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MEDICARE UPDATE WSMOS March 11 2011 Bernice Hecker, MD, MHA, FACC Overview • CMS & ACA: Increase access to valuable services • Identify Value – Pay for Value Programs – LCDs (Comparative Effectiveness) • Control Costs – MAC – Prevention of Disease – PFS Changes – Anti Fraud & abuse (MD Signatures, OIG) Januar11 NAS, LLC Proprietary 2 CMS: Cares about Medicare Service(s) • • • • CMS attitudes = Congressional beliefs Sky high costs and plummeting access MDs as key to access & cost Help or Hindrance – CMS comments – Assist local Contractors – Medical society advocacy – AMA/other Winter 2011 NAS, LLC Proprietary 3 INCREASE ACCESS: ACA • Shift dollars by shifting incentives – Pay for Value – LCDs & other comparative effectiveness efforts – Specialists vs. primary care • Payment reform – PFS changes – ACO – Medical Home Winter 2011 NAS, LLC Proprietary 5 COST CONTROL • MAC – FAR & Competitive Bidding – Consolidation – Staff efficiencies and reductions • ACA – Prevention of disease – Delivery system – Payment reform – Fraud & abuse Winter 2011 NAS, LLC Proprietary 6 VALUE Physician Quality Reporting System (PQRS) • Formerly referred as PQRI (Incentive) • 1% payment bonus continues for 2011 • 194 total measures – 5 new measures – claims/registry reporting – 11 new registry – only measures – 4 new measures - Electronic Health Records (EHR) based reporting only – 5 deleted measures • 20 EHR measures – 14 measures groups (e.g. Asthma = new measure) January 2011 NAS, LLC Proprietary 8 LCDs 1/3 • Draft – B-Natriuretic Peptide (BNP), comment 4/22 – Vertebral Augmentation Procedures • Retirements – CT Colonography – MD CTA (Multidetector CT Angiography) – Plastic Surgery – Artificial Disc (Non-Covered Services) – Endoscopic Treatment of GERD (NonCovered Services LCD) Winter 2011 NAS, LLC Proprietary 10 LCDs 2/3 • Retirements (cont.) – Stereotactic Body Radiation Therapy – Stereotactic Computer-assisted Volumetric Navigation – Treatment of OSA – Wireless Capsule Colonography Winter 2011 NAS, LLC Proprietary 11 LCD 3/3 • Potential LCDs – ESI (Epidural Steroids) – Vitamin D Assays • Data Analyses Winter 2011 NAS, LLC Proprietary 12 Dollars COST CONTROL • MAC – FAR & Competitive Bidding – Consolidation – Staff efficiencies and reductions • ACA – Prevention of disease – Delivery system – Payment reform – Fraud & abuse Winter 2011 NAS, LLC Proprietary 14 MAC: Phase 2 • 15 A/B MAC Jurisdictions • 9/15 implemented • 6/15 in protest or corrective actions – 2, 6, 8, 11,15 • J2 (WA) award – Summer 2011 • Re-Bids began last summer - J3 • Consolidation – 15 to 10 – Jur2 + Jur3 = Jur F Winter 2011 NAS, LLC Proprietary 15 New A/B MAC Jurisdictions 14 2 3 13 6 12 8 1 5 15 11 4 10 3 = Start-up 7 N = Cycle One 2 9 1 N = Cycle Two Five Consolidated A/B MAC Contracts • JURISDICTION F- A/B MAC Jurisdictions 2 and 3 (Alaska, Washington, Oregon, Idaho, North Dakota, South Dakota, Montana, Wyoming, Utah, and Arizona) • Jurisdiction H- A/B MAC Jurisdictions 4 and 7 (Louisiana, Arkansas, Mississippi, Texas, Oklahoma, Colorado, and New Mexico) • Jurisdiction G- A/B MAC Jurisdictions 5 and 6 (Minnesota, Wisconsin, Illinois, Kansas, Nebraska, Iowa, and Missouri) • Jurisdiction I- A/B MAC Jurisdictions 8 and 15 (Kentucky, Ohio, Michigan, and Indiana) • Jurisdiction K- A/B MAC Jurisdictions 13 and 14 (New York, Connecticut, Massachusetts, Rhode Island, Vermont, Maine, and New Hampshire) A/B Contracts that are not consolidated • Jurisdiction E- A/B MAC Jurisdiction 1 (California, Hawaii, Nevada, Pacific Islands) • Jurisdiction N- A/B MAC Jurisdiction 9 (Florida, Puerto Rico, US Virgin Islands) • Jurisdiction J- A/B MAC Jurisdiction 10 (Alabama, Georgia, Tennessee) • Jurisdiction M- A/B MAC Jurisdiction 11 (North Carolina, South Carolina, Virginia, West Virginia) • Jurisdiction L- A/B MAC Jurisdiction 12 (Delaware, Maryland, Pennsylvania, New Jersey, Washington DC) Impact: Medical Director • Competition – sharing • Ongoing reassessment of values – U.S., CMS, NAS, personal • More work with less staff • Community support – Risk – Assistance – Idealism vs. Realism Winter 2011 NAS, LLC Proprietary 20 COST CONTROL • MAC – FAR & Competitive Bidding – Consolidation – Staff efficiencies and reductions • ACA: “Affordable Care Access” – Prevention of disease – Delivery system: EHR – Payment reform – Fraud & abuse Winter 2011 NAS, LLC Proprietary 