From: AdvantEdge Healthcare Solutions [AdvantEdge_Healthcare_Solutions@mail.vresp.com]
Sent: Wednesday, April 04, 2012 2:16 PM
To: Susan Vecchi
Subject: CN6 - Washington News - April 2012

WhenPerformance_Matters
CN6 - April 4, 2012                                                         Washington News - All Provider Edition     

IN THIS ISSUE
–––––––––––––––––––––––CMS  Dates & Deadlines
–––––––––––––––––––––––
Reminders

Providers Must Revalidate Medicare Enrollment

eRx Program - 2 Chances to Avoid the 2013 Penalty

PQRS & eRx Incentive Programs - Are you Participating?
–––––––––––––––––––––––
CMS & Goverment  Updates

eRx Program - CMS May Give 2nd Chance on 2012 Payment Penalty

CMS Delays POS Policy Unitl October 1, 2012

The ACA Goes to Court

CMS Pushes Back 5010 Again


House Votes Down IPAB
–––––––––––––––––––––––

New CMS Programs & Legislation


New Program to Bolster Primary Care Workforce

 ––––––––––––––––––––––

            QUICK LINKS

            AHS Website


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 About This Newsletter                                 
    

This newsletter contains articles related to CMS' and other federal government agencies’ regulations and legislation that affect the health care industry, and which may ultimately affect your medical practice.

Click on the topics at right for articles that interest you. 

If you have any questions concerning the articles in this newsletter, please contact your Client Manager.

CMS DATES & DEADLINES:

Date Type Event
May 2012 Comments Due EHR Incentive Program and Meaningful Use - Stage II Proposed Rule
June 2012 Decision Supreme Court to render a decision on ACA law
06/30/2012 Deadline eRx Submission of 10 encounters to avoid 2013 Penalty
Mid-Summer 2012 Final Rule EHR Incentive Program and Meaningful Use - Stage II

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REMINDERS

Providers Must Revalidate Medicare Enrollment 
 

Between now and March 2015, Medicare contractors (MACs) will send out revalidation notices on an intermittent, but regular basis to begin the revalidation process.  In most cases, these notices will be sent directly to the provider and not to AHS.   Failure to complete and submit the enrollment form may result in the deactivation of your Medicare billing privileges.

If you are unsure whether you received a revalidation notice; the following
CMS website (in the DOWNLOADS section) lists all providers who were sent notices from September 2011 through January 2012, as well as all information on the revalidation program.
 
Revalidations Medicare Provider-Supplier Enrollment
 
Please contact your AHS Client Manager upon receiving a notification so AHS may assist you in completing and filing these enrollment applications. Providers will have only 60 days from the date of the notice to submit completed enrollment forms. 

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eRx Incentive Program - Two Chances to Avoid the 2013 Penalty

Submit 10 E-Prescribe Encounters Before June 30, 2012
 
CMS is giving eligible providers another chance to avoid the 2013 payment adjustment of 1.5%.  If you did not qualify last year (January 1, 2011 – December 31, 2011) by submitting the required 25
e-prescribe encounters, you may still qualify by: submitting 10 e-prescribe encounters via code G8553 for service dates between January 1, 2012 June 30, 2012
 
This submission option does not need to be sent with a denominator (CPT) code.  As long as you send your prescription on a qualified e-prescribe system, you may submit the G8553 code alone.   This is beneficial to those providers who do not usually prescribe during one of the 56 eligible
CPT code visits. 

The G8553 code must be reported via claims-based submission and must be processed by Medicare as of July 27, 2012. The 2013 eRx payment adjustment would NOT apply to the following providers:

  • An EP who is not a physician, NP or PA as of June 30, 2012
  • An EP who does not have at least 100 cases (claims for patient services) containing an encounter that falls within the denominator of the eRx measure for service dates of January 1, 2012 – June 30, 2012
  • An EPs Medicare charges to which the eRx measures applies (applicable denominator codes) are less than 10% of an EP’s total Medicare charges.

Hardship Exemptions for the 2013 Payment Penalty
 
CMS has reopened the Quality Reporting Communication Support Page to allow individual eligible professionals (EPs) and
CMS-selected group practices to request a hardship exemption for the 2013 e-prescribing penalty. A new user manual is available to assist individual EPs in submitting their hardship exemption request.
 
If you did not successfully submit 25 e-prescribe encounters to
CMS in 2011 or can not submit 10 encounters between January 1, 2012 and June 30, 2012, because of one of the available hardships, you must submit your hardship exemption to CMS by Saturday, June 30, 2012.

Significant hardship exemptions for payment adjustment years 2013 and 2014 are for providers who:

  • G8642 - practice in a rural area with limited high speed internet access; or
  • G8643 - practice in an area with limited available pharmacies for electronic prescribing.
  • Have the inability to electronically prescribe due to local, state, or federal law or regulation
  • Prescribe fewer than 100 prescriptions during a 6-month payment adjustment reporting period.

