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| January 26, 2009 | Volume 15, Number 3 |
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ADVERTISEMENT In today’s economy, ROI is more important than ever. Escalating costs of doing business, capped programs, and insurance companies taking longer to reimburse…all lead to smaller margins. Businesses have to change the way they operate. Trust MedAct to help you manage your DME business and collect your money faster. Learn how MedAct supports you in revenue cycle management, accreditation readiness and know where you are making money. Call 1-800-326-0314 today or visit www.dynamicenergy.com Table of Contents - Memo Opens Window to Shut Out Competitive Bidding - AAHomecare Calls on Daschle, Congress to Rescind Bidding Rule - Bill Would Exempt Pharmacists from Accreditation - CMS Fashions Second PAOC - Some New Bills a Boon to Business, Others Not So Much - Your Post-Cap O2 Questions Asked and Answered - ACU-Serve Marks 15 Years; FAA Approves Invacare POC - Frizzera Temporary Head of CMS; OIG Shows Big ROI - On the HME Calendar For more industry news, features and highlights from our latest issue, please visit our Web site at www.homecaremag.com. Headline News Memo Opens Window to Shut Out Competitive Bidding WASHINGTON--Just hours after becoming the nation’s 44th president, Barack Obama gave the HME industry more time--maybe--to work on derailing DMEPOS competitive bidding. On Tuesday afternoon, Obama Chief of Staff Rahm Emanuel issued a memo directing federal agencies to hold off on all pending regulations until the new administration has had the opportunity to study them. For regulations that have already been published in the Federal Register but have not yet taken effect--including the interim final rule on competitive bidding, published Jan. 16--the administration will consider extending the effective date for 60 days. The rule was to take effect Feb. 15, but under the memo, that date could be extended to April 16. The memo does not automatically suspend or retract the interim final rule, which includes instructions for a rebid of Round One in 2009 (see HomeCare Monday Special Alert, Jan. 15). Neither does it extend the comment period for the rule, which ends March 17. It also does not rescind rules already in effect, such as the post-cap payment rules for oxygen issued in November. Still, a possible extension in the effective date of the new competitive bidding rule was encouraging news, industry manufacturers and providers said. “With regard to the recent CMS interim final rule on competitive bidding, this provides us an opportunity to work with the new administration to review this rushed regulation that had no public or industry input,” said Cara Bachenheimer, senior vice president of government relations for Elyria, Ohio-based Invacare Corp. CMS’ first attempt at competitive bidding was halted July 15, two weeks after implementation, by the Medicare Improvements for Patients and Providers Act. The law mandated a number of changes to the bidding project and delayed its implementation after providers in Round One detailed numerous problems with CMS’ bid submission process and review of financial documentation. Of 6,500 bids, CMS offered contracts to only 329 providers in the first 10 bidding areas. Resulting reimbursements were cut by an average 26 percent. But Bachenheimer said CMS addressed few of the issues surrounding the troubled bidding program in its new rule. “Our goal with regard to the agency moving forward under MIPAA’s directive is to work more collaboratively with the new administration to: 1) educate them about the fundamental flaws of the bidding program; and 2) have them suspend the rule while the agency, in conjunction with affected parties, can reshape the rule to address those fundamental flaws,” she said. Seth Johnson, vice president of government relations for Pride Mobility Products, Exeter, Pa., said extension of the rule’s effective date “provides a new opportunity to get the new administration to retract the whole interim final rule.” Toward that end, numerous industry organizations are urging providers to contact their legislators to press for their support in halting the new bidding rule. This time, they said, they feel like they have a lot more leverage thanks to supporters in Congress and the ravages of a devastated economy. “It’s not as though we haven’t learned [from the last time],” said Georgie Blackburn, vice president of government relations for Blackburn’s Pharmacy in Tarantum, Pa., noting that there now are people with muscle in Washington “who want to hear what we have to say. People who worked with us so well and so efficiently last year are still there.” And many of them are concerned about the reappearance of the bidding program, according to Johnson, noting committee leaders on both sides of the aisle were “alarmed” when CMS released the rule in the last hours of the Bush administration. “I think we have a leg up from where we were a year ago,” he said. “I do think the new administration will want to make sure they are paying appropriately for items and services, but I do not think they are wedded to moving forward with this competitive bidding program.” Johnson noted another message that might be particularly important to this administration: Competitive bidding does not create jobs. “When you look at the message that he ran on in his campaign and the state of the economy today, President Obama continues to state that it is his administration’s priority to create jobs,” Johnson pointed out. “And he … believes there needs to be an increase in home health care. Clearly, when you look at competitive bidding, it is counter to the administration’s priority.” “I can’t imagine that anyone in D.C. can embrace a program that would put 90 percent of providers [in the affected areas] out of business,” added Blackburn. “Last time, 501 oxygen providers in [the Miami bidding area] were reduced to 44,” said Rob Brant, president of the Accredited Medical Equipment Providers of America. “Four hundred power wheelchair providers were reduced to 25. Do we really want to do that?” The few changes to the interim final rule and its implications for beneficiary access and small business point up the importance of fighting it, Brant said. “People thought because it was delayed, that was the end of it. But it’s not. It is not magically going to go away. We have to end it.” To read the text of the interim final rule, click here.
