MedPAC June 2013 Report to Congress: Medicare and the Health Care Delivery System

Similar documents
Protecting Access to Medicare Act of 2014

The Patient Protection and Affordable Care Act (Public Law )

Summary of U.S. Senate Finance Committee Health Reform Bill

The President s and Other Bipartisan Proposals to Reform Medicare: Post-Acute Care (PAC) Reform. Summary

H.R. 3962, the Affordable Health Care for America Act: Issues Affecting Long Term Care November 3, Changes to LTC-Related Funding

The Affordable Care Act

Joint Statement on Ambulance Reform

Health Care Reform Provisions Affecting Older Adults and Persons with Special Needs 3/30/10

Trends in State Medicaid Programs: Emerging Models and Innovations

HCCA South Central Regional Annual Conference November 21, 2014 Nashville, TN. Post Acute Provider Specific Sections from OIG Work Plans

Refining the Hospital Readmissions Reduction Program. Mark Miller, PhD Executive Director December 6, 2013

CRS Report for Congress Received through the CRS Web

January 10, Glenn M. Hackbarth, J.D Hunnell Road Bend, OR Dear Mr. Hackbarth:

HOT ISSUES FACING HOME HEALTH & HOSPICE AGENCIES. Luke James Chief Strategy Officer Encompass Home Health & Hospice

Questions and Answers on the CMS Comprehensive Care for Joint Replacement Model

Transitioning Care to Reduce Admissions and Readmissions. Sven T. Berg, MD, MPH Julie Mobayed RN, BSN, MPH

Hospice Program Integrity Recommendations

Redesigning Post-Acute Care: Value Based Payment Models

Medicaid and CHIP Payment and Access Commission (MACPAC) February 2013 Meeting Summary

I. Coordinating Quality Strategies Across Managed Care Plans

MAXIMUS Webinar Series

Topics to be Ready to Present if Raised by the Congressional Office

Medicare Home Health Prospective Payment System

August 25, Dear Ms. Verma:

September 16, The Honorable Pat Tiberi. Chairman

Paying for Outcomes not Performance

American Health Lawyers Association Institute on Medicare and Medicaid Payment Issues. History of the Physician Fee Schedule

Rural Health Disparities 5/22/2012. Rural is often defined by what it is not urban. May 3, The Rural Health Landscape

Division C: Increasing Choice, Access, and Quality in Health Care for Americans TITLE XV: Provisions Relating to Medicare Part A

Submission #1. Short Description: Medicare Payment to HOPDs, Section 603 of BiBA 2015

MEDICARE FFY 2017 PPS PROPOSED RULES OVERVIEW OHA Finance/PFS Webinar Series. May 10, 2016

Medicaid Update Special Edition Budget Highlights New York State Budget: Health Reform Highlights

Subtitle E New Options for States to Provide Long-Term Services and Supports

The Center for Medicare & Medicaid Innovations: Programs & Initiatives

GAO MEDICARE AND MEDICAID. Consumer Protection Requirements Affecting Dual-Eligible Beneficiaries Vary across Programs, Payment Systems, and States

Alternative Managed Care Reimbursement Models

HEALTH CARE REFORM IN THE U.S.

Reimbursement Models of the Future A Look at Proposed Models

Home Care and Hospice: Payment and Reimbursement Update: AHLA Institute on Medicare and Medicaid Payment Issues

Course Module Objectives

Accountable Care and Governance Challenges Under the Affordable Care Act

The Pain or the Gain?

