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Medicaid Acronym of the Day – HCPCS

The Healthcare Common Procedure Coding System (HCPCS, often pronounced by its acronym as “hick picks”) is a set of health care procedure codes based on the American Medical Association’s Current Procedural Terminology (CPT).[1]

The acronym HCPCS originally stood for HCFA Common Procedure Coding System, a medical billing process used by the Centers for Medicare and Medicaid Services (CMS). Prior to 2001, CMS was known as the Health Care Financing Administration (HCFA). HCPCS was established in 1978 to provide a standardized coding system for describing the specific items and services provided in the delivery of health care. Such coding is necessary for Medicare, Medicaid, and other health insurance programs to ensure that insurance claims are processed in an orderly and consistent manner. Initially, use of the codes was voluntary, but with the implementation of the Health Insurance Portability and Accountability Act of 1996 (HIPAA) use of the HCPCS for transactions involving health care information became mandatory.[2]

HCPCS includes three levels of codes:

  • Level I consists of the American Medical Association’s Current Procedural Terminology (CPT) and is numeric.
  • Level II codes are alphanumeric and primarily include non-physician services such as ambulance services and prosthetic devices, and represent items and supplies and non-physician services, not covered by CPT-4 codes (Level I).
  • Level III codes, also called local codes, were developed by state Medicaid agencies, Medicare contractors, and private insurers for use in specific programs and jurisdictions. The Health Insurance Portability and Accountability Act of 1996 (HIPAA) instructed CMS to adopt a standard coding systems for reporting medical transactions. The use of Level III codes was discontinued on December 31, 2003, in order to adhere to consistent coding standards.

Further reading

https://www.cms.gov/Medicare/Coding/MedHCPCSGenInfo/index.html

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Medicaid Acronym of the Day – HCC

Risk Adjustment and Hierarchical Condition Category (HCC) coding is a payment model mandated by the Centers for Medicare and Medicaid Services (CMS) in 1997. Implemented in 2003, this model identifies individuals with serious or chronic illness and assigns a risk factor score to the person based upon a combination of the individual’s health conditions and demographic details. The individual’s health conditions are identified via International Classification of Diseases – 10 (ICD –10) diagnoses that are submitted by providers on incoming claims. There are more than 9000 ICD-10 codes that map to 79 HCC codes in the Risk Adjustment model.

CMS requires documentation in the person’s medical record by a qualified health care provider to support the submitted diagnosis. Documentation must support the presence of the condition and indicate the provider’s assessment and/or plan for management of the condition. This must occur at least once each calendar year in order for CMS to recognize the individual continues to have the condition.

Further reading

https://www.icd10monitor.com/what-you-need-to-know-about-hierarchical-condition-categories-and-icd-10

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Medicaid Acronym of the Day – HAN

CDC’s Health Alert Network (HAN) is CDC’s primary method of sharing cleared information about urgent public health incidents with public information officers; federal, state, territorial, and local public health practitioners; clinicians; and public health laboratories.

CDC’s HAN collaborates with federal, state, territorial, and city/county partners to develop protocols and stakeholder relationships that will ensure a robust interoperable platform for the rapid distribution of public health information. The HAN project is intended to “ensure that each community has rapid and timely access to emergent health information; a cadre of highly-trained professional personnel; and evidence-based practices and procedures for effective public health preparedness, response, and service on a 24/7 basis.”

Currently, HAN is a strong national program, providing vital health information and the infrastructure to support the dissemination of that information at the state and local levels, and beyond. A vast majority of the State-based HAN programs have over 90% of their population covered under the umbrella of HAN. The HAN Messaging System currently directly and indirectly transmits Health Alerts, Advisories, and Updates to over one million recipients. The current system is being phased into the overall PHIN messaging component.[1] CDC’s HAN is a strong national program, providing vital health information and the infrastructure to support dissemination at state and local levels, and beyond. The vast majority of the state-based HAN programs have over 90% of their populations covered under the umbrella of HAN. The HAN messaging system directly and indirectly transmits Health Alerts, Advisories, Updates, and Info Services to over one million recipients.

HAN Message Types

Health Alert: provides vital, time-sensitive information for a specific incident or situation; warrants immediate action or attention by health officials, laboratorians, clinicians, and members of the public; and conveys the highest level of importance.

Health Advisory: provides important information for a specific incident or situation; contains recommendations or actionable items to be performed by public health officials, laboratorians, and/or clinicians; may not require immediate action.

Health Update: provides updated information regarding an incident or situation; unlikely to require immediate action.

