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Reimbursement The Impact of Health Care Reform and Federal Issues Christine S. Zambricki DNAP, CRNA, FAAN October 20, 2013 Maryland Association of Nurse.

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Presentation on theme: "Reimbursement The Impact of Health Care Reform and Federal Issues Christine S. Zambricki DNAP, CRNA, FAAN October 20, 2013 Maryland Association of Nurse."— Presentation transcript:

1 Reimbursement The Impact of Health Care Reform and Federal Issues Christine S. Zambricki DNAP, CRNA, FAAN October 20, 2013 Maryland Association of Nurse Anesthetists

2 Our Agenda Context Economic, health policy and political contexts Federal health programs CRNA Issues Legislative and regulatory issues Affordable Care Act Advocacy programs

3 Federal policy environment Economic Health Political

4 Economic Factors Shaping Health Going UpGoing Down Elderly as a share of the population Workers to retiree ratio Per-capita health spending, more slowly U.S. health compared with industrialized world U.S. debt, >$16.7 TU.S. deficits annually Economic growth Public coveragePrivate coverage

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7 Is It About the Money?

8 Health spending in the U.S. $2.7 T in 2011, up 3.9% in 2011, about 18% of U.S. economy, average $8,680 per person Three years in a row of stable growth Economic downturn – Demand – Supply – Technology

9 Political Forces shaping the 113 th Congress 58.7% of vote eligible citizens, 10% latino, 13% black, 19% young voters 65.9M to 60.9M votes, 51-47%, Continuing divided government House Senate 114 th Congress?

10 Political Forces shaping the 113 th Congress Considerable change beneath the surface – 12 new Senators of 100, 67 new Representatives of 435. Most of Congress is new since 2006 – New leaders in some key health positions – Freshman class

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12 IOM: The Future of Nursing The Need to Transform Practice – Key Message #1: Nurses should practice to the full extent of their education and training. The Need to Transform Education – Key Message #2: Nurses should achieve higher levels of education and training through improved education system that promotes seamless academic progression.

13 IOM: The Future of Nursing The Need to Transform Leadership – Key Message #3: Nurses should be full partners, with physicians and other health professionals, in redesigning health care The Need for Better Data on the Health Care Workforce – Key Message #4: Effective workforce planning and policy making require better data collection and an improved information infrastructure

14 Health Programs and CRNA Practice

15 Medicare & CRNAs Part A: Hospital insurance – Conditions of participation Physician supervision – Pass-through program Part B: Physician services – Anesthesia payment Medical Direction Medical Supervision – Teaching rules – Reimbursement for other services Parts C & D: Managed care, prescription drugs

16 Part A for CRNAs Conditions of participation & of coverage – Anesthesia services – ASC surgical services Reasonable cost pass-through – Certain qualifying rural and critical access hospitals – <800 cases or less – CRNA services as a hospital service, no Part B

17 Supervision It is a Medicare requirement, a portion of a regulation, 42 CFR §482.52(a)(4) Anesthesia must be administered only by … (4) A certified registered nurse anesthetist (CRNA), as defined in (b) of this chapter, who, unless exempted in accordance with paragraph (c)of this section, is under the supervision of the operating practitioner or of an anesthesiologist who is immediately available if needed ….

18 Historical Context Part of the Medicare conditions for participation 1997: Proposed to be repealed 1/2001: Repealed in a final rule 2/2001: Suspended 11/2001: Finalized as an opt-out process 11/2001 to today: 17 states have opted out 2013: No rule regarding supervision but good CMS precedents

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20 Part B for CRNAs Anesthesia payment – Medical direction – Pain care – Teaching rules Payment for other services

21 Fee-for-service (Base + time) x ($CF) = anesthesia fee (Relative value) x ($CF) = physician fee Pays for a thing Does not necessarily pay for – Quality – The right thing – Care coordination – Optimal efficiency

