A Primedia Property
April 5, 2004 Volume 10, Number 12


ADVERTISEMENT
Formula for Success

CareCentric, a leader in software solutions for the home health industry and AnCor Healthcare Consulting have teamed up to offer MestaMed HME/IV providers customized productivity reporting tools, Operational and A/R Audits and on-site consulting to improve cash flow and reduce operating costs. For more information, call CareCentric at 800-254-9872 or visit AnCor's website at www.ancorconsulting.com.



For more industry news, features and highlights from our latest issue, please visit our Web site at http://www.homecaremag.com.

Headline News
Power Wheelchair Meeting Sends Industry Back to Square One
BALTIMORE--A victory some industry stakeholders thought they had gained turned to disappointment on March 31 at a special CMS Open Door Forum on Medicare power wheelchair policy.

Since Dec. 9, when the DMERCs issued a clarification of power wheelchair coverage, mobility leaders have vigorously opposed the policy. Some claim the clarification represented a change in reimbursement policy and restricted access to beneficiaries who need the equipment. CMS and DMERC officials, however, maintained that the clarification--issued as part of Operation Wheeler Dealer to curb fraud and abuse of the power wheelchair benefit--did not change long-standing policy and gave consistency to the four DMERCs' application of coverage criteria.

A mid-March notice from CMS retracting the DMERC article--stating the agency would continue to pay claims as it had "prior to and following" the clarification--seemed to confirm the industry stance. Some advocates, then, anticipated the Open Door session would provide further explanation and might better define the medical conditions required for power wheelchair coverage.

And though participants said they appreciated last Wednesday's discussion with CMS, many were not happy with the results.

Eight Themes
HME providers, manufacturers, representatives from consumer groups and other interested parties turned out to take part in the session, held at the agency's Baltimore headquarters with the four DMERC medical directors and CMS staff. About 50 people attended in person, while another 667 participated by phone.

The agency announced that its crackdown on power wheelchair fraud has resulted in 150 cases being referred to law enforcement, so far resulting in six convictions and eight indictments. CMS also identified eight major themes gained from the prior listening sessions that deserve attention, including:

1. Confusion over the scope of the DME benefit;
2. Criteria for medical coverage of power wheelchairs;
3. Use of power wheelchairs outside the home;
4. Appropriate beneficiary access;
5. Physicians' judgment in ordering power chairs;
6. Documentation requirements;
7. Supplier education and training; and
8. Certification of power wheelchair providers, an issue that may be considered as CMS implements provisions in the Medicare Modernization Act that require supplier accreditation. (See "CMS Prepares to Form DME Advisory Committee.")

But central discussion in the two-hour forum focused squarely on interpretation of national policy language and whether the beneficiary is "bed- or chair-confined."

"I'm sure you feel we've been a bit obtuse," said Richard Lawlor, director of CMS' Open Door Initiative. "We've spent the last couple of months distilling [all the] feedback we've gotten," he said, referring to information gained from two listening sessions on the issue held Feb. 24 and March 3.

But according to the officials at the meeting, CMS cannot give a more specific definition of its policy language. "Being more specific than the national policy, by definition, will take control away from physicians," said Timothy Hill, director of CMS' Office of Financial Management. "A more precise definition ... will make the circle [of those who qualify for a power wheelchair] smaller and smaller."

CMS staff members said that physicians "have the right to order whatever [they] want for the beneficiary," but added that the agency has the "fiduciary responsibility" to review the order to determine whether it meets Medicare coverage criteria.

As for documentation, physician notes will continue to be an important part of the process, the agency's representatives said. HME supplier documentation must corroborate physician documents and medical records, CMS staff added, explaining that although at times CMS does talk to the beneficiary directly, "from our viewpoint, the supplier accepts payment for these services" and so should ensure all documentation requirements are met.

CMS also believes the current power chair policy provides appropriate beneficiary access to such equipment. If providers have had specific instances that would prove otherwise, "we need to hear about it. We want to hear specific occurrences," said one official.

When a provider at the session said that the DMERC clarification had created access problems, Hill responded: "Evidence belies that statement. There has been a 300-percent increase in the last three years [of power wheelchair utilization]. Over any period of time, 90 to 95 percent [of those claims] are paid." If there were a beneficiary access problem, Hill continued, "those numbers wouldn't be what those numbers are."