Info Service: provides general public health information; unlikely to require immediate action.

Further reading

https://emergency.cdc.gov/han/index.asp

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Medicaid Acronym of the Day – FUL

The Affordable Care Act Federal Upper Limit — or ACA FUL — is a drug pricing benchmark based on a new formula detailed in the Affordable Care Act. ACA FUL will be included among a variety of commonly consulted drug pricing benchmarks. They are derived from various methods and represent nuanced different assessments for comparison, analysis, and decisions related to reimbursement and product positioning.

Further reading

https://www.medicaid.gov/medicaid/prescription-drugs/federal-upper-limits/index.html

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Medicaid Acronym of the Day – FPG

There are two slightly different versions of the federal poverty measure: poverty thresholds and poverty guidelines.

The poverty thresholds are the original version of the federal poverty measure. They are updated each year by the Census Bureau. The thresholds are used mainly for statistical purposes — for instance, preparing estimates of the number of Americans in poverty each year. (In other words, all official poverty population figures are calculated using the poverty thresholds, not the guidelines.) Poverty thresholds since 1973 (and for selected earlier years) and weighted average poverty thresholds since 1959 are available on the Census Bureau’s Web site. For an example of how the Census Bureau applies the thresholds to a family’s income to determine its poverty status, see “How the Census Bureau Measures Poverty” on the Census Bureau’s web site.

The poverty guidelines are the other version of the federal poverty measure. They are issued each year in the Federal Register by the Department of Health and Human Services (HHS). The guidelines are a simplification of the poverty thresholds for use for administrative purposes — for instance, determining financial eligibility for certain federal programs.

The poverty guidelines are sometimes loosely referred to as the “federal poverty level” (FPL), but that phrase is ambiguous and should be avoided, especially in situations (e.g., legislative or administrative) where precision is important. The January 2018 poverty guidelines are calculated by taking the 2016 Census Bureau’s poverty thresholds and adjusting them for price changes between 2016 and 2017 using the Consumer Price Index (CPI-U). The poverty thresholds used by the Census Bureau for statistical purposes are complex and are not composed of standardized increments between family sizes. Since many program officials prefer to use guidelines with uniform increments across family sizes, the poverty guidelines include rounding and standardizing adjustments in the formula.

Further reading

http://familiesusa.org/product/federal-poverty-guidelines

https://aspe.hhs.gov/poverty-guidelines

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Medicaid Acronym of the Day – FIDE SNP

Fully Integrated Dual Eligible (FIDE) SNPs were created by Congress in section 3205 of the Affordable Care Act (ACA). Designed to promote the full integration and coordination of Medicare and Medicare benefits for dual eligible beneficiaries by a single managed care organization, FIDE-SNPs are described in section 1853(a)(1)(B)(iv) of the Social Security Act and at 42 CFR §422.2.

FIDE SNPs must meet the following five elements:

  • Enroll special needs individuals entitled to medical assistance under a Medicaid State Plan, as defined in Section 1859(b)(6)(B)(ii) of the Act and 42 CFR Section 422.2 and described in detail in Section 40.5.3 of this chapter;
  • Provide dually-eligible beneficiaries access to Medicare and Medicaid benefits under a single managed care organization;
  • Have a CMS approved MIPPA compliant contract with a State Medicaid Agency that includes coverage of specified primary, acute, and long-term care benefits and services, consistent with State policy, under risk-based financing;
  • Coordinate the delivery of covered Medicare and Medicaid health and long-term care services, using aligned care management and specialty care network methods for high-risk beneficiaries; and,
  • Employ policies and procedures approved by CMS and the State to coordinate or integrate enrollment, member materials, communications, grievance and appeals, and quality improvement.

Further reading

https://www.cms.gov/Medicare/Health-Plans/SpecialNeedsPlans/Downloads/Special-Need-Plans-SNP-Frequently-Asked-Questions-FAQ.pdf

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Medicaid Industry Who’s Who Series: Audrey Taylor

Medicaid Who’s Who: Audrey Taylor – CEO and Founder of netlogx LLC

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

A: netlogx has a wide breadth and depth of experience in the Medicaid Industry with several specializations spanning both State governments and private sector healthcare entities. Our expertise includes: 

  • Medicaid Management Information System (MMIS) replacement and modularity projects supporting 
    • Vision and planning 
    • Public procurements 
  • Integration Verification & Validation (IV&V)
  • Centers for Medicare & Medicaid Services (CMS) Certification 
  • Medicaid Information Technology Architecture Self-Assessment (MITA SSA)
    • Medicaid Policy regulatory Traceability at the state and federal levels
    • Support to Managed Care Entities

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

A: Since the inception of the company in 1998, netlogx has been operating in the health and human services practice area and has actively supported State Medicaid programs for all 20 years. 

