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The Reingruber Report

 

 

CMS ANNOUNCES SNF PPS FINAL RULE FOR FY2012

 

CMS: $523 CY 2012 ENROLLMENT APPLICATION FEE FOR INSTITUTIONAL PROVIDERS

 

MEDICARE PROVIDERS MUST BEGIN TO REVALIDATE ENROLLMENT BY MARCH 2013

 

SUMMARY OF CMS MDS 3.0 TRAINING HELD IN ST.LOUIS IN MARCH 2012

 

DADS: NEW PAYMENT RATES FOR TEXAS HOSPICES EFFECTIVE OCTOBER 1, 2011

 

DADS: NEW INFORMATION LETTERS ISSUED

 

OIG REPORT ON MEDICARE HOSPICES THAT FOCUS ON NURSING FACILITY RESIDENTS



The Reingruber Report is a compilation of articles with brief technical information and materials regarding the long term care industry. This report is not intended to offer specific advice to any one provider and any application of the matters discussed herein is dependent upon specific facts and circumstances of individual situation. No final conclusions on the discussed topics should be drawn without further review and consultation.

 

 

 

 

 

 
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Please use the link below to access the Summary of CMS MDS 3.0 Training March 7-9, 2012 St. Louis.

 

If you have any questions, please do not hesitate to contact our office.

 

Thank you.

 

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 http://www.reingruber.com/downloads/March 2012 CMS Training Summary Final.pdf

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 $523 Calendar Year (CY) 2012 Enrollment Application Fee for Institutional Providers

Wednesday, December 7, 2011

 

Institutional providers (i.e., all providers except physicians, non-physicians practitioners, physician group practices and non-physician practitioner group practices) must submit an application fee or hardship exception when initially enrolling, revalidating their enrollment; or adding a new Medicare practice location. The CY 2012 fee of $523.00 is required with any Medicare enrollment application submitted on or after Sunday, January 1, 2012 and on or before Monday, December 31, 2012.

 

For more information about how the fee was calculated, see the Federal Register Notice. See MLN  Article SE1130 to learn how to pay the fee for Medicare enrollment actions.

 

 

 

 

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From: Skilled Nursing Facility (SNF) [mailto:SNF-L@LIST.NIH.GOV] On Behalf Of CMS CMSProviderResource
Sent: Friday, July 29, 2011 5:12 PM
To: SNF-L@LIST.NIH.GOV
Subject: CMS ANNOUNCES MORE ACCURATE FY 2012 PAYMENTS FOR MEDICARE SKILLED NURSING FACILITIES

 

CMS ANNOUNCES MORE ACCURATE FY 2012 PAYMENTS FOR MEDICARE SKILLED NURSING FACILITIES
CASE-MIX INDEXES RECALIBRATED TO BETTER ALIGN PAYMENTS WITH COSTS

Also requires a new assessment to capture changes in therapy services, and allocation of group therapy time to ensure payment accuracy

The Centers for Medicare & Medicaid Services (CMS) today announced a final rule reducing Medicare skilled nursing facility (SNF) Prospective Payment System (PPS) payments in FY 2012 by $3.87 billion, or 11.1 percent lower than payments for FY 2011. The FY 2012 rates correct for an unintended spike in payment levels and better align Medicare payments with costs.

   “CMS is committed to providing high quality care to those in skilled nursing facilities and to pay those facilities properly for that care,” said CMS Administrator Donald M. Berwick, M.D.  “The adjustments to the payment rates for next year reflect that policy.”

CMS is now recalibrating the case-mix indexes (CMIs) for FY 2012 to restore overall payments to their intended levels on a prospective basis. The SNF PPS uses a resource classification system known as Resource Utilization Groups Version 4 (RUG-IV), which assigns a patient to a RUG group to determine a daily payment rate.  Each RUG group consists of CMIs that reflects a patient’s severity of illness and the services that a patient requires in the skilled nursing facility (SNF).   In transitioning from the previous classification system to the new RUG-IV, CMS adjusted the CMIs for FY 2011 based on forecasted utilization under this new classification system to establish parity in overall payments.  SNFs have been paid under RUG-IV since Oct. 1, 2010.

