CY2019 DME Proposed Rule Alters Competitive Bidding Program

CMS has proposed the annual DME rule with revisions to the Competitive Bidding Program (CBP) and for multi-function ventilators that are not part of the CBP. Both proposals are modest positive for industry participants. In addition CMS indicates that the bidding cycle for 2019 will be delayed and prices will be held steady until CMS can conduct the bidding process for an effective date some time after January 1, 2019.Click here to read more.

Recent 340B Program Developments

There have been several recent noteworthy policy and legislative developments related to the 340B drug pricing program. The program, which requires drug manufacturers to sell outpatient drugs at a discount to covered entities, has been under pressure from policymakers as well as lawmakers under the Trump Administration. This brief discusses recent developments related to 340B reform, including a recent GAO report, comments made by HHS Secretary Azar, and recently proposed legislation. Read more here

KY Medicaid Work Requirement Invalidated, States Consider Next Steps

On June 29, a Federal court invalidated parts of Kentucky’s Medicaid waiver, including work requirements for the expansion population. While CMS considers whether to appeal, other states are determining how to proceed with work requirements and other enrollment conditions for the expansion population. Click to read more.

CY2019 Proposed ESRD Rule

CMS has released its annual ESRD proposed rule.  CMS estimates the impact of the proposed CY 2019 changes to be a 1.7% increase in payments – including a 1.5% base rate increase plus a 0.2% increase due to changes in outlier payments. Click to read more.

Medicare Overpays For DME Products Not In Competitive Bidding Program

The Medicare Payment Advisory Commission (MedPAC) recently released a report that compared Medicare rates for durable medical equipment (DME) not subject to competitive bidding to rates paid by commercial plans. MedPAC found that Medicare was paying as much as 20% to 60% higher for some products, such as orthotics, ventilators, and diabetic supplies. MedPAC used a leading national commercial database, Truven MarketScan data for its analysis, using 2015 data. BRG also utilizes Truven’s MarketScan data to analyze commercial rates at the local (Metropolitan Statistical Area), state, and...

2019 PFS Proposal Includes E/M Coding Shakeup

In the past, CMS focused primarily on oversight of individual providers’ coding practices through mechanisms such as the CBRs, audits and compliance enforcement actions. But in the newly released CY2019 Physician Fee Schedule proposed rule, CMS proposes to address these issues through two general changes to outpatient and office E/M codes. Click to read more

Managed Care Friday

1. 6157: The name of a Senate bill in Washington state that forced Regence BCBS to do away with a policy requiring pre-approval for PT, chiropractic, massage, OT and speech therapy for the first 6 visits after an initial evaluation. A source with Evicore, which handles these requests for the insurer, told us it will identify patients who won’t need the authorization in this state. Pre-approval is required for visits after 7 and, due to the policy, an Evicore therapy evaluator said, ‘this sort of makes it harder to get approval for more than 3-5’ unless it’s a youth injury situation or a...

GAO Report & CMS Announcement Focus On Medicaid Program Integrity

A recent CMS announcement and GAO report (June 26 and June 27, respectively) highlighted the need for Medicaid program integrity. The GAO report focused on concerns identified by years of work from 2012 to 2018, while the CMS announcement highlights new initiatives to address some of these area that the GAO has identified. Click to read more.

MedPAC’s Annual June Report to Congress Revisits Long Standing Issues

Every year, MedPAC issues a mandated June Report to Congress which analyzes developments in the Medicare program and makes recommendations for policy changes. This year’s report primarily provides analysis and additional recommendations for what are largely long-standing issues such as hospital readmissions, rural hospital and emergency department financial challenges, payment shifts from specialties to primary care, post acute payment reform, DME competitive bidding, ACOs, and management of dual eligibles. Click to read more.