Moving the Dial on Quality

Decrease in Hospital Uncompensated Care in Michigan, 2015

CMS-0044-P; Proposed Rule: Medicare and Medicaid Programs; Electronic Health Record Incentive Program Stage 2

paymentbasics The IPPS payment rates are intended to cover the costs that reasonably efficient providers would incur in furnishing highquality

MEDICARE ENROLLMENT, HEALTH STATUS, SERVICE USE AND PAYMENT DATA FOR AMERICAN INDIANS & ALASKA NATIVES

BILLIONS IN FUNDING CUTS THREATEN CARE AT NATION'S ESSENTIAL HOSPITALS

QUALITY AND COMPLIANCE

Medicaid Payment Reform at Scale: The New York State Roadmap

Comparison of Bundled Payment Models. Model 1 Model 2 Model 3 Model 4. hospitals, physicians, and post-acute care where

MEDICARE COMPREHENSIVE CARE FOR JOINT REPLACEMENT MODEL (CCJR) Preparing for Risk-Based Outcomes of Bundled Care 8/12/2015.

Forces of Change- Seeing Stepping Stones Not Potholes

Medicare and Medicaid:

ACOs the Medicare Shared Savings Program And Other Healthcare Reform Payment Methods

issue brief Bridging Research and Policy to Advance Medicare s Hospital Readmissions Reduction Program Changes in Health Care Financing & Organization

Using An APCD to Inform Healthcare Policy, Strategy, and Consumer Choice. Maine s Experience

Dobson DaVanzo & Associates, LLC 440 Maple Avenue East, Suite 203, Vienna, VA

REPORT OF THE BOARD OF TRUSTEES

TRANSITION OF NURSING HOME POPULATIONS AND BENEFITS TO MEDICAID MANAGED CARE

Medicaid Simplification

agenda Speaker Introductions Audience Poll Understanding Bundled Payments Importance of Physician Alignment Best Practices for Physician Engagement

Post-Acute Care. December 6, 2017 Webinar Louise Bryde and Doug Johnson

Mandatory Medicaid Services


Piloting Bundled Medicare Payments for Hospital and Post-Hospital Care /

Model of Care Scoring Guidelines CY October 8, 2015

National Multiple Sclerosis Society

2014 MASTER PROJECT LIST

Geographic Adjustment Factors in Medicare

The Movement Towards Integrated Funding Models

Medicare Home Health Prospective Payment System Calendar Year 2015

State advocacy roadmap: Medicaid access monitoring review plans

Home Health Agency (HHA) Medicare Margins: 2007 to 2011 Issue Brief July 7, 2009

Reinventing Health Care: Health System Transformation

MEDICARE INPATIENT PSYCHIATRIC FACILITY PROSPECTIVE PAYMENT SYSTEM

Federal Legislation to Address the Opioid Crisis: Medicaid Provisions in the SUPPORT Act

Re: Rewarding Provider Performance: Aligning Incentives in Medicare

PROPOSED POLICY AND PAYMENT CHANGES FOR INPATIENT STAYS IN ACUTE-CARE HOSPITALS AND LONG-TERM CARE HOSPITALS IN FY 2014

Commissioners' voting on recommendations

Reimbursement Environment

HOME DIALYSIS REIMBURSEMENT AND POLICY. Tonya L. Saffer, MPH Senior Health Policy Director National Kidney Foundation

AGENDA. QUANTIFYING THE THREATS & OPPORTUNITIES UNDER HEALTHCARE REFORM NAHC Annual Meeting Phoenix AZ October 21, /21/2014

Medicare Home Health Prospective Payment System (HHPPS) Calendar Year (CY) 2013 Final Rule

Medicaid-CHIP State Dental Association

The Patient Protection and Affordable Care Act Summary of Key Health Information Technology Provisions June 1, 2010

DECODING THE JIGSAW PUZZLE OF HEALTHCARE

Quality Measures and Federal Policy: Increasingly Important and A Work in Progress. American Health Quality Association Policy Forum Washington, D.C.