What is your most challenging HME business issue for 2009? To vote in HomeCare's monthly Web poll, visit www.homecaremag.com.
AAHomecare Calls on Daschle, Congress to Rescind Bidding Rule ARLINGTON, Va.--On Friday, the American Association for Homecare sent a letter to Health and Human Services Secretary-Designate Tom Daschle and chairmen of key congressional committees urging them to review and rescind CMS’ new interim final rule on competitive bidding. “We view the bidding program as a bureaucratic, anti-competitive price-setting system that will have the unintended consequences of reducing quality of, and access to, care for patients. Defying the spirit of transparent and open government, this bidding program was rushed into implementation in the 11th hour of the Bush administration without regard for the negative impacts it will have on seniors and home care patients," wrote AAHomecare President Tyler Wilson. But getting that message across will take some effort, observers said, especially since Congress continues to hear from bureaucrats who point to competitive bidding as a way to save the government a substantial amount of money. Congressional Quarterly reported that on Wednesday, Alice Rivlin, former head of the Congressional Budget Office and the White House Office of Management and Budget, urged the Senate Budget Committee to curb entitlement spending growth by using tools such competitive bidding for HME. Rivlin said that “with all due respect it was ‘ridiculous’ of lawmakers to halt competitive bidding,” according to the report. That prompted Wilson to respond that “it would have been
ridiculous to continue that bidding program, which was a disaster for
patients and providers alike, which is why Congress wisely reformed and
delayed the program. Moreover,” he continued, “the home medical
equipment sector more than paid for the full savings that the flawed
bidding program was projected to have saved through the 9.5 percent cut
that took effect earlier this month. And the durable medical equipment
sector is growing at just 0.75 percent per year despite growing
demand.”