As for the DMERC clarification, CMS' Lawlor stated that it did not represent a change in policy and added that the Dec. 9 article had been retracted only because the confusion it caused became "counterproductive" to understanding Medicare's power wheelchair coverage.

Industry Reaction
According to an April 1 report on the meeting from the Alexandria, Va.-based American Association for Homecare, the association "had hoped that the meeting would provide some clarity to the issues since CMS' statement to Congress on March 18 indicated that the [DMERC] article had been retracted."

The report continued, "AAHomecare is disappointed that CMS did not provide any information to indicate that the restriction of access to power wheelchairs has been resolved. In their words, the retraction of the clarification was simply a retraction of an article intended strictly for educational purposes of provider and Medicare beneficiaries and in no way changed the pre-existing medical coverage policy."

Having no clear answer defining coverage leaves "tremendous uncertainty" for providers, said Cara Bachenheimer, vice president of government relations for Elyria, Ohio-based Invacare. "[The meeting] was extremely disappointing. CMS is maintaining the same position as it has from day one," she said.

"I walked away with a realization that there are probably more questions than there are answers," said Rita Hostak, vice president of government relations for Sunrise Medical and president of NCART (National Coalition for Assistive and Rehab Technology). "We need some kind of clear policy that indicates what patients are covered."

Having no clear definition of coverage criteria could cause "any claim to be denied for any reason because of the lack of guidance," said Eric Sokol, president of the Washington, D.C.-based Power Mobility Coalition. "Now, coverage policy is inconsistent, unpredictable and unfair. [CMS is] totally disregarding a standard part of the CMN [asking if the beneficiary] needs the use of the chair to perform activities of daily living in his residence. The agency is reverting back to a 1985 provision [requiring power wheelchair beneficiaries to be bed- or chair-confined], but they can't define what that really means."

Bachenheimer said the root of the problem lies with CMS' strict interpretation of policy language. A short-term goal, she said, is to communicate that "bed- or chair-confined" should be construed to mean "functional nonambulation," where the user's ability to perform activities of daily living in the residence is restricted. A long-term goal, she said, is to change the K0011 national coverage policy itself.

Hostak agreed, pointing out that the process for such changes could take 18 months or more. "The industry can't take this lack of understanding for that long," she said. "We need to push for some interim clarification of the policy that ensures access."

Lawlor said CMS is planning a future Open Door Forum to be held in Washington, D.C., specifically to hear from beneficiaries impacted by the DMERC article. Because of the many comments from those who attended last week's session in person, phone participants did not have the opportunity to ask any questions.

Comments to CMS from beneficiaries and physicians could help, said Seth Johnson, AAHomecare's director of public policy, pointing out that many of the 600-plus participants on the phone were consumers and physicians.

"Just the number of people on phone speaks volumes on the impact this DMERC article is having," Johnson said. "Clearly, there is an access problem."



Houston Psychiatrist Convicted in PWC Fraud Scheme
HOUSTON--On April 1, Houston psychiatrist Lewis Gottlieb was convicted for his involvement in last year's multi-million-dollar power wheelchair scheme to defraud Medicare and Medicaid.

The psychiatrist defrauded the government of $16 million by approving hundreds of motorized wheelchairs for beneficiaries in return for kickbacks from wheelchair suppliers. He pled guilty to executing a health care fraud scheme and receiving kickback payments between October 2001 and May 2003. Gottlieb was indicted in September 2003.

The court ordered that $1.6 million held in a bank account in Gottlieb's name be forfeited to the United States. He now faces a maximum penalty of 10 years in federal prison for the health care fraud conviction, five years for the illegal kickback conviction and another five years for the conspiracy conviction. Sentencing is set for June 24.

"Every taxpayer is victimized when government programs are abused," said Michael Shelby, United States attorney for the Southern District of Texas. "[This] conviction is another step toward ensuring that our health care programs will be free from corruption and fraud."

During last week's hearing, Gottlieb admitted that in October 2001 he was approached by an individual who offered to pay him a kickback of $85 if he would sign a document approving a Medicare beneficiary to receive a motorized wheelchair. He also admitted that, after a cursory examination, he signed a CMN and received the kickback.

Thereafter, numerous DME owners and individuals with the same request approached him. He admitted to signing hundreds of CMNs in exchange for $200 per certificate. The majority of beneficiaries Gottlieb approved did not qualify under Medicare and Medicaid guidelines to receive a power wheelchair.