22 Medicare anesthesia payment (Base + time units) x (anesthesia CF) Rules determined by: – Statutes enacted by Congress – Regulations adopted by Medicare agency (CMS) – Sub-regulatory policy adopted by Medicare – Medicare Administrative Contractor that operates Medicare in each state, regionally

23 Most common anesthesia services QZ, CRNA non-medically directed (NOT AA!) QX, CRNA medically directed by an anesthesiologist QK, anesthesiologist medically directing 2, 3 or 4 concurrent CRNA cases AA, personally performed by an anesthesiologist

24 TEFRA medical direction rules Anesthesiologist performs all seven tasks in each of up to four concurrent cases provided by a CRNA Fee split 50/50 between CRNA and medically directing anesthesiologist A payment model not a standard of care Encourages higher-cost anesthesia delivery without demonstrated quality improvement

25 What are the TEFRA rules? 1.Performs a pre-anesthetic examination and evaluation; 2.Prescribes the anesthesia plan; 3.Personally participates in the most demanding procedures in the anesthesia plan, including induction and emergence; 4.Ensures that any procedures in the anesthesia plan that he or she does not perform are performed by a qualified anesthetist; 5.Monitors the course of anesthesia administration at frequent intervals; 6.Remains physically present and available for immediate diagnosis and treatment of emergencies; and 7.Provides indicated-post-anesthesia care. MCM Ch 12 Sec 50G

26 Medical Direction Undermined Anesthesiology 2012; 116:

27 Of the anesthetics you personally administer, how often is an anesthesiologist involved in the following activities? AANA 2011 member survey, unpublished.

28 Anesthesiologist Supervision Often Lapses Anesthesiology 2012; 116:

29 Part B Medical Direction vs Part A Supervision Medical DirectionPart A Supervision By an anesthesiologistBy operating practitioner, or by an anesthesiologist who is immediately available if needed Seven services required in order to claim medical direction reimbursement (50% of a fee, up to 4 concurrent cases (TEFRA rules) Required as a condition of participation for your hospital, or a condition of coverage in your CAH or ASC Opt-out does not applyOpt-out does apply; 17 states have opted-out

30 Part B Medical Supervision MDA supervises 5 or more CRNAs MDA bills 3 base units + 1 base unit CRNA bills QX (50%) MAY NOT BE USED FOR FAILED MEDICAL DIRECTION Failed medical direction: CRNA bills QZ and MDA bills “0” per CMS

31 AANA action on CRNA reimbursement Anesthesia payment panels Summit on Anesthesia Reimbursement Member education on Business of Anesthesia Building relationships with key payer leaders Comment on changes impacting CRNA reimbursement Development and support of State Reimbursement Director

32 PQRS Reporting program that uses incentive payments and payment adjustments to promote reporting of quality info by eligible professionals (EPs) CRNAs are EPs Report on 50% of Medicare patients by the end of 2013, get a.5% incentive payment In 2015, not reporting results in a 1.5% "adjustment" (meaning reduction). If not reporting, 1.5% cut in your Medicare payments in 2015, which will go to 2% in CMS proposed rules: 9 measures, registries only

33 PQRS CMS cannot accept data codes for reprocessing on a claim that has already been submitted. Providers have until Dec services to add the appropriate code to the claim. There are also registry options. Additional options for avoiding the negative adjustment: reporting one data code for one Medicare patient for one measure in CY13 would help avoid the ding in CY15. If they want a bump in CY15 they have to report 50% plus one. CMS calculate administrative claims for incentives – deadline October 15. (Requires an Individual Access to CMS (IACs) Account). It can take more than a day to calculate.

