1999 REGULATORY BLUEPRINT FOR ACTION

INTRODUCTION

The Regulatory Blueprint for Action identifies important regulatory issues for home care, hospice, and home medical equipment providers. It provides a summary of each issue, including background information, recommendations, and rationale for the recommendations. This document provides a guide to the home care industry's position on the issues addressed. The National Association for Home Care's (NAHC) 1998 Regulatory Blueprint for Action has been reviewed by the Regulatory Affairs Subcommittee and the Forum of State Association's Regulatory Affairs Advisory Committee and approved by the Board of Directors.

In order to identify the regulatory issues that are of importance to home care, hospice and home medical equipment providers throughout the country, NAHC engages in a variety of activities. Member comments gathered from telephone calls, letters, and personal contact are analyzed. The current industry trends and government actions are evaluated. Opinions are solicited through NAHC Report's Question of the Week. NAHC committees, the Forum of State Associations' Regulatory Affairs Advisory Committee, and the Board of Directors participate in development of positions for the annual Regulatory Blueprint for Action. NAHC publishes a list of major issues in NAHC Report annually and asks members to score each issue from the least to most important. The results are tabulated and industry priorities identified.

The Blueprint serves as NAHC's regulatory plan for action for the upcoming year. Issues that are identified as most important by members become the priorities in the plan for action. However, NAHC recognizes that priorities may shift during the course of any year as a result of Federal regulatory action or policy changes.

EXECUTIVE SUMMARY

The 1999 Regulatory Blueprint for Action and the priorities established by the membership reflect the impact of the major legislative and regulatory changes that have swept the home care community over the past three years. The Blueprint addresses current and anticipated regulations, providing insight into the problems posed, solutions, and their rationale.

Financial survival is of greatest concern to all home care providers today. Therefore, home health and hospice reimbursement issues are addressed in the first section of the Blueprint. This section is followed by sections on: survey and certification, administrative, coverage, and other. A separate section has been established for home medical equipment issues.

Regulatory priorities were determined through a survey of NAHC members. Members were asked to score current issues from "least important" to "most important." The results were tabulated and ranked according to the highest average score. The top home care regulatory priorities appear below.

  1. Promote development of an equitable PPS with an adequate case-mix adjuster.
  2. Fully reimburse agencies for the cost of implementing OASIS; schedule OASIS implementation based on PPS data needs.
  3. Ensure repayment flexibility for home health overpayments: Establish an outlier or exceptions process to IPS payment limits for patients with extensive care needs.
  4. Abolish payment delays caused by the sequential billing policy.
  5. Ensure industry participation if defining homebound based on patient status.
  6. Ensure repayment flexibility for home health overpayments: Grant forgiveness for per beneficiary limit overpayments where care was necessary and costs reasonable.
  7. Ensure use of statistically valid sampling methodology for post-payment review.
  8. Ensure repayment flexibility for home health overpayments: Suspend per beneficiary limits under IPS once budget targets are achieved.
  9. Refine claims review: require RHHIs to make coverage determinations within a reasonable time for claims under prepayment review.
  10. Abolish payment delays caused by sequential billing: Guarantee appropriate interest payments to agencies where reimbursement delays are caused by HCFA or the RHHI.

TABLE OF CONTENTS

I. REIMBURSEMENT REFORM

R1. PROMOTE DEVELOPMENT OF AN EQUITABLE PPS WITH AN ADEQUATE CASE MIX ADJUSTOR

R2. ABOLISH PAYMENT DELAYS CAUSED BY SEQUENTIAL BILLING POLICY

R3. REIMBURSE HOME HEALTH AGENCIES FOR TELEHEALTH AND PROVIDE FOR REGULATORY FLEXIBILITY

R4. CLARIFY THAT EXCEPTIONS APPLY TO BOTH THE PER VISIT COST LIMITS AND PER BENEFICIARY LIMITS

R5. ENSURE USE OF STATISTICALLY VALID SAMPLING METHODOLOGY FOR POSTPAYMENT REVIEW

R6. ENSURE NORMATIVE STANDARDS BASED ON ADEQUATE DATA TO PROMOTE APPROPRIATE UTILIZATION

R7. ENSURE REPAYMENT FLEXIBILITY FOR HOME HEALTH OVERPAYMENTS

R8. ENSURE HOME CARE SERVICES UNDER MANAGED CARE

R9. ENSURE APPROPRIATE COST FINDING METHODOLOGY

R10. ONLY PRORATE THE PER BENEFICIARY LIMITS WHEN PATIENTS ARE SERVED BY MORE THAN ONE AGENCY TO CIRCUMVENT THE LIMITS

R11. ENSURE ACCESS TO MEDICAID HOME CARE SERVICES

R12. DELETE THE APPLICATION OF EXTENDING SAVINGS FROM THE FREEZE TO THE PER BENEFICIARY LIMIT

R13. FULLY REIMBURSE HOME HEALTH AGENCIES FOR COSTS OF IMPLEMENTING OASIS; SCHEDULE OASIS IMPLEMENTATION BASED ON PPS DATA NEEDS