An extensive review of claims the DME companies submitted revealed that they fraudulently billed Medicare and Medicaid for providing power wheelchairs when, in fact, they provided a less expensive scooter--or nothing at all.

In addition to kickbacks, Gottlieb required beneficiaries brought into his office by the DME owners or recruiters to sign a form indicating they were in need of psychiatric services and authorizing him to bill Medicare on their behalf. If the beneficiary refused to sign the psychiatric form, Gottlieb would not sign the form authorizing the motorized wheelchair. He then submitted these fraudulent claims to Medicare.

The case against Gottlieb was the result of a joint investigation by the FBI, the Department of Health and Human Services and the Medicaid Fraud Control Unit of the Office of the Texas Attorney General. After the fraud case was uncovered, the government initiated Operation Wheeler Dealer, a massive crackdown on fraud and abuse of the Medicare power wheelchair benefit.

Since then, the initiative has resulted in six convictions for fraud and recouped $5 million for Medicare, CMS announced last week at its special Open Door Forum on the Medicare power wheelchair benefit (see lead story). The agency is still individually reviewing all K0011 claims in Harris County, where Houston is located.



CMS Prepares to Form DME Advisory Committee
BALTIMORE--The wheels may be starting to turn toward competitive bidding. At a March 24 Home Health, Hospice and DME Open Door Forum, CMS announced it is beginning preparations for the formation of a DME advisory committee to advise the agency on quality standards, financial standards, data collection strategies and, ultimately, the logistics behind the implementation of competitive bidding as required under the Medicare Modernization Act (MMA).

"We're just getting started now," a CMS official told HomeCare Monday. "The committee is going to give us advice, and it has to be there at the start of the process. I would hope we would have internal decision-making done ... by late summer. [But that is] pure speculation."

MMA creates an Advisory and Oversight Committee to advise the Secretary of Health and Human Services on development of quality standards for DME providers who do business with Medicare. One year after the standards are developed, the agency must then choose one or more accrediting bodies to apply those standards. MMA also requires that providers be accredited to be reimbursed by Medicare--and to qualify to participate in competitive bidding for Medicare business. Under MMA, competitive bidding will begin in the nation's top 10 metropolitan statistical areas (MSAs) in 2007 and phase to the top 80 MSAs in 2009, after which HHS has the authority to expand DME competitive bidding nationwide.

Beyond quality standards, the official said, the committee will advise CMS to ensure that the agency has "efficient management services" in place, and understands how the interaction among manufacturers, physicians and DME suppliers works. The agency needs to know "how the system works" to make the implementation of competitive bidding as smooth a possible, the official said.

CMS' first tasks will be issuing a formal notice about its intent to form the committee, determining what qualifications would make someone a good candidate for the committee and developing a formal process through which people can submit applications. "We're working on that as quickly as we can," the official said.

Check future issues of HomeCare Monday for information about participating on CMS' DME advisory committee.



To revisit this news any time during the week, go to http://www.homecaremonday.com.

Manufacturer News
Invacare Gets FDA Clearance for Sleep Products
ELYRIA, Ohio--Invacare has received FDA clearance to market its new Polaris EX CPAP device and heated humidifier. According to the company, the sleep therapy products are designed with technology that enhances consumer comfort, leading to increased patient compliance.

The CPAP features SoftX, an exhalation unloading feature to allow obstructive-sleep-apnea patients to breathe more easily on exhalation. The humidifier, which provides humidification during CPAP therapy, attaches to the front of the Polaris EX CPAP.

Breg Signs Two-Year Contract with Kaiser Permanente
HUNTERVILLE, N.C.--Orthopedic and rehab products manufacturer Breg, a division of Orthofix International, will supply Kaiser Permanente patients with lower-extremity bracing products through an agreement with Broadlane Inc. Kaiser insures 8.2 million people and owns 30 hospitals and 431 medical office buildings.

The contract will run through May 2006 and covers various customized off-the-shelf braces, including those for anterior, posterior cruciate ligament and osteoarthritis knee applications. Breg has offices in Vista, Calif., and Mexicali, Mexico. Broadlane, based in San Francisco, offers supply cost-management services to health care providers.