Bending the Health Care Cost Curve in New York State:

Physician Compensation in an Era of New Reimbursement Models

Alaska Mental Health Trust Authority. Medicaid

THE IMPACT OF BBA, BIPA and MEDICARE+CHOICE ON LTC (Why Medicare/Medicare Supplement is SHORT-TERM CARE)

Place of Service Code Description Conversion

programs and briefly describes North Carolina Medicaid s preliminary

Person-Centered Accountable Care

Healthy Kids Connecticut. Insuring All The Children

5D QAPI from an Operational Approach. Christine M. Osterberg RN BSN Senior Nursing Consultant Pathway Health Pathway Health 2013

DRIVING VALUE-BASED POST-ACUTE COLLABORATIVE SOLUTIONS. Amy Hancock, CEO Presented to: CPERI April 16, 2018

3/19/2013. Medicare Spending Per Beneficiary: The New Link Between Acute and Post Acute Providers

HEALTH PROFESSIONAL WORKFORCE

Transcription:

MedPAC June 2013 Report to Congress: Medicare and the Health Care Delivery System STEPHANIE KENNAN, SENIOR VICE PRESIDENT 202.857.2922 skennan@mwcllc.com 2001 K Street N.W. Suite 400 Washington, DC 20006-1040 BRIAN LOOSER, ASSISTANT VICE PRESIDENT 202.857.2919 blooser@mwcllc.com 2001 K Street N.W. Suite 400 Washington, DC 20006-1040 www.mcguirewoodsconsulting.com McGuireWoods Consulting news is intended to provide information of general interest to the public and is not intended to offer legal advice about specific situations or problems. McGuireWoods Consulting does not intend to create an attorney-client relationship by offering this information, and anyone s review of the information shall not be deemed to create such a relationship. You should consult a lawyer if you have a legal matter requiring attention.

Table of Contents Chapter 1: Competitively Determined Plan Contributions Chapter 2: Medicare Payment Differences Across Ambulatory Settings Chapter 3: Bundling Post-acute Care Services Chapter 4: Refining Medicare s Hospital Readmissions Reduction Program Chapter 5: Medicare Hospice Policy Issues Chapter 6: Care Needs for Dual-eligible Beneficiaries Chapter 7: Mandated Report: Medicare Payment for Ambulance Services Chapter 8: Mandated Report: Geographic Adjustment of Payments for the Work of Physicians and Other Health Professionals Chapter 9: Mandated Report: Improving Medicare s Payment System for Outpatient Therapy Services Summaries Chapter 1: Competitively Determined Plan Contributions In this chapter, the Commission examined design concepts for a system of competitively determined plan contributions (CPC) in connection with possible benefit redesigns in Medicare. This CPC design approach would include a federal contribution toward the coverage of a Medicare benefit based on a competitive private insurer bidding process and differences in individual premiums dependent on the coverage options beneficiaries choose. The chapter makes clear that competing private plans do not automatically lower overall Medicare costs, which are largely dependent on the characteristics of each market, the model design and the interactions between the models, and that it is possible that the least costly option could include a piecemeal CPC bidding system or require plans to bid on an entire package. Certain design elements are illustrated through examining existing issues in treatment through Medicare Advantage and traditional fee-for-service (FFS) as alternatives. Moreover, as a major barrier to designing a CPC system model that incorporates dual-eligible beneficiaries, the chapter cites a lack of uniformity in Medicaid benefits and cost-sharing elements among states. ; In addition, questions still exist about whether this population should be segmented to better accommodate the competitive bidding process. MACPAC April Meeting Summary Page 2