21 Preventive Services • Effective January 1, 2011 • Part B deductible and coinsurance will be waived for most preventive services – Provision waives both for preventive services with a grade of A or B by U.S. Preventive Service Task Force (USPSTF) – Deductible will be waived for tests that begin as screening and change to diagnostic or therapeutic services • I.e. colorectal cancer screening • CR7012 January 2011 NAS, LLC Proprietary 22 Screening Recommendations • Several preventive services covered by Medicare do not have a USPSTF recommendation grade of A or B – Barium enemas provided as colorectal cancer screening tests, coinsurance applies • Screening barium enema, deductible is waived under another section of statute • Deductible and coinsurance apply: – Digital rectal examinations provided as prostate screening tests – DSMT services – Glaucoma screening – Screening electrocardiograms performed for IPPE • Deductible and coinsurance continues to apply to other services January 2011 NAS, LLC Proprietary 23 Annual Wellness Visit • CR 7079 may include the following: – Establish/update medical/family history – List providers/suppliers/medications – Record measurements of height, weight, body mass index, blood pressure & other routine measurements – Detect any cognitive impairment – Establish/update a screening schedule for patient to follow over next 5-10 years – Furnish personalized health advice and appropriate referrals to health education January 2011 NAS, LLC Proprietary 24 New Covered Preventive Service – Annual Wellness Visit 2 • G0438 – Annual wellness visit, including personalized prevention plan services, first visit – Paid at level 4 office visit for new patient (similar to IPPE) • G0439 – Annual wellness visit, including personalized prevention plan services, subsequent visit – Paid at level 4 office visit for established patient January 2011 NAS, LLC Proprietary 25 COST CONTROL • MAC – FAR & Competitive Bidding – Consolidation – Staff efficiencies and reductions • ACA: “Affordable Care Access” – Prevention of disease – Delivery system: Electronic magic – Payment reform – Fraud & abuse Winter 2011 NAS, LLC Proprietary 26 Electronic Health Records (EHR) Calendar Year Maximum Incentive Payments Based on the First CY an EP Participates in the Program 2011 2012 2013 2014 2011 $18,000 2012 $12,000 $18,000 2013 $8,000 $12,000 $15,000 2014 $4,000 $8,000 $12,000 $12,000 2015 $2,000 $4,000 $8,000 $8,000 $2,000 $4,000 $4,000 $44,000 $39,000 $24,000 2016 Total $44,000 For more information: http://www.cms.gov/EHRIncentivePrograms/ January 2011 NAS, LLC Proprietary 27 EHR Payment Adjustments • 2015 payment adjustments begin – EPs do not successfully demonstrate “meaningful use” of certified EHR technology • Payment adjustments will be: – – – – 2015 – 99% of MPFS allowed amount (80%) 2016 – 98% 2017 – 97% By 2018 and subsequent years, if less than 75% of EP’s are meaningful users, payment will change by 1% each year until adjustment reaches 95% January 2011 NAS, LLC Proprietary 28 E-Prescribe (eRx) • Electronic transmission of prescriptions – Takes place between a prescriber, dispenser, pharmacy benefit manager or health plan – Can take place through an intermediary – eRx network – Began in 2009 – came from MIPPA legislation • Medicare Improvements for Patients and Providers Act of 2008 • Promotes adoption/use of eRx systems – eRx provides a combination of incentives and payments adjustments for providers who are not successful electronic prescribers – Details: http://www.cms.gov/ERXincentive January 2011 NAS, LLC Proprietary 29 Electronic Prescribing (E-Prescribing or eRx) • 1% incentive bonus continues for eligible electronic prescriptions • Individual “eligible providers” must still meet qualified system standards • Group option broadened (less than 200) • 2012 starts imposed payment adjustment January 2011 NAS, LLC Proprietary 30 eRx 2 Medicare Incentives for eRx 2011 1% Incentive payment 2012 1% 2013 0.5% eRx Payment Adjustments may occur for not being a successful electronic prescriber 2012 Receive 99% of EP or group practice Part B covered services 2013 Receive 98.5% 2014 Receive 98% It is possible to receive an eRx incentive payment for 2011 AND an eRx payment adjustment for 2012 January 2011 NAS, LLC Proprietary 31 COST CONTROL • MAC – FAR & Competitive Bidding – Consolidation – Staff efficiencies and reductions • ACA: “Affordable