In Brief
CMS announced March 26 that Medicare Advantage (previously Medicare+Choice) capitation rates for 2005 are expected to increase 6.6 percent in accordance with new rate formulas outlined in MMA. The announcement also includes CMS' preliminary estimates of the national growth rate used for determining the national per capita Medicare Advantage growth percentage. This figure is an estimate and could change before the final 2005 capitation rates for all counties are announced on May 10. Since MMA was enacted in December, CMS has approved six new Medicare Advantage organizations and 14 service area expansions. Currently, there are 10 new plans and 10 service-area expansions pending CMS approval. To view the rate notice, visit the CMS Web site at www.cms.hhs.gov/healthplans/rates/.

A recent report from HHS' Office of Inspector General found that Medicare reimbursements for enteral nutrition formulas are excessive. Medicare's reimbursement for Category I formulas exceeded median contract prices available from a national wholesaler, a group purchasing organization and a supplier who negotiated directly with manufacturers by 70 to 115 percent, the report said. The OIG recommended that CMS consider using its "inherent reasonableness" authority to reduce the Medicare reimbursement amount for Category I formulas--and CMS agreed with the recommendation, OIG said.

Pharmaceutical manufacturers must report pricing data for some outpatient drugs administered to Medicare beneficiaries beginning on April 30, CMS said April 1. The interim final rule, to be published in tomorrow's Federal Register, gives implementation guidelines for a provision in MMA requiring manufacturers to calculate the average sales prices for the Part B drugs on a quarterly basis.

A Web site giving seniors insight into the government's new Medicare prescription discount drug card was launched April 1 and will feature medication price comparisons beginning April 29. The site will eventually allow seniors to choose from 48 cards for various drug categories, including 27 available nationally to all eligible Medicare beneficiaries. Information about the prescription drug benefit discount card is available in the "Prescription Drug and Other Assistance Programs" section at www.medicare.gov.

A General Accounting Office report found that a 2002 mailing by the Social Security Administration to 16.4 million seniors increased enrollment in Medicare's programs for low-income beneficiaries by 74,000. The report, titled Medicare Savings Programs: Results of Social Security Administration's Outreach to Low-Income Beneficiaries, may add credibility as the federal government plans a massive mailing and media plan educating seniors about the new Medicare prescription drug discount card.

Coming Up This Month
The Weeks Group, Melbourne, Fla., will present two CEO Workshops this month on April 8-9 and 22-23. For information, visit www.weeksgroup.com or call (888) 430-6919.

The Pacific Association for Medical Equipment Services (PAMES) will hold its annual convention April 13-14 in Seattle. For more information, visit www.pames.org or call (503) 253-9691.

Dynamic Seminars will host two teleconferences this month: "Customer Service Strategies That Will Separate You from the Competition" on April 13, and "Selling Strategies"on April 30. For more information, visit www.dynamicseminars.com or call (954) 435-8182.

The Florida Association of Medical Equipment Services (FAMES), in conjunction with AAHomecare, will hold a Medicare audit seminar April 17 in Fort Lauderdale, Fla. For more information, visit www.aahomecare.org or call (703) 535-1887.

The Visiting Nurse Associations of America (VNA) will hold its annual convention April 21-23 in New Orleans. For more information, visit www.vnaa.org or call (617) 737-3200.


ADVERTISEMENT

Visit this week's sponsor at www.ancorconsulting.com.


About this Newsletter

You are subscribed to this newsletter as <*email*>

To stop receiving HomeCare Monday, click here: Unsubscribe

To subscribe to this newsletter, click here: Subscribe

To visit HomeCare's website click here

For information on advertising in this newsletter, please contact Robyn Epstein repstein@primediabusiness.com

 

To get this newsletter in a different format (Text, AOL or HTML), or to change your e-mail address, please visit your profile page to change your delivery preferences.

For questions concerning delivery of this newsletter, please contact our Customer Service Department at:
US Toll Free: (866) 505-7173
International: (402) 505-7173
or custserv@newsletter.primediabusiness.com

Primedia Business Magazines & Media
9800 Metcalf Avenue
Overland Park, KS 66212

Copyright 2004, PRIMEDIA. All rights reserved. This article is protected by United States copyright and other intellectual property laws and may not be reproduced, rewritten, distributed, re-disseminated, transmitted, displayed, published or broadcast, directly or indirectly, in any medium without the prior written permission of Primedia Business Magazines & Media Inc.