Chapter 2: Medicare Payment Differences Across Ambulatory Settings Medicare s payment rate can often vary drastically for the same or similar ambulatory services depending on the setting, such as a physician s office or an outpatient department (OPD). The commission maintains that purchasers should not pay more for a service to be performed in a particular setting; instead, Medicare payment rates should be based on the resources needed to treat the patient in the most efficient setting. As many services are migrating from physicians offices to usually more expensive OPD settings, it is urgent that payment variations be addressed. The shift toward OPDs is resulting in higher program spending and beneficiary cost, without significant changes in patient care. This is causing concern over the impact of these policies on hospitals that provide ambulatory services to a disproportionate share of low-income patients, who may be more likely to use an OPD as their source of care. Chapter 3: Approaches to Bundling Payment for Post-acute Care The administration of care for post-acute incidents can vary substantially due to the type, amount and unexpected nature of treatment service after an acute event. Fee-for-service payments foster overuse of service, as there exists little motivation for a provider to curb the total costs to treat a beneficiary following hospitalization. Under a bundled approach, one payment would cover all post-acute care settings (home health care, inpatient rehabilitation hospitals, long-term care hospitals and skilled nursing facilities). The chapter outlines how a system of well-constructed bundled payments for all settings and providers in a designated time window after a triggering event can entice providers to decrease the costs of care across settings while improving the care quality of services beneficiaries receive. Bundle design tradeoffs, such as the scope and duration of the bundle and the payment incentives, are detailed in the chapter, with Commissioners preference largely supportive of inclusive bundles that do not mandate strict infrastructure for making or receiving payments for other providers. Bundling could entail an initial FFS-based approach with a risk-adjusted benchmark and compare a provider s actual spending with an average episode benchmark spending set forth by the Centers for Medicare and Medicaid Services (CMS). Commissioners convey that bundling could help facilitate continued progress toward larger delivery system reforms and increase provider experience with coordinating care across providers and settings.. Chapter 4: Refining Medicare s Hospital Readmissions Reduction Program Following concerns that Medicare readmission rates to hospitals have consistently been too high, Congress enacted a readmission reduction program in 2010. The program includes a penalty that reduces 2013 Medicare payments to hospitals with above-average readmission rates from July 2008 through June 2011. Since enactment there has been a slight decline in readmission rates, but as of 2011, 12.3 percent of Medicare admissions were still followed by potentially preventable readmissions. The Commission has considered four refinements to address the issues with current policy. These include a fixed target for readmission rates; the implementation of an all-condition readmission measure to increase the number of observations while reducing the random variation that single-condition readmission rates face under current policy; the implementation of an all-condition readmission measure to lower the negative correlation between mortality rates and readmission rates that exist for some conditions; and the evaluation of a hospital s readmission rates against rates for a MACPAC April Meeting Summary Page 3

group of peer hospitals with similar shares of poor Medicare beneficiaries, in order to adjust readmission penalties for socioeconomic status. Chapter 5: Medicare Hospice Policy Issues In March 2009, the Commission made recommendations to improve the hospice payment system, including measures to increase accountability in benefits and to enhance data collection systems. The 2008 enactment of the Affordable Care Act (ACA) gave CMS the authority to revise the payment systems for hospice care beginning in fiscal year 2014. As it stands, no regulatory action has been taken to date on payment reform. This chapter on hospice policy issues detailed recommendations for payment reform, accountability improvement and possible payment structure changes for hospice care in nursing facilities. New data cited within the chapter reveals how the labor costs of hospice visits change over the course of a typical hospice stay, giving policymakers a quintessential illustration of how a possible revised payment model could be implemented. Moreover, the chapter also gave attention to the need for medical review process and improved accountability measures for hospice facilities with high numbers of stays that exceed 180 days. An analysis of rates of live discharges and health outcomes by beneficiary and provider characteristics is provided within the chapter, in order to gain a better understanding of what happens to hospice patients after they are discharged. A specific focus of the chapter is recommendations given to profiling the appropriate candidates for hospice care at initial admission and throughout lengthy stays, in order to decrease costs and better coordinate care. The final section of the chapter addressed approaches to reducing the costs of hospice payments and possible payment restructuring for hospice care nursing facilities based on the overlap in responsibility in patient care in these two arenas. Chapter 6: Care Needs for Dual-eligible Beneficiaries Dual-eligible beneficiaries are enrolled in both Medicare and Medicaid benefits and operationally receive medical services through two separate systems. In 2011, approximately 19 percent of the Medicare population was dually eligible for Medicare and Medicaid.. For dual-eligible beneficiaries, there exists a higher-than-average diversity of health needs, ranging from fully healthy to cognitive impairments, physical disabilities, developmental disabilities and severe mental illness. Chapter 6 relays interview data was taken from community health centers (CHCs) and federally qualified health centers (FQHCs) in five states in order to gain a better understanding of the on-the-ground, highcontact and intensive care management programs that are most needed among this subgroup. The chapter discloses the lack of care coordination and communication efforts by physicians for Medicare- Medicaid beneficiaries and the lack of knowledge of Medicare-Medicaid Coordination Plan (MMCP) care managers in social services and other resources in beneficiaries communities. The chapter touts federally qualified health centers and community health centers as being key resources for better coordinating care for dual-eligible beneficiaries, because they provide assorted resources such as care management services, behavior health services and primary care services, usually at the same clinic site. Suggestions for better coordination included financially aligning Medicare and Medicaid benefits and financially aligning those benefits in the context of a comprehensive primary care system. MACPAC April Meeting Summary Page 4

