Pennsylvania Governor Tom Corbett has appointed members to the state’s new eHealth Partnership Authority.
The authority replaces the PA eHealth Collaborative. Its job is to oversee the development of technology-based means to facilitate the safe, confidential exchange of health information among providers.
Read the governor’s news release and see a list of the members of the authority here
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States would be permitted to require greater cost-sharing from Medicaid recipients under a new regulation proposed by the federal Centers for Medicare & Medicaid Services (CMS).
The proposed regulation, which also addresses matters involving state Children’s Health Insurance Programs (CHIP) and health insurance exchanges, would permit states to impose increased co-pays for non-emergency use of hospital emergency rooms and for non-preferred prescription drugs. The cost-sharing for non-emergency use of emergency rooms would be limited to eight dollars for Medicaid recipients with incomes between 100 percent to 150 percent of the federal poverty level but would have no limit for those whose income is beyond 150 percent of the federal poverty level.
Cost-sharing requirements of low-income patients pose a particular challenge for Pennsylvania’s safety-net hospitals. Many of their Medicaid patients cannot afford larger co-payments and often leave the hospital without paying them, thereby increasing hospitals’ bad debt.
Interested parties have until February 13 to submit comments to CMS about the proposed regulation.
Read a CMS fact sheet on the proposed regulation and find a link to the regulation itself here
, on the CMS web site.
No sooner did hospitals in western Pennsylvania breathe a sigh of relief over escaping the worst possible scenarios in the fiscal cliff crisis than they looked ahead and saw the fiscal cliff sequel: March 1, when all Medicare payments will be cut two percent unless Congress acts to prevent that reduction.
With Medicare accounting for 40 percent, 50 percent, and even 60 percent of revenue in some western Pennsylvania hospitals, providers are concerned about the impact the two percent sequester could have on their overall financial health.
Such a loss would be especially hard to bear for the area’s safety-net hospitals, which typically have fewer insured patients than other hospitals and therefore are more dependent on their Medicare revenue.
Learn more about why western Pennsylvania hospitals are concerned about March 1 in this Pittsburgh Business Times article
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The relative lack of spending cuts included in the fiscal cliff/Medicare doc fix deal passed by Congress last week could increase the pressure to reduce costs in key safety-net programs like Medicare, Medicaid, and Social Security.
Or so some policy analysts believe.
Many members of Congress supported the fiscal cliff bill only reluctantly because of it lacked the bigger spending cuts they sought, the thinking goes. Now, with another fiscal cliff deadline looming on March 1, when the previously passed sequestration law takes effect, many who compromised last week will be demanding bigger cuts in exchange for their vote.
As a result, Medicare and Medicaid, two of the federal government’s fastest-growing expenses, are expected to be targets for those in search of cuts. In addition, Medicare has proven to be among the first places many officials look in their search for savings.
Any attempt to implement additional reductions in Medicaid and Medicare, beyond those already scheduled to take effect through the Affordable Care Act and last week’s fiscal cliff bill, would be especially damaging to Pennsylvania’s private safety-net hospitals.
Read more about how last week’s budget solution is far from the end of the threat to Medicare and Medicaid in this Boston Globe article
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The Pennsylvania Department of Public Welfare has published a notice that it will increase the fees Medical Assistance pays for selected primary care services.
The pay raise, funded 100 percent by the federal government, is part of the Affordable Care Act.
For further information about the pay raise, which physicians qualify for it, and how they can receive the pay raise, see the notice here, in the Pennsylvania Bulletin.
In addition, members of the Safety-Net Association of Pennsylvania (SNAP) have received a detailed memo outlining the terms of the Medicaid primary care pay raise. Members who have not seen the memo and others who would like a copy can request it at info@paysafetynet.org
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Writing in the Pottstown Mercury, Pennsylvania Insurance Commissioner Michael Consedine has outlined why the Corbett administration chose not to develop the health insurance exchange that is one of the centerpieces of the 2010 Affordable Care Act.
Mr. Consedine’s explanation mirrors that offered last month by Pennsylvania Governor Tom Corbett: the federal government did not provide enough information and guidance to enable the state to develop its own exchange. (Go here for a summary of Governor Corbett’s op-ed piece and a direct link to that piece.)