34 PQRS Payment adjustment information: Initiatives-Patient-Assessment- Instruments/PQRS/Payment-Adjustment- Information.html. Initiatives-Patient-Assessment- Instruments/PQRS/Payment-Adjustment- Information.html tip sheet: Initiatives-Patient-Assessment- Instruments/PQRS/Downloads/2013MLNSE13__ AvoidingPQRSPaymentAdjustment_ pdf Initiatives-Patient-Assessment- Instruments/PQRS/Downloads/2013MLNSE13__ AvoidingPQRSPaymentAdjustment_ pdf

35 Provider Nondiscrimination Part of the Affordable Care Act (Sec. 1206) Promotes consumer choice and cost savings, by prohibiting health plans from discriminating against qualified healthcare providers by licensure Takes effect 2014, subject to notice-and- comment rulemaking Attempts to amend to weaken or strike it

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37 ASA on nondiscrimination “(T)he Senate bill also includes gratuitous so-called “non-discrimination" language (Sec. 2706). The intentionally vague language, inserted by supporters of paraprofessionals, seeks to prevent health insurers from "discriminating" against non-physician providers in deciding who may participate in their plans. Its practical implications are to open the doors to various disruptive tactics within the insurance marketplace by paraprofessionals, putting Federal law on a collision course with each state’s scope of practice law.”

38 Non-discrimination The Obama Administration will not issue regulations interpreting the AANA-backed provider nondiscrimination provision of the Affordable Care Act before it takes effect Jan. 1, 2014 FAQ document issued by Medicare, IRS-Treasury and the Department of Labor Non-grandfathered group health plans and health insurance issuers offering group or individual coverage are expected to implement the provision starting on January 1, 2014, using a good faith, reasonable interpretation of the law.

39 Non-discrimination Rep. Andy Harris (R-MD), the only anesthesiologist in Congress, introduced HR 2817, on July 24 with the backing of the American Society of Anesthesiologists (ASA). “We are deeply concerned that for certain covered services in a number of states, this new part of the Public Health Service Act will be interpreted to provide that all health professional groups be considered as if their education, skills and training were equal even if their state-based medical and healthcare professional licenses or certifications are very different…. This ACA [Affordable Care Act] provision disrupts over a century and a half of dynamic state-based licensure and certification, interjecting the federal government into interpreting the limits of scope of practice and procedure.” The letter was co-signed by medical societies representing dermatologists, family practice physicians, otolaryngologists, ophthalmologists, OB/GYNs and plastic surgeons. Rep. Harris’ legislation was referred to the House Energy and Commerce Committee where he does not serve, and has no cosponsors and no Senate companion bill at this date.

40 AANA supports direct reimbursement to CRNAs providing pain management services

41 CRNA direct reimbursement for chronic pain management Medicare has paid CRNAs directly for chronic pain management services The AMA and the ASA oppose CRNAs providing chronic pain management Two Medicare contractors stopped paying CRNAs directly for chronic pain management services These two contractors required that a physician bill for the CRNA chronic pain management services. This is called “incident-to” billing.

42 Bookmark & Share >> More... >> More...

43 Physician Resistance American Medical Association Consistently issued resolutions, petitions, and position papers opposing scope of practice AMA Citizens Petition to HCFA (2000) AMA Scope of Practice Partnership (2006) AMA Resolution “Independent Practice of Medicine by Nurse Practitioners” (2006) AMA Scope of Practice Data Series (2009) Health Care Truth and Transparency Act (2011) CMS and CSA sued the State of California (2010)

44 Political Reality OppositionInstitute of Medicine Report

45 Continued challenges: Imaging, MACs

46 What Medicare Ruled on Pain Care

47 What Does the Pain Care Rule Say Medicare will cover services within CRNA scope of practice in a state “The primary responsibility for establishing the scope of services CRNAs are sufficiently trained and, thus, should be authorized to furnish, resides with the states.”