Chapter 7: Mandated Report: Medicare Payment for Ambulance Services Responding to a provision in the Middle Class Tax Relief and Job Creation Act of 2012, the Commission was directed to prepare a number of reports. The first analyzed the impact that add-on payments had on ambulance providers Medicare margins. The Commission looked at three temporary add-ons, as well as two permanent add-ons that apply if the patient is transported from a rural area. The following is a summary of the conclusions arrived at by the Commission through their study: 1) In 2011, the three temporary add-on policies accounted for $192 million of the approximately $5.3 billion in Medicare payments, while the two permanent add-ons were responsible for an additional $220 million. 2) Medicare beneficiaries had little to no difficulty accessing ambulance services, in part due to the increased number of service providers participating in Medicare. 3) Basic life support (BLS) nonemergency services saw quicker growth than more complex transport services. 4) The add-ons currently applied to ground ambulance service are not well targeted. The Commission put forth two recommendations to remedy the issues that were brought to light in their review: to have the temporary add-on payments expire and to have the Secretary take action to address the clinically inappropriate use of certain BLS nonemergency transports, which the Commission says is wasting money. Chapter 8: Mandated Report: Geographic Adjustment of Payments for the Work of Physicians and Other Health Professionals The second report mandated by the Middle Class Tax Relief and Job Creation Act of 2012 looked at whether Medicare should geographically adjust its fee schedules for physicians in different parts of the country. One form of geographic adjustment that was examined was the geographic practice cost index (GPCI) for work effort of the physician. This GPCI is seen by some as beneficial, in that it helps level geographic cost-of-living disparities, but is criticized by those who believe that professionals should receive equal pay for providing equal services, irrespective of location. The Commission concluded that some sort of adjustment for geography is in fact necessary. However the current method, the GPCI, was deemed to be flawed both conceptually and in terms of implementation. Despite these flaws, the official recommendation of the Commission is for Medicare payments for work effort of physicians to be geographically adjusted, but also for the Secretary to begin work on developing a replacement method. Chapter 9: Mandated Report: Improving Medicare s Payment System for Outpatient Therapy Services The Commission was also required to look at Medicare Part B s coverage of outpatient therapy services (physical therapy, occupational therapy and speech-language pathology), which totaled $5.7 billion in spending for 2011. Currently, there are two spending caps placed on each beneficiary, which are designed to curb excess spending. These caps are fairly ineffective, however, because a broad exceptions process provides beneficiaries the ability to go over their cap with relative ease. The Commission s three main findings are: 1) Medicare lacks clarity in defining what types of services should be applied to which patients, and with what frequency; 2) Medicare suffers from weak MACPAC April Meeting Summary Page 5

physician oversight requirements; and 3) there exists great disparity between the highest- and lowestspending areas of the country. To reduce the frequency with which outpatient therapy services are inappropriately applied, the Commission put forth three recommendations. These recommendations would increase physician oversight and would establish a review process that would help eliminate service abuse. The report notes that their proposals would compared to a hard spending cap result in higher Medicare spending. They believe this to be a cost worth bearing, as hard caps could, beyond preventing abuse, limit the therapy services for a patient who medically requires a substantial quantity of services. MACPAC April Meeting Summary Page 6