Requests must be submitted each year to avoid the penalty in the subsequent year. CMS has announced that office staff may submit e-prescribing hardship exemption requests on behalf of their EPs for the purpose of avoiding the 2013 e-prescribing payment adjustment.

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PQRS & eRx 2012 Incentive Programs

A new year to report PQRS and eRx measures began January 1, 2012.  If you have not yet chosen to participate in these programs in 2012 and want to earn an incentive and avoid a 2014 payment reduction, you must begin participation as soon as possible.

PQRS Incentive Program - The sooner you begin, the greater chance you will have to meet the reporting requirements for participation in this program for 2012.  The incentive for this year's submissions is 0.5% of your total Medicare allowable charges.  There are no penalties this year for not participating in this program.

eRx (e-prescribe) Program - You may earn 1% of your 2012 total Medicare allowable charges and avoid a 2% payment reduction of your 2014 Medicare payments by reporting the eRx measure code (G8553), along with a qualified denominator code (CPT code) at least 25 times for the year 2012.

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GOVERNMENT UPDATES

CMS May Give Second Chance on 2012 Penalty Adjustments
 
Physicians who were not deemed “successful electronic prescribers” in 2011 have recently received letters from CMS informing them of their status.  CMS has also notified physicians who sought a hardship exemption whether their application was approved, although there are still some notifications of the hardship exemption still pending at CMS.
 
The e-prescribe program will institute the 1% penalty to all physicians who did not successfully submit their e-prescribe claims and did not successfully obtain a hardship exemption.  In order to not receive the 1% penalty this year (2012) providers would have had to:

  • January 1, 2011June 30, 2011 – report the e-prescribe measure’s numerator code at least 10 times, via claims only (claims must be processed by CMS no later than 30 days after June 30, 2011.
  • Submit a hardship exemption request by November 8, 2011.

The e-prescribing incentive program lacks any appeal or review process for contesting the penalty.  However, CMS is encouraging eligible professionals with questions or concerns about their eRx payment adjustment and hardship requests to contact their QualityNet Help Desk as soon as possible to make their concerns about their 2012 eRx payment adjustment knownCMS is handling these concerns on a case-by-case basis to identify any unusual or extenuating circumstances that, in rare instances, may warrant further consideration of an individual case.
 
For those providers who are now receiving penalties, you may contact the agency’s
QualityNet Help Desk by phone at 1-866-288-8912 or by email at gnetsupport@sdps.org.
 
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CMS Delays Place of Service (POS) Policy to October 1, 2012

In our February Insurance Updates newsletter we reported that on February 3, 2012, CMS issued a new transmittal 2407 updating their instructions for reporting the place of service (POS) when billing claims to Medicare for services paid under the Medicare Physician Fee Schedule (MPFS).  The instructions were to be implemented on April 1, 2012. 

Transmittal 2407 established that for all services paid under the MPFS, with two exceptions, that the POS code to be used by the provider will be assigned as the:
  • same setting in which the benefiticary received the face-to-face service, or
  • in cases where there is not face-to-face service, as when a provider provides the professional component of diagnostic testing, laboratory or other services; the POS code will be the setting in which the beneficiary received the technical component (TC) of the service.
There are 2 exceptions to this face-to-face provision/rule in which the physicians always uses the POS code where the beneficiary is receiving care as a inpatient (code 21) or an outpatient (code 22) of a hospital, regardless of where the beneficiary encounters face-to-face service.

The MGMA requested CMS delay this POS policy because of concerns and questions particularly related to global billing for services within the same group practice and how the policy will apply to services performed in multiple offices of the same group practice as the actual location must, including the address and zip code, must be contained on the claim form when billing rendered services.
 

On March 29, CMS rescinded transmittal 2407 and replaced it with Transmittal 2435 to change the effective and implementation date to October 1, 2012, stating that CMS needed more time to address questions received and make necessary changes.

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The Affordable Care Act (ACA) Goes to Court
 
Days after the ACA’s second anniversary, the Supreme Court heard three days (March 26-March 28) of oral arguments concerning its constitutionality.  Twenty-six states sued the federal government primarily over the constitutionality of the minimum essential coverage provision, which requires that nearly everyone is required to have health insurance starting in 2014 or else pay a penalty, and the Act’s requirement that states will need to expand their Medicaid coverage to a larger population.
 
Four separate, but intertwined, arguments were made on the following issues.
 
The Anti-Injunction Act - The first was whether the penalty levied for not having insurance is a tax.  If it is considered a tax, under the Anti-Injunction Act (
AIA), the lawsuit could not go forward until the tax actually takes place, which would not be until 2015.  Both sides agreed that the old tax law does not apply to the ACA and should not stand in the way of the court ruling on the case.
 
Individual Mandate – Does Congress have the power under the Constitution to enact the Individual Mandate that requires nearly all individuals maintain a minimum level of health insurance coverage through their employment, as a result of retirement or government benefit by purchasing coverage on their own or with government low income subsidies?
 
