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Medicaid Acronym of the Day – PERM

Payment Error Rate Measurement Program –

The Improper Payments Information Act (IPIA) of 2002 (amended in 2010 by the Improper Payments Elimination and Recovery Act or IPERA) requires the heads of Federal agencies to annually review programs they administer and identify those that may be susceptible to significant improper payments, to estimate the amount of improper payments, to submit those estimates to Congress, and to submit a report on actions the agency is taking to reduce the improper payments. The Office of Management and Budget (OMB) has identified Medicaid and the Children’s Health Insurance Program (CHIP) as programs at risk for significant improper payments. As a result, CMS developed the Payment Error Rate Measurement (PERM) program to comply with the IPIA and related guidance issued by OMB.

The PERM program measures improper payments in Medicaid and CHIP and produces error rates for each program. The error rates are based on reviews of the fee-for-service (FFS), managed care, and eligibility components of Medicaid and CHIP in the fiscal year (FY) under review. It is important to note the error rate is not a “fraud rate” but simply a measurement of payments made that did not meet statutory, regulatory or administrative requirements. FY 2008 was the first year in which CMS reported error rates for each component of the PERM program.

Further reading

https://www.cms.gov/Research-Statistics-Data-and-Systems/Monitoring-Programs/Medicaid-and-CHIP-Compliance/PERM/index.html?redirect=/PERM

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Medicaid Acronym of the Day – OMB

The Office of Management and Budget (OMB) is the largest office within the Executive Office of the President of the United States (EOP). OMB’s most prominent function is to produce the President’s Budget, but OMB also measures the quality of agency programs, policies, and procedures to see if they comply with the president’s policies and coordinates inter-agency policy initiatives. OMB prepares the President’s budget proposal to Congress and supervises the administration of the executive branch agencies. OMB evaluates the effectiveness of agency programs, policies, and procedures, assesses competing funding demands among agencies, and sets funding priorities. OMB ensures that agency reports, rules, testimony, and proposed legislation are consistent with the president’s budget and with administration policies.

OMB also oversees and coordinates the administration’s procurement, financial management, information, and regulatory policies. In each of these areas, OMB’s role is to help improve administrative management, to develop better performance measures and coordinating mechanisms, and to reduce any unnecessary burdens on the public.

OMB’s critical missions are:

Budget development and execution is a prominent government-wide process managed from the Executive Office of the President (EOP) and a device by which a president implements his policies, priorities, and actions in everything from the Department of Defense to NASA.
OMB manages other agencies’ financials, paperwork, and IT.

Further reading

https://en.wikipedia.org/wiki/Office_of_Management_and_Budget

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Medicaid Acronym of the Day – NPI

A National Provider Identifier or NPI is a unique 10-digit identification number issued to health care providers in the United States by the Centers for Medicare and Medicaid Services (CMS). The NPI has replaced the unique physician identification number (UPIN) as the required identifier for Medicare services, and is used by other payers, including commercial healthcare insurers. The transition to the NPI was mandated as part of the Administrative Simplifications portion of the Health Insurance Portability and Accountability Act of 1996 (HIPAA), and CMS began issuing NPIs in October 2006.[1] HIPAA covered entities such as providers completing electronic transactions, healthcare clearinghouses, and large health plans were required by regulation to use only the NPI to identify covered healthcare providers by May 23, 2007. CMS subsequently announced that as of May 23, 2008, CMS will not impose penalties on covered entities that deploy contingency plans to facilitate the compliance of their trading partners (e.g., those healthcare providers who bill them). The posted guidance document can be used by covered entities to design and implement a contingency plan. Details are contained in a CMS document entitled, “Guidance on Compliance with the HIPAA National Provider Identifier (NPI) Rule.” Small health plans have one additional year to comply.

All individual HIPAA covered healthcare providers (physicians, pharmacists, physician assistants, midwives, nurse practitioners, nurse anesthetists, dentists, denturists, chiropractors, clinical social workers, professional counselors, physical therapists, occupational therapists, pharmacy technicians, athletic trainers etc.) or organizations (hospitals, home health care agencies, nursing homes, residential treatment centers, group practices, laboratories, pharmacies, medical equipment companies, etc.) must obtain an NPI for use in all HIPAA standard transactions, even if a billing agency prepares the transaction. Once assigned, a provider’s NPI is permanent and remains with the provider regardless of job or location changes.

Other health industry workers, such as admissions and medical billing personnel, housekeeping staff, and orderlies, who provide support services but not health care, are not required to obtain the NPI.

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Further reading

https://en.wikipedia.org/wiki/National_Provider_Identifier

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Medicaid Acronym of the Day – NPPES

National Plan and Provider Enumeration System –

The NPI is the standard for a unique identifier for health care providers for use in the health care system. NPPES is the application that health care providers must use to be awarded an NPI number.

