Three reimbursement changes to watch in 2017

http://managedhealthcareexecutive.modernmedicine.com/managed-healthcare-executive/news/three-reimbursement-changes-watch-2017?cfcache=true&ampGUID=A13E56ED-9529-4BD1-98E9-318F5373C18F&rememberme=1&ts=14122016

By far, the biggest change Health Partners’ Donna Zimmerman sees in terms of reimbursement in 2017 is the increased momentum behind bundled payments for orthopedic care.

Zimmerman“Hospitals need to be prepared for more of this,” says Zimmerman, who is senior vice president of government and community relations at the Bloomington, Minnesota-based nonprofit healthcare provider and payer. That’s because employers are increasingly interested in bundled payments for orthopedic and other types of procedures, and they’re often offering incentives related to bundled episodes of care in benefit plans, she says.

Offering a bundled payment option for a joint replacement, in particular, is getting more common. Even with physical therapy that lasts a few months, these are “fairly discrete episodes of care,” says Zimmerman, who adds that bundled payments are particularly attractive to employers and payers since they allow them to manage the total cost of care.

As a result, provider organizations will need to continue to focus on improving their quality scores, since this is one of the primary ways to distinguish their facilities from competing hospitals. In addition to the total cost of care, Zimmerman highlights that payers will be keeping tabs on providers’ complication rates and will adjust the prices they’re willing to pay providers for bundles of care as a result.

Here’s more on how bundled payments will evolve in 2017, and two other reimbursement changes to watch.

No Matter What, Congress Will Act On Health Care Next Year

http://healthaffairs.org/blog/2016/11/07/no-matter-what-congress-will-act-on-health-care-next-year/

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When Congress passed the Medicare Access and Children’s Health Insurance Program (CHIP) Reauthorization Act (MACRA) last year, House Energy and Commerce Committee Chairman Fred Upton (R-MI) said “stick a fork in it; it’s finally done.” While some elements—especially Medicare’s long-flawed Sustainable Growth Rate formula—were permanently remedied, other provisions were temporarily addressed by the bill and come due again in September or December of next year.

So, while the presidential candidates and others consider broad-based health care policies, the passage of which in the near term is dubious, there is a wide array of issues we can bank on Congress taking up, likely in one, consolidated legislative package.

Funding for the CHIP program may be the foremost among these issues, accompanied by a batch of expiring Medicare “extenders” that Congress typically addresses before they lapse. These provisions, which used to reliably hitch a ride on perennial “doc fix” legislation, are expected to travel together in a bill that, along with Food and Drug Administration user fee reauthorizations, is among a few must-pass health bills in 2017. The package will begin to take shape early in the next Congress and ideally gain focus by spring to give states lead-time for budgetary planning, especially with regard to the CHIP and Medicaid components.

Last year, Senate Democrats pushed for a four-year CHIP funding reauthorization, which would have aligned CHIP funding with the Affordable Care Act’s reauthorization of the program itself through 2019. Their efforts fell short in MACRA, although a two-year funding reauthorization keeps the program in the clear until Sept. 30, 2017.

While it’s early to predict what will be included, we anticipate the following potential items will likely be considered in this CHIP funding and Medicare extenders package:

Why Geisinger posts negative physician reviews

http://www.healthcaredive.com/news/why-geisinger-posts-negative-physician-reviews/429810/

Late last month, CMS updated its Overall Hospital Quality Star Rating program, its first update since July. In the update, 112 hospitals are now deemed five-star hospitals, up from 102 five-star hospitals in July but down from 251 in April 2015. As Becker’s Hospital Review noted, the October release includes updated data on patient experience, safety, effectiveness and timeliness of care.

The star ratings are related to patient satisfaction with care experiences based on data from the Hospital Consumer Assessment of Healthcare Providers and Systems Survey (HCAHPS) measures. The survey covers topics such as how well nurses and doctors communicated with patients, how responsive hospital staff were to patient needs, how clean and quiet hospital environments were and how well patients were prepared for post-hospital settings.

Opponents of the ratings have argued they oversimplify complex data and thereby convey misleading information that can harm reputations and reflect unfairly on certain hospitals. However, the move toward value-based care and transparency has led some healthcare organizations – such as Intermountain Healthcare and Geisinger Health System – to publish what patients think of them, for better or worse.

Patient stories have a greater impact on clinicians more than metrics like HCAHPS, Dr. Greg Burke, chief patient experience officer at Geisinger, told Healthcare Dive last week after a panel discussion on patient experience at U.S. News & World Report’s Healthcare of Tomorrow conference.