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

A: I am passionate about lifting up women to help them follow their dreams and meet their goals; especially those who own, or seek to own, their own businesses. 

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

A: At the netlogx corporate office we have a “Before I Die Wall” and I’ve added that I’d like travel to a destination of my choice with no prior planning.

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

A: Reading is my favorite past time; I find it provides the opportunity to visit other cities, counties and periods of history all with the turn of a page. 

 6. Who is your favorite historical figure and why? 

A: I find the lives of iconic women of history to be illuminating – as I read about Elizabeth I and her choice not to marry, I marvel at how she learned to navigate in a man’s world.

7.  What is your favorite junk food?

A: As a former Brit turned American, I have two:  Here in the U.S. it is a hamburger, ideally with blue cheese, lettuce, tomato and onion. Back in the U.K., it is fish and chips with a side of curry sauce!

 8.  Of what accomplishment are you most proud?

A: My family – my husband is my greatest champion and partner in both life and work and our sons are both a joy and a challenge.  Since our sons are both adults now, it will be all joy from here on in!

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

A:  I feel that I learn more from my mistakes than from my successes, so I guess I’m going to skip the mulligan.

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

A:

  • The funding of new Medicaid Welfare-To-Work programs to determine who bears the direct financial burden for the programs – state budgets or managed care health plans.
  • The impact to State budgets as they begin to plan covering the increased state share of costs for the Medicaid expansion populations when federal program funding at 100% ends by 2020.

 

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Medicaid Acronym of the Day – FHIAP

The Family Health Insurance Assistance Program, or FHIAP, was created by the 1997 Oregon Legislature to help uninsured, income-eligible Oregonians afford private health insurance. The program pays from 50 percent to 95 percent of its members’ monthly premium for health insurance.

FHIAP does not help pay for deductibles, co-pays, or other coinsurance. FHIAP will assist clients in paying their premium either for individual insurance, or insurance through their employer (Group insurance). It is NOT an insurance plan. It does NOT pay for co-pays or deductibles.
It will subsidize dental for group insurance only.

The differences between FHIAP and Medicaid:
FHIAP is not an insurance plan; therefore, it does not pay for anything other than its portion of the premium.
With FHIAP, deductibles, co-pays, and other cost sharing items are paid by the client.
Medicaid pays it all.

Further reading

http://library.state.or.us/repository/2008/200803131406124/index.pdf

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Clay’s Weekly Medicaid RoundUp: Week of January 15th 2018

Soundtrack for today’s RoundUp pessimist readers- http://bit.ly/2DveZ0w  (what an amazing song, nay – album!)

 

For optimist readers- http://bit.ly/2DvfoQA

 

LET’S TALK SHOP AT MEDICAID INNOVATIONS 2018 – I will be in Florida again (7th year for me, I think) for the Medicaid Innovations Conference. If you are going, let’s plan on meeting up. Jan 31-Feb 2, 2018. Check it out here- http://bit.ly/2mbKtl1

  

WORKIN’ FOR THE WEEKEND- The big buzz this week was KY getting its Medicaid work requirements waiver approved by CMS. This will have big implications for the dozen or so other states waiting on approval for their own waivers. This is an important change for the Medicaid program, so let’s spend this week’s roundup considering perspectives on it.

 

FIRST THE FACTS, MAM – KY is the first state to get approval for a slew of “conservative” features to modify its Medicaid program. Features include a work requirement (that doesn’t apply to pregnant women, children, the elderly, the physically disabled or the developmentally disabled), bennies will pay premiums up to 4% of their income, and bennies can be locked-out of coverage if they don’t prove their eligibility as required / scheduled. For the work requirements (also called “community engagement”), bennies that must meet these have to put in 80 hours a month starting in July (giving them 6 months to find a part-time job if they want to keep their Medicaid benefits). Overall about 350,000 bennies have to meet this requirement, and about 175,000 of them already meet it. One last thing on the “work” requirement – under new CMS guidelines on the next-gen waivers, if a benny has an addiction, getting treatment can count towards your hours.

 

Now let’s look at some point / counter-point for each camp.