48 Where They Stood For CRNA Pain Care AARP American Hospital Association and select State Hospital Associations National Rural Health Association Nursing Associations Opposed to CRNA Pain Care AMA “ASA Rebukes CMS Rule for Jeopardizing Patient Safety and Quality Health Care” Source: Comments at and Alerts/ASA-Rebukes-CMS-Rule-for-Jeopardizing-Patient-Safety-and- Quality-Health-Care.aspxwww.regulations.gov

49 Noridian - LCDs Epidural Steroid Injections: database/details/lcd- details.aspx?LCDId=33835&ContrId=246 Facet Joint Injections, Medial Branch Blocks, and Facet Joint Radiofrequency Neurotomy: database/details/lcd- details.aspx?LCDId=33841&ContrId=246

50 IPRCC HHS charged IPRCC to create a comprehensive population health level strategy for pain prevention, treatment, management, and research. Structure includes 5 Working Panels – Professional Education and Training Margaret Faut- Callahan, PhD, CRNA, FAAN – Public Health: Care, Prevention, and Disparities Jackie Rowles, CRNA, MS

51 IPRCC Structure

52 VHA Nursing Handbook Update APRNs as LIPs – Cathy Rick, CNO IOM “Future of Nursing” Consistent with current anesthesia handbook Dear Colleague Letter: The Honorable Eric Shinseki. Secretary of Veterans Affairs ASA Campaign Over 40 nursing groups co-signed letter to Shinseki this week Met with Interim CNO – Christine Engstrom

53 ASA message and response ASA said CRNA LIPs would be “required” to function without physician oversight. In response, the AANA-AVANA letter stated that “the truth is that neither the VHA draft Nursing Handbook nor the term ‘Licensed Independent Practitioner’ suggest that CRNAs and other APRNs would be ‘required’ to function without physician involvement should the VHA designate APRNs as LIP.” ASA said the Nursing Handbook would result in “effectively eliminating physician-nurse team- based coordinated care. In response, the AANA-AVANA letter stated, “The ASA statement is false. While the VA Anesthesia Handbook supports care provided in teams, it does not require anesthesiologist supervision of CRNAs. Consistent with the Anesthesia Handbook, several VHAs are staffed solely by CRNAs working without anesthesiologist supervision…. Overall care of the patient remains a collaborative effort among physicians, APRNs, nurses and other healthcare professionals, as it should.” ASA cited its long-discredited “Silber” study as justification for concluding “anesthesia care is improved with the involvement of a physician anesthesiologist in a team.” In response, the AANA-AVANA letter stated that “This ASA statement misrepresents the findings of a claims- data based study, the results of which have not been replicated and have been disregarded by Medicare.”

54 Anesthesia Payment Teaching Rules What Medicare pays for services when education of anesthesia students or residents is involved When it’s 1:1, payment is as though qualified provider (CRNA, anesthesiologist, or medically directed CRNA) is delivering the service 74 FR 61738, /25/2009.

55 Teaching Rules: 1 to 2 CRNA uses QZ modifier, present during pre- and post-anesthesia care and during concurrent cases Anesthesiologist uses AA + GC modifier, present during critical or key portions, immediately available

56 Teaching rules: Medically directed Medically directed CRNA gets 50% of a fee in one SRNA case, and discontinuous time in each of two concurrent SRNA cases

57 Teaching Rules inequity issue: MD with resident vs MD with SRNA

58 Medicaid and CHIP Federal-state program for indigent pregnant women or women with children, and for indigent seniors in post-acute nursing home settings Covered services vary by state Affordable Care Act expansion of Medicaid

59 Private coverage Insurance Self-administered plans By type: – Fee for service – Preferred provider organization – Health maintenance organization – High deductible health plan

60 Comparing average 13-unit anesthesia fee

61 Reimbursement of CRNA services PastPresent and Future Fee-for-serviceFFS, ACOs, bundled global & capitated systems Periodic SGR cutsWill they fix SGR? 50/50 public/privateTrend toward more public as share of retirees grows Small share MedicaidMedicaid expansion

62 The Affordable Care Act of 2010 Expansion of coverage – Medicaid expansion, subsidies in exchanges Insurance reforms – State-based exchanges for marketing coverage – Nondiscrimination, consumer protections Delivery system reforms – Accountable Care Organizations – Innovation Center – Independent Payment Advisory Board Financing