Geisinger serves more than 3 million residents throughout 45 counties in Pennsylvania. The physician-led system is comprised of approximately 30,000 employees, including nearly 1,600 employed physicians. It’s been in the news a bit lately due to its unorthodox move implementing its ProvenExperience money-back guarantee (It has refunded at least $400,000as of August). Burke stated that Geisinger posts about 97-98% of the comments it receives on the system’s clinicians.

An ACA primer: Much more than insurance

http://www.healthcaredive.com/news/an-aca-primer-much-more-than-insurance/429497/

Remember the Affordable Care Act? Enacted in 2010, it expanded healthcare insurance to millions of uninsured Americans and increased access to care. But the ACA is much more than expanded coverage; it set in motion a variety of reforms in the healthcare delivery systems aimed at lowering costs and improving quality of care.

That fact was lost on presidential candidate Donald Trump, who told Fox News recently, “I don’t use much Obamacare, I must be honest with you, because it is so bad for the people and they can’t afford it.” Trump’s comments imply Obamacare is an insurance plan people can buy, which is not the case. As we wrap up year six since the ACA was enacted, here‘s what the law is really about and how it impacts providers.

Vermont’s all-payer ACO will begin in January

http://www.modernhealthcare.com/article/20161026/NEWS/161029930/vermonts-all-payer-aco-will-begin-in-january

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In January, Vermont will become the first state in the nation to move to a voluntary all-payer accountable care organization model, the CMS announced Wednesday.

The Vermont program is modeled after a similar one from Maryland, but the Maryland program covers only hospitals. The Vermont ACO will cover Medicare, Medicaid and commercial payers, requiring those who participate to pay similar rates for all services.

The CMS is giving Vermont $9.5 million in start-up funding to support the transition. The demonstration, funded through a 1115 waiver, will last five years.

“This model is historic in terms of its scope, aiming to include almost all providers and people throughout the state in an all-payer ACO model to drive improved quality, better care coordination, healthier people, and smarter spending,” the CMS’ Chief Medical Officer Patrick Conway said in a statement.

“We will become the first state in America to fundamentally transform our entire health care system so it is geared towards keeping people healthy, not making money,” said Vermont Gov. Peter Shumlin, who earlier this year traveled to Washington to negotiate a deal with HHS Secretary Sylvia Mathews Burwell.

The state aims to have 70% of its insured residents covered by an ACO by 2022. The model will be considered an advanced alternative payment model under the new Medicare reimbursement program, making participants eligible for a performance bonus.

10 things to know about CMS’ new mandatory cardiac bundle

http://www.beckershospitalreview.com/finance/10-things-to-know-about-cms-new-mandatory-cardiac-bundle.html

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CMS proposed Monday a new mandatory bundled payment program for heart attacks and bypass surgeries that includes changes to the existing Comprehensive Care for Joint Replacement Model as part of its larger goal to shift Medicare from quantity to quality incentives.

Here are 10 things to know about the proposed rule.

Hospitals still confronting RAC backlogs

http://www.fiercehealthcare.com/finance/hospitals-still-confronting-rac-backlogs?utm_medium=nl&utm_source=internal&mrkid=959610&mkt_tok=eyJpIjoiTWpobE5XSmlZemMyWkRjMCIsInQiOiJpQXhSN0R1K3dBWmdacXFyRjlRTXM0RlptYlJFeFo3WitQNUg4U0lOaHUrWmJMWFdnVHZiRkxndDRnVUhXUWtDc1BXQTJ3dWREUGhrYVRkd3VHTjRJYmNlMndwYkllakN3U1FmS25icFllVT0ifQ%3D%3D

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Hospitals continue to contest a large proportion of claims denied by recovery audit contractors (RACs) through the multi-level appeals process, and a backlog of claims continue to clog federal administrative law courts.

According to the most recent data from the American Hospital Association’s RACTrac Survey of 676 hospitals nationwide, 45 percent of denials were appealed through the second quarter of 2016, with 56 percent of those appeals related to inpatient coding denials. That’s down slightlyfrom the first quarter, where 47 percent of denied claims were appealed.

The average dollar value of an automated denial–which are caught through computer algorithms–is $741. Complex denials involve far more money, with an average dollar value of $5,418.

