Archive for: e-Newsletters

Unapproved drugs still sold

By: Patient Access Weekly Advisor December 1st, 2008 Email This Post Print This Post

Medicaid still covers drugs not reviewed by the government–about $200 million worth since 2004, the Associated Press reports.

The medications, linked to dozens of deaths, are decades old. The Food and Drug Administration had less restrictive measures then and has tried, to no avail, to eliminate them from the market.

Click here to read more.

Court approves Medicare freeze on payments to Miami home healthcare companies

By: Compliance Monitor December 1st, 2008 Email This Post Print This Post

Medicare will continue to suspend payments to Miami home healthcare agencies suspected of fraud, according to a November 24 Miami Herald article.

A federal judge ruled Medicare’s refusal to pay reimbursement to companies suspected of overcharging for diabetic and other services, which began in October, is reasonable and appropriate.

A home healthcare company sued Medicare following the initial announcement claiming that the program was beyond Medicare’s scope of authority.

According to the article, Medicare estimates it spends $1.3 billion of its $16.5 billion national home healthcare budget on companies based in Miami-Dade County.

Click here to read the Miami Herald article.

Hospitals receive different reimbursements for identical procedures

By: Case Management Weekly December 1st, 2008 Email This Post Print This Post

Some Massachusetts hospitals earn much higher rates than other hospitals in the state for performing the same procedures, even though no proof exists that the care is better, The Boston Globe reports.

Insurance companies such as Blue Cross Blue Shield of Massachusetts and Harvard Pilgrim Health Care pay certain facilities 15% to 60% more than other hospitals on average, and sometimes even twice or three times as much for individual procedures, such as an angioplasty.

For example, Anna Jaques Hospital in Newburyport, MA, earns $75 for a chest x-ray while Massachusetts General Hospital in Boston earns $160 for the same.

The Globe says this process is usually kept under wraps because of confidentiality agreements between hospitals and payers. The newspaper called for more regulated healthcare policies to prevent reimbursement disparities from happening further.

Source: The Boston Globe

Cope with a new MAC

By: Medicare Weekly Update December 1st, 2008 Email This Post Print This Post

By Kimberly Anderwood Hoy, director of Medicare and compliance for HCPro


This week, CMS announced National Heritage Insurance Company (NHIC) as the A/B MAC for the New England jurisdiction (Maine, Massachusetts, New Hampshire, Rhode Island, and Vermont). NHIC was primarily a Part B carrier prior to its selection as an A/B MAC for the northwest (Washington, Oregon, Idaho and Alaska), and now for New England. Many former students have discussed with me the difficulties they have experienced transitioning to a new contractor. This difficulty has been exaggerated in locations where the new contractor was formerly Part B carrier focused. This is presumably due to the very different coding, reimbursement, and even coverage environments of the services provided by suppliers (formerly billed to carriers) and those provided by institutional providers, such as hospitals.

I encourage everyone in these states, and anyone affected by a MAC transition, to review the Special Edition MLN Matters Article SE0837. It discusses steps providers can take to minimize problems during the transition, what to expect for process changes and possible disruptions to cash flow, and how to avoid them. I encourage everyone to pay particular attention to the possible changes to the local coverage determinations, including determinations of self-administered drugs. These may change under a new MAC, and the effective dates of changes can be confusing and have to be monitored closely to ensure you are notifying your patients appropriately of noncovered services.

2009 OPPS/ASC final rule published in Federal Register

By: Medicare Weekly Update December 1st, 2008 Email This Post Print This Post

On November 18, CMS published the CY 2009 OPPS/ASC final rule in the Federal Register. CMS had previously published a display copy of the final rule on its Web site.

View the CY 2009 OPPS final rule.

Comment on the final rule.

CMS replaces transmittal on Medicare deductible, coinsurance, and premium rates for 2009

By: Medicare Weekly Update December 1st, 2008 Email This Post Print This Post

CMS rescinds and replaces previous transmittal on Medicare deductible, coinsurance, and premium rates for 2009

On November 17, CMS rescinded and replaced its November 7 transmittal updating the Medicare deductible, coinsurance, and premium rates for 2009. The new transmittal adds information inadvertently left out in section 20.6 of the manual. The 2009 income parameters for determining the Part B premium were not complete. All other information remains the same.

Effective date: January 1, 2009
Implementation date: January 5, 2009

View the transmittal.

November 17-24: CMS and OIG Issuances

By: Medicare Weekly Update December 1st, 2008 Email This Post Print This Post

Frequently asked questions

On November 21, CMS issued 41 new/updated frequently asked questions related to Medicare fee-for-service payment.

View the frequently asked questions.

CMS selects A/B Medicare administrative contractor (MAC) for New England

On November 19, CMS announced its selection of National Heritage Insurance Corporation (NHIC) as the A/B MAC for Maine, Massachusetts, New Hampshire, Rhode Island, and Vermont. As the A/B MAC contractor, NHIC will immediately begin implementation activities and will assume full responsibility for the claims processing work in its five-state jurisdiction no later than May 2009.

View the CMS press release.

OIG issues report on Medicare billing for oxaliplatin at Franklin Memorial Hospital during calendar years (CY) 2004 and 2005

On November 19, the OIG issued a report in which it determined that Franklin Memorial billed Medicare incorrectly for oxaliplatin in CY 2004. These erroneous claims resulted in a net overbilling to Medicare of $97,968 for oxaliplatin furnished to hospital outpatients during CY 2004.

View the OIG report.

CMS issues proposed decision memo on surgery for diabetes

On November 17, CMS issued a proposed decision memo in which it proposed that type 2 diabetes mellitus is a comorbid condition related to obesity, as defined in NCD Manual 100.1 (Bariatric Surgery for Treatment of Morbid Obesity).

View the proposed decision memo.

View a related press release.

CMS article discusses changes to deductibles, coinsurance rates

CMS has released a MLN Matters article related to changes in the deductible, coinsurance and premium rates for 2009.

To view the article, click here.

OIG issues report on allowable Medicare capital DSH payments for October 1, 2000 through September 30, 2006

On November 7, the OIG issued a report on disproportionate share hospital (DSH) capital payments for the period October 1, 2000, through September 30, 2006. The OIG found that a number of rural hospitals and hospitals with fewer than 100 beds claimed DSH capital payments during this period, even though those facilities were, according to federal requirements, ineligible for these payments.

To read the report, click here.

Universal healthcare model inching closer?

President-elect Barack Obama has selected former Senator Tom Daschle to head the Health and Human Services Department, a move many say is the first step toward a universal healthcare model for Americans, according to a Novermber 20 article in the Wall Street Journal.

In addition, Montana Senator Max Baucus, chairman of the finance committee, which oversees taxes and about 50% of government spending, released a healthcare model similar to that proposed by Obama during his presidential campaign.

To read the story in the Wall Street Journal, click here.

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