63 Workforce Provisions Title 8 Reauthorization Graduate Nursing Education National Healthcare Workforce Commission

64 Title 8 Funding, $MM

65 Graduate Nursing Education Part of ACA, funded through GME Four-year, up to $200MM total to expand education of APRNs in five hospitals – Duke (Durham) – Memorial-Hermann Texas Medical Center (Houston) – Penn (Philadelphia) – Rush (Chicago) – Scottsdale Healthcare Medical Center (Scottsdale) Evaluation

66 Coverage Provisions Medicaid Expansion – Increase eligibility for Medicaid – Additional federal funding for new participants Exchanges – A regulated means to market health plans

67 Supreme Health Reform Decision Is requiring a person to purchase health coverage or pay a penalty constitutional? Is expanding Medicaid, a state-run program with some federal funds, constitutional?

68 Medicaid expansion in the ACA For beneficiaries up to age 65 up to 138% FPL (FPL = $15,415 for an individual in 2012) Starts in 2014, feds pay 100% of expansion, declining to 90% by 2020 and years thereafter Supreme Court: Unconstitutional to take away a state’s Medicaid for refusing to expand it Mississippi is rejecting Medicaid expansion (Gov. Bryant, 11/7/12) Source:

69 Exchanges (Marketplaces) and Essential Health Benefits Exchanges are for marketing health coverage in a state – State-based exchange (As of Oct. 1 working well) – Federally facilitated exchange (disaster so far) – Combination ( jury is out) Essential Health Benefits link to benchmarks of small business plans in a state

70 Delivery System Reforms Accountable Care Organizations Center for Medicare & Medicaid Innovation Independent Payment Advisory Board (IPAB)

71 Implementation Timeline 2011: Various pilot projects and advisory panels launch, Title 8 reauthorization, beginning of Medicaid expansion implementation 2012: Graduate Nursing Education 2012: Supremes decide constitutionality 2013: Finalization of plans 2014: Provider nondiscrimination, state based exchanges take effect

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73 Budget Sequestration Sequestration is $1.2 trillion in automatic spending cuts due to go into effect over the next 10 years $85 billion 3/1/12 – Half by dollar value from national security – Medicare, -2% – Other health and research, -8% – National security, -9% – Exempts Medicaid, Veterans benefits, most student aid Agency flexibility in apportionment?

74 Pew: Increase, decrease or same? Aid to world’s needy Aid to needy in U.S Health care Medicare Education Social Security Veterans benefits53386 Pew Research Center, 2/13-18/ deadline-looms-little-support-for-cutting-most-programs/

75 AANA supports permanent repeal and replacement of the SGR formula with a payment system that accurately reflects the cost of providing anesthesia care.

76 Briefing: SGR The Sustainable Growth Rate (SGR) is a Medicare Part B payment formula for CRNA and physician services SGR is based on the economy Reduced payment has been threatened since 2002 Every year Congress defers rather than repeals the SGR cuts 2012 CRNA payment will decrease by 26.2% in MARCH

77 What’s a 26.2% Medicare Cut? If a CRNA performs unit 100% Medicare cases, that yields $236,700 in fees Minus 30% = $165,690 Difference of -$71,010 if 26.2% cuts hit 3/1/2012 Congress continues struggling with paying for relief from 26.2% Medicare Part B payment cuts scheduled for March 1. The AANA and CRNAs have weighed-in and continue to, but the outlook for long-term relief is dim and short-term relief appears more likely. Approximately $365.00/week

78 What’s new with SGR Energy and Commerce plan to replace SGR with a quality- based plan that would update payments by.5 – 1 % each year. Update Medicare payment rates by 0.5 percent until 2019, until performance-based payment methods: the Quality Update Incentive Program and the Alternative Payment Model, which could increase doctors’ payments by as much as 1 percent. The CBO scored the SGR reform bill $175.5 billion over 10 years. Freezing SGR payments will cost $139.9 billion. $36 billion comes from the cost of replacing that system with a quality-based payment plan.