 

TALKING POINTS FROM THE “SKY IS FALLING/ REPUBLICANS ARE EVIL CREW”-

  • It is in violation of the federal statute because it does not meet the objectives of the program, and lawsuits will stop it

Counterpoints: Litigation (with or without a belief in its merit even by the plaintiff) is a proven method of resistance. One can just as easily argue that it makes the program more efficient and thus frees up more money to better meet the objectives of the program.

  • It overcomplicates eligibility / will be too hard to enforce / creates more costs to enforce than it saves

Counterpoints:  Maybe. It could be very simple if states work with the right vendors. This is a whole new area for technology solution providers, and they could build off of existing systems like the unemployment data sets.

  • It is mean / cruel

Counterpoints: Not really. States have made sure to target who this applies to so that those that cannot be expected to work are not under the requirement. But I am sure this attack will be repeated over and over anyway. Emotional (regardless of veracity) appeals work.

  • People will die because of these changes

Counterpoints: Unproveable, but high value to throw out the bombastic claim (with no cost of making it)

  • Sick people cannot hold down a job

Counterpoints: If they are that sick, then do they meet the disability requirements?

  • Few will be under these requirements because most on Medicaid can’t work –

Counterpoints: What about the 50% of those under new requirements in KY that already are working? Or the study in JAMA showing about half of Medicaid bennies in Michigan working? This is just “making it official” for half of those impacted, and putting the other half on notice.

  • This is unproven

Counterpoints: So are all new ideas at first (especially in Medicaid). And most 1115 demo waivers remain demos forever and never really get evaluated anyway (see recent OIG criticism on this). If we slapped buzzwords like “population health” or “big data” on it, would you like it then? Or maybe a job could be one of those “social determinants of health”?

  • This will hurt hospitals / providers because there will be less “coverage”

Counterpoints: Maybe. Or maybe DSH never really went away, and maybe uncompensated care costs are an unproven black box useful for strong-arm budget tactics.

POINTS FROM THE “THIS IS WHAT INNOVATION LOOKS LIKE EVEN IF YOU DISAGREE WITH IT CREW”-

  • We are tired of Medicaid destroying our budgets and this is a fair way to deal with this

Counterpoints: For the most part I agree. The tricky part is this is healthcare, and you have to think through how to deal with catastrophic coverage. And the idea that healthcare is a human right has gained a lot of ground in recent years.

  • People who can work should (if they want public benefits)

Counterpoints: See above

  • This will help people rise out of poverty / brings them dignity in work

Counterpoints: I also agree. I personally know several people who were homeless / near homeless and a job and the commitment to it changed their life. But- Making this work will require an overall strategy in your state tied to jobs / your local economy. You can’t just get this waiver approved and expect various issues to magically be resolved.

  • This will allow for more money to be spent on the disabled / most vulnerable

Counterpoints: Makes total sense. Now if we could also deal with all the cash lost to fraud. I have some ideas on that. Call me.

  • People who don’t make the effort to work probably won’t make the effort to improve their own health

Counterpoints: Big Duh, here. Big question is where line is drawn investing limited dollars on those who won’t get engaged (at the cost of not spending it on those who will). Or just pretend there is unlimited dollars for Medicaid and all is fine and we can go back to the fairy tale of the way Medicaid was funded before Evil Trump came along.

  • Its about time the federal-state nature of Medicaid wasn’t a one-way street. States should have more control of their programs and not just have to do whatever the feds force them to do (with ridiculous, coercive funding incentives that create no real choice for states).

Counterpoints: I think you can guess by now I agree with this one. Here, Hear!

WHAT’S NEXT – There’s a cue forming for these types of waivers. Last I looked it was 10 states — Arizona, Arkansas, Indiana, Kansas, Kentucky, Maine, New Hampshire, North Carolina, Utah and Wisconsin.  Combine the KY approval with CMS guidance recently released, and we will watch most of these get approved before summer. And more will follow.

CMS head Veerma is not playing around. She continues describe opponents of these ideas as holding onto “the soft bigotry of low expectations.” Whether the general blogosphere / MSM will ignore that volley, or attack it directly (many do), I am not sure. But she is claiming moral high ground from a conservative vantage point. And to do that in Medicaid is perhaps unprecedented. Or at least its been so long since we’ve seen it maybe we don’t recognize it. It may just be that fiscal hawks have had enough of being bullied by the doves, and have found their voice in a lady named Seema.

That’s it for this week. As always, please send me a note with your thoughts to clay@mostlymedicaid.com or give me a buzz at 919.727.9231. Get outside (at least to put salt on your steps) and keep running the race (you know who you are).

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