R14. ASSIGN THE MEDIAN OF THE COST LIMITS FOR THE CENSUS DIVISION FOR NEW PROVIDERS

R15. APPLY LIMITS IN THE AGGREGATE ACROSS WAGE INDEX AREAS

R16. CLARIFY THE "95% RULE" FOR HOSPICE PATIENTS IN NURSING FACILITIES

R17. DEVELOP NATIONAL STANDARDS FOR MEDICARE PAYMENT CRITERIA

R18. CHANGE OWNER & EXECUTIVE COMPENSATION SCREENS

R19. ENSURE ACCESS TO REVIEW OF MEDICARE REIMBURSEMENT DECISIONS

R20. ENCOURAGE ACCOUNTABILITY FOR HOSPICE UTILIZATION

R21. PROMOTE MEDICARE-MEDICAID COORDINATION

R22. CONTROL FRAUD AND ABUSE

R23. PUBLISH ACCURATE COST LIMITS ON A TIMELY BASIS AND ADJUST FOR NEW REQUIREMENTS

R24. ELIMINATE THE LESSER-OF-COSTS-OR-CHARGES PRINCIPLE

R25. REVISE MEDICARE SECONDARY PAYOR RULES

R26. ENSURE APPLICATION OF PROFESSIONAL AUDITING AND ACCOUNTING STANDARDS

R27. ENSURE YEAR 2000 PROTECTIONS FOR HHAs

R28. ESTABLISH "PROVIDER-BASED" AGENCY REQUIREMENTS THAT ARE RELATED TO THE STEP-DOWN ALLOCATION

R29. ENSURE HOSPICE INDUSTRY PARTICIPATION IN THE DEVELOPMENT AND IMPLEMENTATION OF A HOSPICE COST REPORT

R30. STUDY HOSPICE REIMBURSEMENT FOR DUALLY ELIGIBLE PATIENTS RESIDING IN NURSING FACILITIES

II. SURVEY AND CERTIFICATION

R31. INCREASE TRAINING FOR HOME HEALTH AND HOSPICE SURVEYORS

R32. ABOLISH PRESCRIPTIVE AND BURDENSOME PROCEDURAL REQUIREMENTS RELATED TO VERBAL ORDERS

R33. MAKE PERSONNEL QUALIFICATIONS CONSISTENT AND REQUIRE CRIMINAL BACKGROUND CHECKS

R34. SUPPORT REQUIRED QUALITY IMPROVEMENT PROGRAM

R35. SUPPORT PROPOSED QUALITY ASSESSMENT/PERFORMANCE IMPROVEMENT PROGRAM FOR HOSPICE

R36. CLARIFY SEPARATE ENTITY

R37. CONTINUE TO ALLOW HHAs TO PROVIDE SERVICES UNDER ARRANGEMENTS

R38. CONTINUE FLEXIBILITY IN REQUIRED COVERED SERVICES PROVIDED BY HHAs

R39. INCREASE FLEXIBILITY IN THE APPLICATION OF THE CONDITIONS OF PARTICIPATION

R40. ESTABLISH BRANCH OFFICE AND SERVICE AREA REQUIREMENTS THAT REFLECT QUALITY MEASURES

R41. FOCUS AIDE SUPERVISION ON INDIVIDUAL AIDES RATHER THAN EACH PATIENT

R42. IMPROVE AIDE QUALIFICATIONS TO PROTECT CONSUMERS

R43. REQUIRE REGION OFFICE REVIEW OF CHALLENGES TO DEFICIENCIES

R44. DEVELOP APPROPRIATE REGULATION FOR EQUITABLE IMPLEMENTATION OF OBRA-87 SANCTIONS

R45. MODIFY HOSPICE REGULATIONS FOR INPATIENT RESPITE CARE

R46. BASE SURVEY FREQUENCY FOR MEDICARE HOSPICE PROVIDERS ON PERFORMANCE

R47. ENCOURAGE PUBLICATION OF PROPOSED HOSPICE CONDITIONS OF PARTICIPATION (CoP) BY THE END OF 1999

III. ADMINISTRATION

R48. ENSURE INDUSTRY PARTICIPATION IN DEFINING HOMEBOUND BASED ON PATIENT STATUS

R49. ENSURE PROVIDER RIGHTS

R50. ENSURE REASONABLE APPLICATION AND IMPLEMENTATION OF HOME HEALTH SURETY BOND REQUIREMENT

R51. REFINE CLAIMS REVIEW

R52. ESTABLISH REFERRAL STANDARDS AND DISCHARGE PLANNING REGULATIONS THAT ENSURE PATIENT CHOICE AND EQUAL ADVANTAGE TO ALL PROVIDERS