Within the NPPES, there are two types of providers:
• Type 1 Providers – Health care providers who are individuals, including physicians, dentists, and all sole proprietors (An individual is eligible for only one NPI.)
• Type 2 providers – Health care providers who are organizations, including physician groups, hospitals, nursing homes, and the corporation formed when an individual incorporates him/herself.

Further reading

https://nppes.cms.hhs.gov/webhelp/nppeshelp/NPPES%20FAQS.html#How-can-I-gain-access-to-my-Type-2-NPI

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Medicaid Acronym of the Day – NFLOC

Nursing facility (NF) level of care (LOC) is one of two eligibility components (the other is financial eligibility) for Medicaid reimbursement of NF services, as well as home and community based services (HCBS) offered as an alternative to people who would otherwise qualify to receive NF care.
Each State sets its own NF LOC criteria. Approval by the Centers for Medicare and Medicaid Services (CMS) is not required.

Generally, LOC determinations include either an assessment of certain functional needs—the need for assistance with Activities of Daily Living (ADLs); an assessment of certain clinical needs; or both.

Activities of Daily Living (ADLs) consist of self-care tasks that enable a person to live independently in his own home such as:
• Personal hygiene and grooming;
• Dressing and undressing;
• Self feeding;
• Functional transfers (getting into and out of bed or wheelchair, getting onto or off toilet, etc.);
• Bowel and bladder management; and
• Ambulation (walking without use of an assistive device (walker, cane, or crutches) or using a
wheelchair).

LOC determinations may also include consideration of other factors which, while not ADLs per se, nonetheless impact a person’s ability to live safely and independently in the community, such as:
• Communication;
• Cognitive status;
• Behavior; or
• The ability to self-administer medications.

And finally, LOC determinations may take into consideration the applicant’s medical or clinical needs such as:
• The need for skilled nursing or rehabilitative care.

The ADL and clinical needs assessed for NF LOC vary by state.

Further reading

http://www.tba.org/sites/default/files/Level%20of%20Care%20Guide.pdf

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Medicaid Acronym of the Day – NDC

The National Drug Code (NDC) is a unique product identifier used in the United States for drugs intended for human use. The Drug Listing Act of 1972[1] requires registered drug establishments to provide the Food and Drug Administration (FDA) with a current list of all drugs manufactured, prepared, propagated, compounded, or processed by it for commercial distribution. Drug products are identified and reported using the NDC.

There are several alternative drug classification systems in addition to NDC that are also commonly used when analyzing drug data, such as Generic Product Identifier (GPI).

Further reading

https://en.wikipedia.org/wiki/National_Drug_Code

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Medicaid Industry Who’s Who Series: Rosemarie Day

Medicaid Who’s Who: Rosemarie Day – Founder and President of Day Health Strategies

  1.  Which segment of the industry are you currently involved?

A: Day Health Strategies provides experience-based, cost-effective consulting services to private and public organizations that are focusing on strategic opportunities stemming from health reform, health sector transformation, and the emerging benefits marketplace.

Currently, my firm is working on implementing one of the Medicaid Accountable Care Organizations in Massachusetts. This project has included assisting in the creation of a governance structure, developing the model of care, completing regulatory compliance submissions, and assisting with investment planning and project management. We also recently worked with Rhode Island’s Executive Office of Health and Human Services to take a look at some long-standing issues of resource scarcity and flawed organizational design and develop new approaches and modern organizational design that would better serve the needs of the Secretariat and Medicaid.

2. How many years have you been in the Medicaid industry?

A: I spent most of my career working in anti-poverty and health programs. I have been working in the Medicaid and health insurance exchange space for 15 years. This includes working as the Chief Operating Officer of the Massachusetts’s Medicaid program, as the founding Deputy Director & Chief Operating Officer of the Health Connector in Massachusetts, and through my consulting work with my firm Day Health Strategies.

 3.  What is your focus/passion? (Industry related or not)

A: Two of my biggest passions are reducing inequality in the USA and making the healthcare system more patient-centered and affordable.

 4.  What is the top item on your “bucket list?”

A: The top item on my bucket list is to continue to travel around the world, seeing as many countries as possible.

 5.  What do you enjoy doing most with your personal time?

A: In my personal time, I really enjoy reading, exercising (especially if it involves music, dance is best!), and traveling.

 6. Who is your favorite historical figure and why? 

A: Elizabeth Cady Stanton is my favorite historical figure because she was a feminist way ahead of her time who managed to be both an advocate and mother to 7 children. She was able to go back and forth between advocate and family duties in a time before multi-tasking was as prevalent as it is now. I really respect someone who could juggle it all, especially in that era. I also feel that she did not get enough credit for getting women the right to vote.