Severability - If this Individual Mandate is deemed unconstitutional, then could the rest of the law remain intact or does the whole law need to be struck down?
 
Medicaid Expansion – Is the ACA’s requirement that the states expand Medicaid eligibility unduly coercive in violation of the tenth amendment which preserves states’ rights? 
 
Newspapers, web-articles, blogs, and television and radio talk shows are having a field day discussing the political and financial ramifications of the impending ACA verdict, with everyone guessing which way the court will rule. We mostly hear about the costs, and other pros and cons of keeping children covered under their parents’ health plan until they are 26, the guaranteed-issue provision, which bans insurers from refusing to offer coverage due to a preexisting medical condition, and the community rating provision, which bars insurers from charging higher premiums based on a person’s medical history.
 
What we do not hear or read much about are the other programs which are designed to cut costs and improve the quality of health care that will be in jeopardy should the court find that the remainder of the ACA law is not severable if the Individual Mandate or the Medicaid expansion provisions are ruled unconstitutional. 
 
These programs would include many initiatives and demonstrations that have already begun including:

  • Electronic health information exchanges,
  • Health IT workforce development and
  • New methods to reimburse expenses based on quality of care, operating rules and standards such as the following programs;
    • Health Benefit Exchanges
    • ACO Demonstration projects
    • Extension of the Physician Quality Reporting Initiative (PQRI)
    • CMS’ Innovation Center
    • Bonus payments to Medicare Advantage Plans
Physicians, hospitals and other healthcare organizations have spent time and money gearing up for these programs which are now considered important elements of a national healthcare transformation strategy.
 
What will happen to these programs?  Many believe that if the Supreme Court strikes down all or many of the major provisions of the ACA, new legislation will almost surely be proposed to resurrect these reforms in smaller pieces of legislation to avoid the major debates and legal challenges generated by the ACA.   But, with the federal budget realities and Congress considering how to fund the extension of the Medicare physician payment fix and avoid the consequences of Sequestration, Congress may look to defund some or all of the innovations contained in the ACA. [1]
 
The Supreme Court’s verdict, expected towards the end of June, will not only be instrumental in determining insurance coverage for all Americans but also in determining the direction of healthcare in this country.   
 
(Note:  The HITECH Medicare and Medicaid Electronic Health Records Incentive Programs (EHR Incentive Program) were authorized by the American Recovery and Reinvestment Act of 2009 and not the ACA, so they are not in jeopardy.)

 
[1] HIMSS Fact Sheet on “The Supreme Court Case on the Patient Protection and Affordable Care Act of 2010, “, March 22, 2012, http://www.himss.org/policy/d/20120326_SupremeCourtCaseACAIndividualMandateFactSheet.pdf
 

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CMS Pushes Back Enforcement of 5010 Implementation Again
 

In mid-March CMS announced it would again push back the enforcement of 5010 for another three months, until June 30.  The original date of 5010 implementation was January 1, 2012, followed by a push back to March 31, 2012. 
 
The MGMA had petitioned
CMS to again push back the date stating medical practices “are experiencing significant challenges implementing these new transactions, a situation that has led to considerable cash flow problems for physicians and their practices.” Problems were reported with both Medicare contractors and commercial plans including for those who successfully tested for 5010 but when their submissions went live, their claims were rejected.  The MGMA also asked for more help from CMS, other carriers and clearinghouses in identifying and correcting errors in Version 5010 claims.
 

CMS states the industry is making steady progress in the conversion and that the Medicare fee-for-service program is successfully processing 70% of Medicare Part A claims and 90% of Part B claims in the 5010 format and should be at a 98% processing rate for all carriers come the new enforcement date of July 1, 2012.  However, not all carriers are honoring the enforcement pushback to June 30.  Each carrier has established its own deadline.

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House Votes Down IPAB

On Thursday, March 29, the House voted to repeal the Independent Payment Advisory Board (IPAB) for Medicare and to restrict medical malpractice lawsuits limiting the amount of damages awarded to $250,000.  The bill is likely dead on arrival in the Senate, and the White House has announced it will veto the bill if it does pass the Senate.


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NEW CMS PROGRAMS
New Initiative to Bolster Primary Care Workforce

On Wednesday, March 21, CMS announced a call for applications for a new ACA initiative designed to strenghten primary care.  Under the graduate nurse education demonstration, CMS will provide hospitals working with nursing schools to train advanced practice registered nurses (APRNs) with payments of up to $200 million over four years to cover the costs of APRNs' clinical training.  Payments to the hospitals will be linked directly to the number of additional APRNs that the hospitals and their partnering entities are able to train as a result of their participation in the demonstration.

The demonstration requires that half of clinical training occur in non-hospital settings in the community, particularly those that treat minority and underserved populations. 

CMS will select up to five eligible hospitals to participate in the demonstration, which is expected to run for four years.

APRNs can be nurse practitioners, clinical nurse specialists, nurse anesthetists or nurse midwives.

For more information, visit http://www.innovation.cms.gov/initiatives/GNE/index.html
 
 
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