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RAC Update GAHA: 2014 Health Care Law Update May 16, 2014

RAC Update GAHA: 2014 Health Care Law Update May 16, 2014. Tracy M. Field, M.S., J.D. Womble Carlyle Sandridge & Rice, LLP 271 17 th Street, NW – Suite 2400, Atlanta, GA 30363 (404) 962-7539. MEDICARE AUDITS Now What?. Perspective: By challenging denials, CMS changed the rules!

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RAC Update GAHA: 2014 Health Care Law Update May 16, 2014

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  1. RAC UpdateGAHA: 2014 Health Care Law UpdateMay 16, 2014 • Tracy M. Field, M.S., J.D. • Womble Carlyle Sandridge & Rice, LLP • 271 17th Street, NW – Suite 2400, Atlanta, GA 30363 • (404) 962-7539

  2. MEDICARE AUDITSNow What? • Perspective: • By challenging denials, CMS changed the rules! • Compliance challenge: How assess accuracy? • Business reasons for rebilling Part B • 2 year backlog – and growing!

  3. ALJ BACKLOGOMHA February 2014 Forum Office of Medicare Hearings and Appeals (OMHA) Forum: February 12, 2014 • Backlog of 500,000 cases – and counting! • Moratorium on docketing new appeals until workload addressed per ALJ • Hearings being scheduled

  4. ALJ BACKLOGOMHA February 2014 Forum • Backlog • Budget increase: 18+% (after sequester) • Statistical sampling? • OMHA statistician • Appropriate for fact-specific cases • Mediation/Alternative Dispute Resolution • New regulations

  5. ALJ BACKLOGOMHA February 2014 Forum • No longer need to submit medical records? • Group cases – but individually file! • Electronic filing? • Send files via tracking methods, and don’t expect an acknowledgment! • Miami pilot • 2 year development from award

  6. ALJ BACKLOGOMHA February 2014 Forum • Backlog • Increase in Escalation to DAB-MAC • NO Hearing at DAB-MAC • Access to federal court sooner – but… • OMHA stated testimony makes difference - yet • OMHA suggested may not want to request hearing?

  7. ALJ BACKLOGOMHA February 2014 Forum • Legal Considerations • Medicare Modernization Act (MMA) and BIPA deadlines not being met • For medical necessity cases, what standard of review applies? • Confusion on effective dates for local coverage determinations (LCDs) • Jimmo Case: Important for rehab, other uses?

  8. ALJ BACKLOGOMHA February 2014 Forum • Compliance Considerations • Part A/B Claims: 97% of appeals • Redetermination reversal rate to fully favorable: • 30% per OMHA

  9. ALJ BACKLOGOMHA February 2014 Forum For OMHA Outcomes of Cases Decided at ALJ • 37% Fully Favorable – 4% Partially Favorable • 30% Unfavorable • 1% Remand • 27% Dismissed Impact on Compliance activities….

  10. RAC REPORT(March) 2014 For FYE 2012: • Increasing RAC Activity • Medicaid RACs • Data warehouse • Validation audits, education • “Maximize transparency” • Hearing Participation

  11. RAC REPORT(March) 2014 For FYE 2012: • Collected $2.3 Billion in overpayments… • New initiatives to prevent provider appeals? • The 2 Midnight Rule • Subregulatory Guidance?

  12. MAC REVIEWS • RAC Denial •  • Redetermination (MAC) •  • Qualified Independent Contractor (QIC) •  • Administrative Law Judge (ALJ) •  • Medicare Appeals Council (MAC)/Departmental Appeals Board (DAB) •  • Federal Court

  13. INITIAL REVIEWSProbe Audits • MAC Audits: January 2014 • MAC prepayment reviews: “probe and educate” • Recovery Audits: • Delayed until November 2014 – but the probe audits continue….

  14. INITIAL REVIEWSProbe Audits • Presumptions that Hospital Stays Less than 2 Midnights are Not Medically Necessary • Presumption does not mean wrong!! • Legal challenges to denials • Strategy to avoid audits • Some opted for no one-day stays • Rebill under Part B?

  15. MEDICARE APPEALSOther Considerations • IPPS Proposed Rule: Payment for Short Stay Admissions: • Payment under OPPS or IPPS? • AHA Litigation: • Challenges the 2 Midnight Rule; Part A/B Rebilling time limitations and physician certification of orders as payment condition

  16. REFERENCES www.hhs.gov/omha • Per OMHA: Updates after 15th of each month on adjudication timelines, processes • OMHA Adjudication Manual Pending

  17. QUESTIONS? Tracy M. Field, M.S., J.D. tfield@wscr.com (404) 962-7539 Womble Carlyle Sandridge & Rice, LLP 271 17th Street, N.W. Suite 2400 Atlanta, Georgia 30363

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