As a result of this decision, Pennsylvania will use a health insurance exchange developed for it by the federal government.
Read Mr. Consedine’s guest column in the Pottstown Mercury here.
Slightly more than half of all U.S. hospitals will receive enhanced payments from Medicare and slightly fewer than half will see their payments reduced slightly as a result of the first reporting period for Medicare’s new value-based purchasing program.
The largest bonus will be awarded to Treasure Valley Hospital, in Utah. Each of its Medicare payments will rise 0.83 percent. The largest penalty will be assessed to Auburn Community Hospital, in Syracuse, which will see its Medicare payments reduced 0.9 percent. Two-thirds of all hospitals will see their payments rise or fall less than 0.25 percent.
Medicare’s value-based purchasing program, created by the Affordable Care Act, seeks to enhance provider accountability for the care they deliver. Seventy percent of a hospital’s score is based on its performance according to 12 basic standards of care and the rest of the score is based on the results of patient satisfaction surveys.
The program will be expanded in the coming years to encompass more standards of care. A companion program, based on Medicare readmissions within 30 days of patient discharge, is already under way and rewarding top performance and penalizing underperforming hospitals.
According to the figures released, 51 percent of Pennsylvania hospitals will receive bonuses through the value-based purchasing program and 49 percent will be penalized. Between the two programs – the value-based purchasing program and the readmissions reduction program – 20 percent of Pennsylvania hospitals will see a net increase in payments and the remaining 80 percent either broke even or will see their payments reduced.
Read more about the quality program in this Kaiser Health News report
, which also offers links to lists of the results for every hospital in the country for both the Medicare value-based purchasing and readmissions reduction programs.
The U.S. Government Accountability Office (GAO) is now reviewing audits of states’ Medicaid disproportionate share payments (Medicaid DSH) to hospitals and is raising questions about states’ compliance with federal requirements for those payments.
Based on its analysis of state Medicaid DSH audits, GAO found that states are making Medicaid DSH payments to hospitals that exceed those hospitals’ uncompensated care costs and are inaccurately calculating those hospital uncompensated care costs. The GAO also found that states are not always targeting their Medicaid DSH payments to the hospitals that provide the most uncompensated care.
States are required to submit audits and data as a condition of receiving Medicaid DSH funds from the federal government. Currently, the Centers for Medicare & Medicaid Services (CMS) is not acting on the information it receives but will begin doing so after a transition period that ends when 2014 audits are completed. In anticipation of that time, GAO is reviewing the information CMS receives for state compliance with six federal standards for Medicaid DSH payments.
This data also may eventually be used to help implement the Medicaid DSH payment reduction mandated under the Affordable Care Act.
According to the report, Pennsylvania did not provide some of the required data, so in several instances in which the document provides specific information about individual state performance, it has nothing about Pennsylvania. It does note, however, that in FY 2007, six hospitals in the state received Medicaid payments greater than their Medicaid costs.
Because Pennsylvania’s safety-net hospitals care for so many uninsured and low-income patients and receive higher Medicaid DSH payments than other hospitals, they are far more dependent on these payments than other hospitals and will need to watch this situation closely in the future.
Learn more about GAO’s examination of Medicaid DSH payments – why it is undertaking this review, what it found, and how its findings may be used in the future – in the report More Transparency of and Accountability for Supplemental Payments are Needed, which can be found here
, on GAO’s web site.
In a message to members of Pennsylvania’s congressional delegation, the Safety-Net Association of Pennsylvania (SNAP) has asked elected officials in Washington, D.C. to protect the state’s ability to levy assessments on providers to help fund the commonwealth’s Medicaid program. The proceeds from the state’s current provider assessments, SNAP notes, have made a major difference in ensuring the ability of Pennsylvania’s safety-net hospitals to continue serving their many Medicaid patients.
Read SNAP’s message to the Pennsylvania congressional delegation here
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In an op-ed piece in Sunday’s Philadelphia Inquirer, Pennsylvania Governor Tom Corbett presented the reasons he decided to let the federal government develop the state’s health insurance exchange – a key part of the Affordable Care Act – instead of having his own administration develop the exchange.
Read Governor Corbett’s op-ed piece here.