R53. CONTROL PAPERWORK BY REQUIRING HCFA TO FOLLOW THE PAPERWORK REDUCTION ACT

R54. MODIFY PAYMENT TO PHYSICIANS FOR CARE PLAN OVERSIGHT

R55. CLARIFY THE ROLE OF PHYSICIANS

R56. REFRAIN FROM IMPOSING MANDATORY MEDICAL DIRECTOR REQUIREMENTS UNTIL THE NEED AND IMPACT ARE STUDIED

R57. PROVIDE ACCURATE INFORMATION TO CONSUMERS AND PHYSICIANS

R58. CLASSIFY CLAIMS CURRENTLY SUBJECT TO TECHNICAL DENIALS AS "INCOMPLETE CLAIMS"

R59. STUDY THE FEASIBILITY OF TREATMENT CODES

R60. INCREASE INFORMATION AND REQUIREMENTS FOR NEW AGENCIES

R61. STRENGTHEN REQUIREMENTS FOR PUBLICATION OF POLICY CHANGES BY HCFA

R62. ENSURE APPROPRIATE ACCESS TO HOSPICE SERVICES FOR PATIENTS WITH "PALLIATIVE CARE" DRGs

R63. ENSURE TIMELY UPDATE OF LOCAL MEDICAL REVIEW POLICIES FOR HOSPICE

R64. ENSURE REASONABLE PARTICIPATION REQUIREMENTS FOR HOME HEALTH AGENCIES

R65. DEVELOP A MODEL HOSPICE COMPLIANCE PLAN IN COOPERATION WITH THE DEPARTMENT OF HEALTH AND HUMAN SERVICES OFFICE OF THE INSPECTOR GENERAL (OIG)

IV. COVERAGE OF SERVICE

R66. PROMOTE CONSISTENT APPLICATION OF HIM-11 COVERAGE RULES

R67. ELIMINATE 485 DOCUMENTATION OF THE END POINT FOR DAILY SERVICE

R68. ENSURE DELIVERY OF NEEDED SERVICES TO MEDICARE BENEFICIARIES RESIDING IN ASSISTED LIVING FACILITIES

R69. CLARIFY HMO HOSPICE SERVICES TO MEDICARE BENEFICIARIES

R70. ENSURE TIMELY UPDATE OF LOCAL MEDICAL REVIEW POLICIES FOR HOSPICE

V. OTHER

R71. PROMOTE PROVIDER RIGHTS & OPPORTUNITIES TO COMPETE THROUGH EFFECTIVE ENFORCEMENT OF ANTITRUST LAWS

R72. PROMOTE CONSISTENT RULES FOR DISPENSING OF DRUGS

R73. SUPPORT EFFORTS THAT FACILITATE APPROVAL AND PROMOTE COST EFFECTIVENESS OF CLIA WAIVED TESTS

R74. DEVELOP QUALITY OF CARE STANDARDS FOR CONSUMER-DIRECTED CARE

R75. INFLUENCE OSHA REGULATIONS AND ENFORCEMENT AS APPROPRIATE TO THE HOME CARE AND HOSPICE SETTING

R76. MAXIMIZE USE OF HHAs IN CASE MANAGEMENT

R77. ENSURE ACCESS TO DRUGS NECESSARY FOR PAIN CONTROL

R78. AUTHORIZE THE USE OF ELECTRONIC SIGNATURES AND ENCOURAGE COMPUTER RECORD-KEEPING

VI. HOME MEDICAL EQUIPMENT

R79. PROTECT HOME OXYGEN SERVICES

R80. MAINTAIN INDUSTRY INPUT IN DETERMINING MEDICARE REIMBURSEMENT LEVELS FOR HME

R81. LIMIT HME COMPETITIVE BIDDING DEMONSTRATION SITES

R82. ANALYZE CONSOLIDATED BILLING FOR HME

R83. ALLOW FAXED CERTIFICATES OF MEDICAL NECESSITY FOR HME

R84. ENSURE APPROPRIATE HME SURETY BOND REQUIREMENT


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