Bill Would Exempt Pharmacists from Accreditation WASHINGTON--Calling Medicare’s accreditation requirement “unnecessary and unfair,” Reps. Marion Berry, D-Ark., and Jerry Moran, R-Kan., introduced a bill on Wednesday that would exempt pharmacists. The bill comes just days before CMS’ advised Jan. 31 accreditation sign-up deadline. Applying by that date, the agency has said, will ensure providers get through the process in time to meet the agency’s mandatory Sept. 30 deadline, by which all DMEPOS providers must be accredited in order to bill Medicare. CMS has exempted some “eligible professionals,” including physicians, from the requirement. In addition, “other persons,” including orthotists, prosthetists, opticians and audiologists, are also exempt. The proposed legislation would add pharmacists to the list. In announcing the bill (H.R. 616), Berry pointed out that community pharmacists “are the only licensed medical professionals that must meet new CMS accreditation requirements as suppliers of DMEPOS.” “In rural areas … community pharmacists are often the only medical professionals available who can supply this vital equipment to patients,” he said. “The current law threatens the ability of patients to get the supplies and care they must have to stay healthy. This bill will ensure Medicare patients have access to the supplies they need while also helping community pharmacies keep their doors open.” Pharmacy groups, including the American Pharmacists Association, Food Marketing Institute, National Association of Chain Drug Stores, National Community Pharmacists Association and the National Alliance of State Pharmacy Associations, applauded the bill. “Not only are there significant costs associated with the accreditation process that can create huge financial barriers for pharmacies and pharmacists that are already state-licensed, more importantly, the process poses a threat to patients’ access to DME supplies and counseling from their pharmacist,” according to a release from the groups. But accreditation stakeholders were not as enthusiastic about the bill. "It's mixed good and bad from this perspective,” said Carmen Catizone, executive director of the National Association of Boards of Pharmacy in Mount Prospect, Ill., which accredits pharmacies. “We didn’t really believe this rule was needed for pharmacists or pharmacies to begin with. We thought it was a bit of overkill because they are already licensed. “Now that we are accrediting,” he continued, “we have seen some benefits from accreditation, and we have been able to detect a bit of fraud that wouldn’t have been detected if accreditation hadn’t been in place.” He said while some independent pharmacies have complained that the accreditation price tag is too high, others have said the process has helped them do business better. Indeed, he said, accreditation--and NABP has accredited about 10,000 pharmacies, “every major chain except Wal-mart,” Catizone said--has helped raise pharmacies to higher standards. “Hopefully, the right thing to do is to keep accreditation in place and if it is not working, then get rid of it in a few years,” he said. Sandra Canally, president of accrediting body The Compliance Team, Spring House, Pa., said she does not support exempting pharmacies--or anyone else. “To exempt these folks is not a good decision,” said Canally, noting her company has already accredited hundreds of pharmacies. “The whole point of the Medicare Modernization Act [which mandated accreditation] was not only to prevent fraud and abuse but to elevate standards of care. How can you raise standards of care when one provider can get away from any standards and the other is held accountable to the nth degree?” Mary Ellen Conway, president of Capital Healthcare Group, Bethesda, Md., not only questioned the wisdom of exempting pharmacists but also the timing of the bill. “I think it is a shame at this point to give [pharmacists] false hope,” Conway said. “Even if this passes, it won’t be anytime soon.” If pharmacists wait to see what happens, she noted, that could put them in a risky position. “This is another potential distraction that people look for, and it may not come to fruition,” she said. “And then on Nov. 1 they are in trouble because all their Oct. 1 claims have been denied [since they are not accredited].” Catizone agreed that pharmacies could be practicing risky business if they wait on the outcome of H.R. 616. “We know people are going to sit on the fence and say, ‘We’ll wait and see what happens,’” he said, but “once they miss that [Jan. 31] application deadline, accrediting agencies won’t be able to get to them because they will have all those other pharmacies.” Even if pharmacies that wait to apply find an accreditor to take them on, they--or any other providers who wait--could run into trouble, Canally