartisan legislation expanding the HHS Office of Inspector General's ability to ban corporate executives from the Medicare program if their companies have been convicted of fraud, authority the OIG recently requested from Capitol Hill. The move came as the House Energy and Commerce Committee held a hearing on additional proposals to give HHS fraud-fighting tools beyond those in health reform, including allowing CMS to use private insurance data mining techniques that identify potential scams before payment is made.
 

MedPAC Study Explores Reliability of Cost Profiling In Medicare

Cost profiles of Medicare physicians are "substantially" more reliable than profiles of commercial physicians, according to a report commissioned by the Medicare Payment Advisory Commission. A RAND researcher who worked on the study that the MedPAC report was modeled after said, however, that resource use profiling of physicians in the Medicare program is only slightly better than in the private sector.
 
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