79 SGR Key Talking Points 4 years ago Medicare said anesthesia services were undervalued CRNAs do not control service volume CRNAs provide access to care in rural America CRNAs are 25% more cost effective Quality of CRNA care is equal All barriers to the use of CRNAs should be eliminated

80 What Can AANA & CRNAs Do? Know the issues Participate in AANA advocacy programs – Mid-Year Assembly – CRNA-PAC – FPDs & Key Contacts – CRNAdvocacy Alerts – Initiatives in reimbursement – SRS – State level GRC, PAC and BOD

81 SRS Program

82 SRS Background AANA Anesthesia and Payment Policy Coordinating Panel (APPCP) recommendation to the AANA BOD AANA BOD approved September 2012 Goal: reimbursement advocacy in each state The SRD –repository of state reimbursement information –coordinator of state advocacy work.

83 State Reimbursement Specialist program At the direction of the Board A focal point in each state for CRNA reimbursement knowledge, and for advocacy of CRNA reimbursement interests Development of key relationships – Private payors – three largest health plans in state – Public payors – Medicaid, exchanges, MAC – Other interests – Hospital, rural health and health plan associations Coordinated by your AANA FGA team

84 Objectives Monitor trends Serve as a resource Work with state association to establish key relationships

85 SRS Position Requirements Keen interest in reimbursement Willing to enhance knowledge Represent with professionalism and enthusiasm Willing to disclose conflicts of interest

86 Job Description –Coordinate and improve payment processes and reimbursement in your state –Accomplish this task by working with others based on state association’s needs and resources

87 Job Description Establish key contacts with Top three health plans in your state Exchange Boards Medical Director for Medicare Administrative Contractor Medicaid Director Insurance Commissioner State Hospital Association State Ambulatory Surgery Center Association State Rural Health Association

88 Job Description –Serve as a repository of information by monitoring state reimbursement activities: Medicare Local Coverage Determinations (LCDs) Medicaid payment policy Commercial insurance reimbursement Accountable care organizations (ACOs) State exchanges

89 Job Description –Assist with state reimbursement issues as a first responder –Communication with state leaders –Enter state reimbursement information into special SharePoint site –Alert the AANA to any emerging issues

90 PALS Volunteers who get others to volunteer or contribute Volunteers - contributors Constituents: Everyone who voted for the candidate Voters who voted for the wrong candidate Registered voters who don’t vote Voting age not registered to vote

91 Separate fund, 100% from CRNAs’ voluntary contributions, not dues Ensures CRNAs have access to DC, where our issues are decided Not partisan Always working for the profession of nurse anesthesia What is CRNA-PAC? CRNA-PAC’s Mission Statement: Advancing the profession of nurse anesthesia through federal political advocacy.

92 Stats that Make Us Proud Largest federal nursing PAC in the country Top ten PAC nationwide for healthcare professionals $1.1 million impact on the 2012 national elections with 94% of CRNA-PAC supported candidates elected to office.

93 2013 CRNA-PAC Highlights $1.75 million goal for “CRNA-PAC Loves the 80’s” Party at Mid-Year Assembly “Remember the RatPAC” Party at Annual Meeting Refreshed Care to Be Counted website, Student-specific engagement New Incentive Club levels

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95 Does This Work? A case study Problem: Present threat to CRNA pain practice Strategy: Research. Grassroots. Local & national allies. Advocacy. Response. Comments. Outcome: Medicare rule covering all CRNA services within state scope of practice published 12/2012, effective 1/2013

96 Thank You from Your AANA FGA Frank Purcell, Senior Director Federal Goverment Affairs Christine Zambricki, Senior Director Federal Affairs Strategies Kate Fry, Associate Director Political Affairs Romy Gelb-Zimmer, Associate Director Federal Regulatory and Payment Policy Randi Gold, Associate Director Federal Regulatory and Payment Policy Ralph Kohl, Associate Director Federal Government Affairs Candida Richardson, Administrator AANA Division of Federal Government Affairs 25 Massachusetts Ave., Suite 550 Washington, DC // //


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