said. While her company does not, some accreditors require providers to be ready for an inspection at the time they submit their applications. And by Sept. 30, every provider who wants to continue billing Medicare must ensure their businesses are up to CMS standards, which can take time--and that will be in short supply for those who wait, she continued. If an accreditor finds any problems on the accreditation survey, for example, that could mean further delay. “God forbid they don’t make it through the first time and we give them a corrective action plan and 60 days or so to complete it,” Canally said. “If they wait until the final hour, they better be bloody perfect because otherwise they are going to lose their billing number.” For a list of CMS’ 10 approved accreditation organizations, click here. CMS Fashions Second PAOC BALTIMORE--Along with its interim final rule for DMEPOS competitive bidding, CMS also announced the members of its new Program Advisory and Oversight Committee. Officials said the revised 17-member committee “will provide advice to the [Department of Health and Human Services] Secretary on a number of issues related to the implementation of the program and will assist the Secretary [in focusing on] key operational issues … including quality standards, accreditation, and beneficiary issues.” CMS abruptly ended the term of the first PAOC members in 2008 (see HomeCare Monday, Oct. 13, 2008). The agency said new committee members include representatives of beneficiaries and consumers, physicians and other practitioners, providers, industry organizations and financial experts. The new PAOC members are:
While there are strong HME advocates among its members, whether the new PAOC will pack any punch this time around remains uncertain. Previous committee members have been vocal in their criticism of CMS, saying although the committee's name indicates they had oversight powers, they did not, and while they were to function as well in an advisory capacity, CMS seldom took their advice. Rob Brant, president of the Accredited Medical Equipment Providers of America--whose members went to court over bid disqualification in Round One--also said he was disappointed there is not more representation of small providers on the new PAOC. “We’re the ones that have to do the bids, crunch the numbers, provide the service," said Brant, who owns City Medical Services in North Miami Beach, Fla. Some New Bills a Boon to Business, Others Not So Much WASHINGTON--Against the backdrop of inauguration hoopla and confirmation hearings for President Obama’s cabinet nominees, the 111th Congress has been busy with a flurry of new bills that could affect HME business. On the larger health care front, Senate Finance Committee Chairman Max Baucus, D-Mont., has unveiled the committee’s plan for the nation’s economic stimulus bill, including a number of wide-ranging health care provisions. In the House, a portion of the massive bill, which also includes funds for health information technology, is expected to reach the floor this week. A reauthorization of the State Children’s Health Insurance Program--which threatened oxygen and power wheelchairs in Congress’ last wrangle over expansion of the program--is also making its way through the legislative morass, this time without any HME provisions (see HomeCare Monday, Aug. 6, 2007). But there are plenty of other legislative proposals for providers to keep up with, some considered a boon to home care, others not so much. --On Jan. 21, just days before CMS’ advised Jan. 31 sign-up deadline for accreditation, Reps. Marion Berry, D-Ark., and Jerry Moran, R-Kan., introduced a bill to exempt pharmacists from the Medicare accreditation requirement. While the agency has exempted some “eligible professionals," pharmacists are not on the list. Commenting on the bill (H.R. 616), Berry said the hefty accreditation requirements are a particular burden for rural pharmacists and the beneficiaries who rely on them. For more, see “Bill Would Exempt Pharmacists from Accreditation” in this issue. --On Jan. 16, the Medicare Home Infusion Therapy Coverage Act of 2009 was reintroduced concurrently in the Senate (S. 254) and the House (H.R. 574). The bill would close a gap in current coverage where the medicines used in infusions to treat serious diseases are covered, but not the services or equipment needed to deliver the home therapy. The bill calls for coverage of infusion-related services, supplies and equipment under Medicare Part B. Coverage of the drugs used in infusions would remain under Part D. Sens. Blanche Lincoln, D-Ark., and Olympia Snowe, R-Maine, and Reps. Eliot Engel, D-N.Y., and Timothy Murphy, R-Pa., put the proposed legislation back in play. According to the lawmakers, the lack of coverage forces patients to remain in hospitals or nursing homes