Care Access” – Prevention of disease – Delivery system – Payment reform – Fraud & abuse Winter 2011 NAS, LLC Proprietary 32 Reform: Shift Incentives • Primary Care & Gen Surg incentives – Increase access, prevent or early treatment – Medical Home • PFS (Examples) – Bundling of services (card, rad onc) – Imaging Families and TC ↓ – RVU updates • MEI Re-basing • ACOs Winter 2011 NAS, LLC Proprietary 33 Multiple Procedure Payment Reduction on TC of Certain Diagnostic Imaging Procedures • Effective January 1, 2011 • CMS is consolidating existing 11 advanced imaging families into a single family • Applies: – When two or more services on list are furnished to same patient in a single session – Only to Technical Component (TC) portion of global services – Full TC payment for procedure with highest priced TC – 50% for TC of each additional procedure on same patient in same session • CR6993 January 2011 NAS, LLC Proprietary 34 RVUs • RVU = Work, PE, PLI x conversion factor • PPIS (Phys Pract Info Survey) – year 2/4 – Practice Expenses • MEI (Medicare Economic Index): – ↓ Work 52.466 to 48.266) – ↑PE (43.669 to 47.439) – ↑PLI (3.865 to 4.295) EX: ↑Rad Onc Winter 2011 NAS, LLC Proprietary 35 RVUs: Impact on Oncologists • E&M – variable • Drug Administration – 0-1% ↓ • Capture office expense – Know the Fee Schedule Winter 2011 NAS, LLC Proprietary 36 Fee Schedule Lookup Tool • Medicare Physician Fee Schedule (MPFS) tool • CMS enhanced search http://www.cms.gov/apps/physician-feeschedule/overview.aspx • MPFS Search Help – http://www.cms.gov/apps/physician-feeschedule/help/Medicare-Physician-FeeSchedule-Search-Help.pdf January 2011 NAS, LLC Proprietary 37 The investigator and You NAS, LLC Proprietary 39 Signature on Requisitions for Clinical Diagnostic Lab Tests • November 29, 2010 Federal Register final rule proposed policy to require a physician’s or Non Physician Practitioner’s (NPP’s) signature on requisitions for clinical diagnostic laboratory tests paid under clinical laboratory fee schedule • First quarter of 2011, CMS will develop education and outreach materials to build awareness and understanding in physician community – Once first quarter educational campaign is fully underway, CMS will expect requisitions to be signed – http://www.cms.hhs.gov/ClinicalLabFeeSched • JSM/TDL 11097 dated December 20, 2010 January 2011 NAS, LLC Proprietary 40 2011 OIG FOCUS • Place of Service (POS) errors – Services performed in Ambulatory Surgery Centers (ASCs) and hospital outpatient settings • Coding & payments for Evaluation and Management (E/M) services – E&M services during global surgery periods • Portable x-ray suppliers billing • Outpatient physical therapy services provided by independent therapists • Questionable billing for outpatient therapy services • Excessive payments – unusually high claim amounts January 2011 NAS, LLC Proprietary 41 2011 OIG FOCUS 2 • Appropriateness of payments for polysomnography • Payments for sleep testing • Lab test unbundling by clinical labs • Billings with modifier GY • Medicare Secondary Payments (MSP)/other insurance coverage • Brachytherapy reimursement • Observation services during outpatient visits • Part B payments for home health beneficiaries January 2011 NAS, LLC Proprietary 42 2011 OIG FOCUS 3 • Services performed by Clinical Social Workers (CSWs) • Excessive payments for diagnostic tests • Laboratory test unbundling by clinical laboratories • Geographic areas with high density of IDTF’s • Error-prone providers: Medicare Part A & B • CERT for FY 2010 error rate oversight • http://www.oig.hhs.gov/publications/workplan/ 2011/ January 2011 NAS, LLC Proprietary 43 Region D Contractor • HealthDataInsights, Inc. – 7501 Trinity Peak Street, Suite 120 Las Vegas, NV 89128-6896 888-700-3282 http://www.healthdatainsights.com/index.aspx • Subcontractor: PRG Schultz, Inc. NAS, LLC Proprietary 44 CMS RAC Information • CMS Web Site: www.cms.hhs.gov/RAC • CMS RAC Email: [email protected] NAS, LLC Proprietary 45 CERT Help • Websites: – CMS: • http://www.cms.hhs.gov/CERT/ – Noridian: • http://www.noridianmedicare.com NAS, LLC Proprietary 47 Appeal, Appeal, Appeal! • If you disagree with the outcome of the CERT review, appeal the claim! • Appeals will be processed by NAS • No amount is too small, and the outcome may dramatically reduce your facility error rate NAS, LLC Proprietary 48 Thank You….. What Questions Do You Have?