CMS found that the parity adjustment made in FY 2011, which was intended to ensure that the new RUG-IV system would not change overall spending levels from the prior year, instead resulted in a significant increase in Medicare expenditures during FY 2011. This increase in spending was primarily due to shifts in the utilization of therapy modes under the new classification system differing significantly from the projections on which the original parity adjustment was based.

“Additional data analyzed by CMS since publication of the proposed rule confirmed the extent of the overpayments that have occurred since implementation of the RUG-IV system,” said Jonathan Blum, deputy administrator and director of the Center for Medicare. “We are also making several improvements to our payment system to strengthen its integrity.”

The FY 2012 recalibration of the CMIs will result in a reduction to skilled nursing facility payments of $4.47 billion or 12.6 percent.  However, this reduction would be partially offset by the FY 2012 update to Medicare payments to skilled nursing facilities.  The update — an increase of 1.7 percent or $600 million for FY 2012 — reflects a 2.7 percent increase in the prices of a “market basket” of goods and services reduced by a 1.0 percent multi-factor productivity (MFP) adjustment mandated by the Affordable Care Act.   The combined MFP-adjusted market basket increase and the FY 2012 recalibration will yield a net reduction of $3.87 billion, or 11.1 percent.

For FY 2012, the recalibration will reflect the intent of the new RUG-IV system to pay SNF providers more accurately based on the service needs of Medicare beneficiaries in their care.  The adjustment was determined using claims and assessment data from the first eight months of FY 2011. It will ensure that payments more accurately reflect the resources required to provide care for the range of SNF patients, including those requiring more medically complex care.

It is important to note that this recalibration removes an unintended spike in payments that occurred in FY 2011 rather than decreasing an otherwise appropriate payment amount.  Even with the recalibration, the FY 2012 payment rates will be 3.4 percent higher than the rates established for FY 2010, the period immediately preceding the unintended spike in payment levels.

 Along with recalibrating and updating the SNF PPS payment rates for FY 2012, this final rule makes a number of additional revisions aimed at enhancing SNF PPS accuracy and integrity.  The rule modifies the patient assessment windows and grace days to minimize duplication and overlap in observation periods between assessments.  The final rule also:

 Clarifies circumstances when SNFs must report breaks of three or more days of therapy.

More information on this SNF PPS final rule and other health care related news can be found at www.healthcare.gov, a new web portal made available by the U.S. Department of Health and Human Services.

 

For further information, see www.cms.hhs.gov/center/snf.asp. A copy of the final rule is available on the Federal Register website at:  http://www.ofr.gov/OFRUpload/OFRData/2011-19544_PI.pdf

 

 

 

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From: 18 existing FFS provider listservs [ALL_FFS_PROVIDERS@LIST.NIH.GOV] On Behalf Of CMS CMSProviderResource [CMSProviderResource@CMS.HHS.GOV]
Sent: Wednesday, August 10, 2011 3:48 PM
To: ALL_FFS_PROVIDERS@LIST.NIH.GOV
Subject: Medicare Providers Must Begin to Revalidate Enrollment By March 2013


All providers and suppliers who enrolled in the Medicare program prior to Friday, March 25, 2011, will be required to revalidate their enrollment under new risk screening criteria required by the Affordable Care Act (section 6401a).  (Providers/suppliers who enrolled on or after Friday, March 25, 2011 have already been subject to this screening, and need not revalidate at this time.)

 

In the continued effort to reduce fraud, waste, and abuse, CMS implemented new screening criteria to the Medicare provider/supplier enrollment process beginning in March 2011.  Newly-enrolling and revalidating providers and suppliers are placed in one of three screening categories – limited, moderate, or high – each representing the level of risk to the Medicare program for the particular category of provider/supplier, and determining the degree of screening to be performed by the Medicare Administrative Contractor (MAC) processing the enrollment application.

 

Between now and March 2013, MACs will be sending notices to individual providers/suppliers; please begin the revalidation process as soon as you hear from your MAC.  Upon receipt of the revalidation request, providers and suppliers have 60 days from the date of the letter to submit complete enrollment forms.  Failure to submit the enrollment forms as requested may result in the deactivation of your Medicare billing privileges.  The easiest and quickest way to revalidate your enrollment information is by using Internet-based PECOS (Provider Enrollment, Chain, and Ownership System), at https://pecos.CMS.hhs.gov.