7.  What is your favorite junk food?

AI love BBQ chips and Dr. Pepper!

 8.  Of what accomplishment are you most proud?

A: I am most proud of establishing the Massachusetts Health Connector. It was very challenging and took a lot of work, but it was extremely rewarding to see that the Connector’s success led it to become the model for the Affordable Care Act.

 9. For what one thing do you wish you could get a mulligan?

A: Generally, I feel like I always learn something from the things in my life that went poorly. But I will say that I was raised to be exceedingly polite and I should have been a little more outspoken earlier.

 10. What are the top 1-3 issues that you think will be important in Medicaid during the next 6 months? 

A: 

  • Waivers will be something to watch over the next 6 months. Depending on the agendas of the state, the state waivers vary greatly. Many conservative states have pending waivers that would limit eligibility or add additional requirements for eligibility. Many other states are in the process of implementing their 1115 waivers that were approved before the Trump administration. Another aspect of state waivers to track is the idea of the super-waiver that would combine 1332 with 1115 waivers.
  • Medicaid Managed Care has to prove its value. With budget pressures, managed care can’t just be another layer of administrative overhead. Budget pressures will persist and there will be a continued search to do more with less. One way that MCOs can think about adding value is by partnering with provider organizations to work together and align their incentives. This partnership is being done in many states through Medicaid Accountable Care Organizations (ACOs). Because my company is based in Massachusetts, we are keeping an eye on the Massachusetts Medicaid ACO program, which just launched March 1st, 2018, and looking at how the lessons learned can be applied to other states.
  • Medicaid has always required strong leaders but now leaders need to be able to think across silos and outside of the traditional purview of Medicaid. This is because of the complexity of healthcare and the many lines that are blurring, including the merging of insurers and providers, and the changing market of subsidized care (exchanges and efforts to expand or contract Medicaid populations). Governors need a strategic health advisor, which could potentially be encompassed in the role of the Medicaid Director.

 

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Medicaid Acronym of the Day – NCQA

The National Committee for Quality Assurance is a private, 501(c)(3) not-for-profit organization dedicated to improving health care quality. Since its founding in 1990, NCQA has been a central figure in driving improvement throughout the health care system, helping to elevate the issue of health care quality to the top of the national agenda.

The NCQA seal is a widely recognized symbol of quality. Organizations incorporating the seal into advertising and marketing materials must first pass a rigorous, comprehensive review and must annually report on their performance. For consumers and employers, the seal is a reliable indicator that an organization is well-managed and delivers high quality care and service.

NCQA has helped to build consensus around important health care quality issues by working with large employers, policymakers, doctors, patients and health plans to decide what’s important, how to measure it, and how to promote improvement. That consensus is invaluable — transforming our health care system requires the collected will and resources of all these constituencies and more.

NCQA’s programs and services reflect a straightforward formula for improvement: Measure. Analyze. Improve. Repeat. NCQA makes this process possible in health care by developing quality standards and performance measures for a broad range of health care entities. These measures and standards are the tools that organizations and individuals can use to identify opportunities for improvement. The annual reporting of performance against such measures has become a focal point for the media, consumers, and health plans, which use these results to set their improvement agendas for the following year.

NCQA’s contribution to the health care system is regularly measured in the form of statistics that track the quality of care delivered by the nation’s health plans. Every year for the past five years, these numbers have improved; health care protocols have been refined, doctors have learned new ways to practice, and patients have become more engaged in their care. Those improvements in quality care translate into lives saved, illnesses avoided and costs reduced. For instance, for every additional person who receives beta blockers after a heart attack, chances of suffering a second, perhaps fatal, heart attack are reduced by up to 40%.

NCQA consistently raises the bar. Accredited health plans today face a rigorous set of more than 60 standards and must report on their performance in more than 40 areas in order to earn NCQA’s seal of approval. And even more stringent standards are being developed today. These standards will promote the adoption of strategies that we believe will improve care, enhance service and reduce costs, such as paying providers based on performance, leveraging the Web to give consumers more information, disease management and physician-level measurement.

Health plans in every state, the District of Columbia and Puerto Rico are NCQA Accredited. These plans cover 109 million Americans or 70.5 percent of all Americans enrolled in health plans.

Further reading

http://www.ncqa.org/

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Medicaid Acronym of the Day – NVSS

The National Vital Statistics System (NVSS) collects official vital statistics data based on the collection and registration of birth and death events at the state and local levels. NCHS works in partnership with the vital registration systems in each jurisdiction to produce critical information on such topics as teenage births and birth rates, prenatal care and birth weight, risk factors for adverse pregnancy outcomes, infant mortality rates, leading causes of death, and life expectancy.

Further reading

https://www.cdc.gov/nchs/nvss/index.htm