longer than necessary to receive their treatments, compromising their health and costing the health care system more than it should. “Unnecessary institutional treatment simply makes no sense when patients can be treated in the comfort of their home, and at a lower cost to Medicare,” said Snowe. “Home infusion therapy is covered by private insurers because they see the tremendous value, and Medicare beneficiaries deserve no less,” added Lincoln. For the bill text, click here. For information on the National Home Infusion Association's Legislative Hill Day March 5, see www.nhia.org. --With providers still reeling from a final rule issued Dec. 29 that requires a $50,000 surety bond to participate in Medicare, Rep. Cliff Stearns, R- Fla., introduced a bill (H.R. 203) on Jan. 6 that would increase the bond amount to $500,000. The bill has been referred to the House Ways and Means and Energy and Commerce committees. While Washington-watchers say it is unlikely the proposal will see any action, “this position is another finger pointed at DME suppliers,” said Wayne Stanfield, president and CEO of the National Association of Independent Medical Equipment Suppliers. Last year, Sen. Mel Martinez, R-Fla., and five other senators also introduced a $500,000 surety bond bill. But after an influx of calls and emails from industry groups saying the measure would cause undue hardships on small providers, the senators quickly said they would reconsider (see HomeCare Monday, Feb. 25, 2008). For the text of the Stearns bill, called the Medicare Fraud Prevention Act of 2009, click here. --On Jan. 14, several House and Senate Democrats jointly introduced a bill called the Retooling the Health Care Workforce for an Aging America Act (S. 245). The legislation would address the growing shortage of physicians, nurses and other health care professionals trained in geriatric medicine. Among other things, the bill would expand geriatrics training for home health aides, other direct care workers and family caregivers who provide the lion's share of daily, hands-on care for older Americans. The bill is modeled after legislation that Kohl, chair of the Senate Special Committee on Aging, introduced late last year. Sens. Blanche Lincoln, D-Ark., and Bob Casey, D-Pa., and Rep. Jan Schakowsky, D-Ill., joined in introducing the bill, which has been referred to the Senate Committee on Health, Education, Labor, and Pensions. For the text of the bill, click here. --Meanwhile, the National Alliance for Caregiving and Caring.com have called on Congress for a bailout, asking that 1 percent of the economic stimulus package be targeted toward supporting family caregivers. While the still-deteriorating economy has hit all Americans, it has hit this group harder, the organizations said. “Family caregivers are struggling to pay their own bills and, increasingly, those of their loved ones as well; expenses continue to rise and the hours of care they provide each day continue to go uncompensated.” The average caregiver now spends $5,534 a year out-of-pocket for caregiving expenses, a statement from the organizations said. “Like Wall Street, the auto industry and homeowners, family caregivers need help from Congress to make it through 2009.” Although a number of bills have been introduced in recent years that would provide tax incentives to help offset caregiving expenses, none have passed, so the organizations are calling directly on President Obama for results. According to Gail Gibson Hunt, president and CEO of the NAC, the president “cared for his mother and grandmother and knows how difficult it is to provide caregiving on top of other family responsibilities.” Your Post-Cap O2 Questions Asked and Answered AMARILLO, Texas--With all the confusion surrounding CMS’ new post-cap oxygen payment rules, it’s time for some answers. In a special series for HomeCare Monday, Lisa K. Smith, Esq., an attorney with the Health Care Group at Brown & Fortunato, P.C., a law firm based in Amarillo, Texas, responds to several of home medical equipment providers’ most common questions about the new rules. Question: When billing for oxygen contents after the 36-month
cap period, can the supplier bill for a month’s content if it did not
make a delivery in that month? In other words, can a supplier deliver
oxygen contents for multiple months at one time and then bill for
contents for each of those months?
Question: What are the logistics for providing replacement
equipment after the end of the five-year useful life period? What
documentation is required? Will the patient need to see the physician,
and is a new CMN required?
Question: If the patient chooses not to obtain replacement
equipment at the end of the five-year useful life, does the supplier
have the option of picking up the oxygen equipment? Would a DC order or
AMA be required?