 

Section 6401a of the Affordable Care Act requires institutional providers and suppliers to pay an application fee when enrolling or revalidating (“institutional provider” includes any provider or supplier that submits a paper Medicare enrollment application using the CMS-855A; CMS-855B, not including physician and non-physician practitioner organizations; CMS-855S; or associated Internet-based PECOS enrollment applications); these fees may be paid via www.Pay.gov.

 

In order to reduce the burden on the provider, CMS is working to develop innovative technologies and streamlined enrollment processes – including Internet-based PECOS.  Updates will continue to be shared with the provider community as these efforts progress.

 

For more information about provider revalidation, review the Medicare Learning Network’s Special Edition Article #SE1126, titled “Further Details on the Revalidation of Provider Enrollment Information.”

 

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DADS has issued the following Information Letter(s):

 

 

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New Texas Medicaid Payment Rates for Hospices Effective October 1, 2011

 

 November 18, 2011

To: Medicaid Hospice Providers

Subject: Information Letter No. 11-144

Payment Rates Effective October 1, 2011

Dear Provider,

The Texas Health and Human Services Commission (HHSC) approved rate changes for the Medicaid Hospice program Federal Fiscal Year 2012 based on information provided by the Centers for Medicare and Medicaid Services (CMS). The new rates, which are effective retroactive to October 1, 2011, can be accessed through the HHSC Rate Analysis website at the following address: http://www.hhsc.state.tx.us/rad/long-term-svcs/hospice/index.shtml

Once you access this website, scroll down to the “Payment Rate Information” heading and click on the link entitled “2012 Payment Rates to Current”. The county where the hospice recipient received services is the basis for determining the appropriate rate. The new rates are listed by county. In addition, CMS has indicated the hospice cap amount of $24,527.69, for the cap year ending October 31, 2011.

Claims Submission

Providers should continue to bill the Texas Medicaid and Healthcare Partnership (TMHP) using their normal billing process. Providers are encouraged to bill electronically. Since the electronic payment system has been updated with the new rates, a retroactive adjustment will occur allowing the new rate for claims beginning October 1, 2011; therefore, no additional action is required by individual providers.

Medicaid Hospice forms and instructions, information letters, and policy clarifications may be accessed at http://www.dads.state.tx.us/providers/Hospice/index.cfm. If you have questions regarding billing and payments for hospice services, please call TMHP at 1-800-626-4117 and select option 1.

Sincerely,

[signature on file]

Pam McDonald

Director, HHSC Rate Analysis for Long-Term Services and Supports

 

 

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OIG: Medicare Hospices that focus on Nursing Facility Residents

Medicare spending on hospice care for nursing facility residents has grown nearly 70 percent since 2005. Additionally, hundreds of hospices had a high percentage of their beneficiaries residing in nursing facilities, and most of these hospices were for-profit. Compared to hospices nationwide, these high-percentage hospices received more Medicare payments and served beneficiaries who spent more time in care. High percentage hospices typically enrolled beneficiaries whose diagnoses required less complex care and who already lived in nursing facilities before they elected hospice care.

Medicare currently pays hospices the same rate for care provided in nursing facilities as it does for care provided in other settings, such as private homes. Unlike private homes, nursing facilities are staffed with professional caregivers and are often paid by third party payers, such as Medicaid. These facilities are required to provide personal care services, which are similar to hospice aide services that are paid for under the hospice benefit.

Some hospices may be seeking beneficiaries with particular characteristics, including those with conditions associated with longer but less complex care. Such beneficiaries are often found in nursing facilities. By serving these beneficiaries for longer periods, the hospices receive more Medicare payments, which can contribute to larger profits.

We recommend that CMS (1) monitor hospices that depend heavily on nursing facility residents and (2) modify the payment system for hospice care in nursing facilities. CMS concurred with both of our recommendations. It also agreed that the current payment structure may provide incentives for hospices to seek out beneficiaries in nursing facilities, who often receive longer but less complex care.

To view the full report:

 http://oig.hhs.gov/oei/reports/oei-02-10-00070.pdf

 

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