Meanwhile, the appeals process remains sluggish. Nationwide, three-quarters of survey respondents said that administrative law courts have taken longer than the mandated 90 days under federal statutes. In the Upper Midwest, 93 percent of hospitals say the process has taken longer than 90 days. Altogether, 27 percent of all appeals ever filed by hospitals since the RAC program began in 2010 continue to be sitting in the appeals process. In 2014, the feds briefly suspended the program after the number of claims being appealed topped 350,000.

Last year, the Centers for Medicare & Medicaid Services (CMS) offered to settle the backlog of appeals involving disputed short-stay hospital stay for 68 cents on the dollar, for a total settlement of about $1.6 billion.

Nevertheless, hospitals have enjoyed considerable success in the appeals process, with 60 percent of appeals leading to a denial being overturned.

Still, the financial burden of appealing a RAC denial is fairly costly. Twenty-percent of hospital said during the second quarter they spent at least $10,000 on administrative costs related to addressing RAC issues; 12 percent spent more than $25,000, 7 percent spent more than $50,000, and 5 percent spent more than $100,000.

Some seniors surprised to find themselves automatically enrolled in private Medicare plans

http://www.sun-sentinel.com/health/fl-medicare-automatic-plan-conversion-20161005-story.html?utm_campaign=KHN%3A+Daily+Health+Policy+Report&utm_source=hs_email&utm_medium=email&utm_content=35442779&_hsenc=p2ANqtz-_a7vlJ7zABlLxwHbCxWCAeLygJKLQ9GDCnB-7cSgUowrQrzVdpaGgIUqCbuF31bQVHJl19l50y7dVbxpffBEBmuOjTpQ&_hsmi=35442779

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Turning 65 soon? Your mailbox probably is stuffed with ads from health care companies eager to sign you up for Medicare coverage.

Be aware, though: buried in there may be a notice that you are about to be automatically enrolled in an HMO-style, private Medicare Advantage plan by your current insurance company. If you never see that letter, or if you ignore it, you could find yourself locked into coverage that doesn’t cover your doctors or costs you more.

Some insurance companies serving South Florida seniors are considering, or have started, a little-known policy called seamless conversion. Insurers granted approval by the federal Centers for Medicare and Medicaid Services can automatically shift existing members into their Advantage plans when those members become eligible for Medicare.

While CMS requires that beneficiaries be notified in writing at least 60 days in advance, insurers do not need confirmation that the member wants the new coverage before making the switch. Medicare advocates say that blocks seniors from making informed choices.

Seamless conversion was created by Congress almost 20 years ago, as part of the Social Security Act of 1997, but rarely used over the years, said Stacy Sanders, federal policy director for the Medicare Rights Center in New York City. That changed in the 2016 plan year, she said, when CMS sent Medicare Advantage providers letters suggesting conversion was a good option for transitioning low-income seniors and nursing home residents into new state Medicaid managed care programs once their members were eligible for Medicare.

Sanders is concerned that seniors usually will receive seamless conversion notices when they’re most likely to be flooded with Medicare Advantage pitches: during annual open enrollment in October and right before their 65th birthdays.

Hospital Readmissions are Not the Enemy

http://www.healthleadersmedia.com/quality/hospital-readmissions-are-not-enemy?spMailingID=9540993&spUserID=MTMyMzQyMDQxMTkyS0&spJobID=1001565259&spReportId=MTAwMTU2NTI1OQS2

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The Centers for Medicare & Medicaid Services has all but declared war on readmissions. But one researcher suggests that the relationship between readmission rates and quality is flawed.

AHA urges CMS to withdraw Medicaid DSH proposal

http://www.beckershospitalreview.com/finance/aha-urges-cms-to-withdraw-medicaid-dsh-proposal.html

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Click to access 160914-cl-medicaid-dsh.pdf

The American Hospital Association submitted a letter Tuesday to CMS, asking the agency to withdraw a proposed rule to include third-party payments when calculating the hospital-specific limitation on Medicaid disproportionate share hospital payments.

In its proposal, CMS says the rule is simply a clarification on existing policy.

“Specifically, the rule would make clearer in the text of the regulation that uncompensated care costs include only those costs for Medicaid eligible individuals that remain after accounting for payments received by hospitals or on behalf of Medicaid eligible individuals, including Medicare and other third-party payments that compensate the hospitals for care furnished to such individuals,” the proposed rule states.

In the letter to CMS, the AHA argues the proposed rule is more than a clarification and actually establishes new policy. According to the AHA, CMS proposed the rule to avoid potentially unfavorable rulings in cases pending in federal court that address the DSH payment calculation.