Lisa K. Smith, who is Board Certified in Health Law by the Texas Board of Legal Specialization, represents HME companies, pharmacies, hospitals and other health care providers throughout the United States. She can be contacted at lsmith@bf-law.com. HME Company Newswire ACU-Serve Marks 15 Years; FAA Approves Invacare POC CUYAHOGA FALLS, Ohio--ACU-Serve Corp., an HME insurance billing and collections service provider, is celebrating its 15th anniversary in HME billing service. Founded in 1994 by partners Angie Barone, Tim Barone and Jim Knight, the company serves more than 70 clients in 23 states. ALC Opens New Factory MILWAUKEE--ALC Inc. has opened a new manufacturing facility in Jefferson, Wis. The company has also launched a redesigned generation of its Action Lift Chair line. Caplugs Moves into China BUFFALO, N.Y.--In December, Caplugs acquired an injection molding operation in the PuDong district of Shanghai, China. The location will stock and manufacture the company's standard product line and offer full tool making capabilities for custom part requirements. FAA Approves Invacare POC ELYRIA, Ohio--The Federal Aviation Administration has approved Invacare Corp.'s XPO2 portable concentrator, introduced in May 2008, for airline travel. The company said it will now approach individual airlines for their approvals. Southwest Airlines has already approved the system. The XPO2 weighs 6 pounds and incorporates Sensi-Pulse technology, a five-setting pulse dose oxygen delivery system that keeps patients saturated during all activities of daily living. SeQual Partners with AOTI SAN DIEGO--SeQual Technologies and wound care manufacturer AOTI Ltd., based in Tamarac, Fla., and Galway, Ireland, have partnered to offer SeQual's Integra and Eclipse 2 oxygen systems in Europe. According to SeQual CEO Ron Richard, the partnership "brings together two companies whose products benefit patients suffering from COPD as well as those from chronic wounds, such as diabetic, venous and pressure ulcers ... By combining our sales, service and clinical resources we feel confident in offering the European market better overall support." In the coming months, SeQual Technologies Europe will relocate its customer and service support functions to Galway. In Brief Frizzera Temporary Head of CMS; OIG Shows Big ROI BALTIMORE--Charlene Frizzera, CMS COO, will act as administrator of the agency until the Obama administration puts forth its own nominee. Frizzera replaces Kerry N. Weems, who has been CMS acting administrator since 2007. In other transition news, President Obama has tapped Campaign for Tobacco-Free Kids head William Corr as deputy secretary for the Department of Health and Human Services. Corr was chief counsel to HHS Secretary-Designate Tom Daschle when the former South Dakota senator was Senate minority leader. If both are confirmed, they will lead the administration's effort to reform the nation's nearly $2.3 trillion health care system.
OIG Says Medicare, Medicaid Work Shows Big ROI
Coming Up On the HME Calendar The National Mobility Equipment Dealers Association (NMEDA) will hold its Annual Conference Feb. 4-6 in Daytona Beach, Fla. For information, call 813/264-2697 or visit www.nmeda.org. VGM Education has announced its Traveling Events schedule for the spring, including Billing Boot Camp on Feb. 6 in Birmingham, Ala.; Wound Care & Bariatric Academy Feb. 10-11 in Orlando, Fla.; and Billing and Reimbursement Road Show Feb. 19 in Sarasota, Fla. For the complete list of 2009 events, call 866/227-8171 or visit www.vgmeducation.com. "Homecare on Capitol Hill Day," sponsored by AAHomecare, is set for Wednesday, Feb. 11, in Washington. The one-day fly-in, which will focus on the home care agenda for the new Congress--including oxygen issues and what can be done to prevent re-implementation of competitive bidding--will begin with issue briefings at 8 a.m., followed by congressional meetings. For information, visit www.aahomecare.org. The Texas Association for Home Care Legislative Conference is scheduled Feb. 11 in Austin, Texas. Call 512/338-9293 for information. Pride Mobility Products will begin its 2009 Pride University Seminar Tour Feb. 12 in Charlotte, N.C. The 29-city tour will continue through September with a final stop in Wilkes-Barre, Pa., near the company's headquarters in Exeter. Pride has conducted the tour since 2000, presenting CEUs via courses approved by the University of Pittsburgh’s School of Health & Rehabilitation Sciences. This year, sessions will include PMD documentation, technical service, retail mobility, advanced electronics and seating and positioning, along with a new business solutions course for company owners. Specialists such as Christine Maurer, a seating and mobility clinical therapist at the Shepherd Center in Atlanta, will also be featured in the series. For a complete schedule and course list, visit www.prideprovider.com or call 800/800-8586. The MED Group will hold its Respiratory Conference Feb. 16-19 in San Antonio, Texas. For information, call 800/825-5633 or visit www.medgroup.com. The Virginia Association of Durable Medical Equipment Companies (VADMEC) will hold its Winter Meeting and Legislative Conference in Richmond, Va., Feb. 18-19. For information, call 919/387-1221 or visit www.vadmec.org. The Illinois Home Care Council will hold its Annual Conference and Expo Feb. 25-27 in Oak Brook, Ill. For information, call 217/753-4422 or visit www.ilhomecare.org. To revisit this news any time during the week, go to www.homecaremonday.com.
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