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PROVIDERS (VA)- Judge scraps federal assent to Virginia Medicaid rule

 
 

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The article below has been highlighted and summarized by our research team. It is provided here for member convenience as part of our Curator service.

 
 

[MM Curator Summary]: In which a US circuit judge tells a federal HHS agency how to interpret the Social Security Act.

 
 

Clipped from: https://godanriver.com/news/state-and-regional/govt-and-politics/judge-vacates-federal-ok-for-virginia-medicaid-rule/article_643accec-3cf9-5df4-bf5e-162a4cb765be.html

The General Assembly’s 2020 bid to slow the overuse of emergency rooms got a quick thumbs up from the U.S. Centers for Medicare and Medicaid Services – but in the end it was too quick and a federal judge ruled that approval should be vacated.

It could mean doctors and hospitals are paid more for caring for Medicaid recipients whose visits to ERs and hospitals could have been avoided, and might boost Medicaid spending in Virginia by 0.2%.  

The case, filed by the Virginia Hospital and Healthcare Association, the Medical Society of Virginia and the College of Emergency Physicians, turned on language in the state budget. It said Medicaid’s payment for an ER visit that ended with a diagnosis that the visit was avoidable should be based on the final diagnosis instead of the usually much more costly rate for an ER services.

In addition, the associations said budget language saying claims for patients readmitted to a hospital within 30 days of discharge would be deemed to be potentially preventable and would therefore be paid at only half the usual rate.

The hospitals and doctors groups said the measure’s effect was “to bilk of tens of millions of dollars [from] those hospitals and physicia

ns who treat Medicaid patients.”

Since the state runs Virginia’s Medicaid program, but  it is jointly funded by the state and federal government, the Centers for Medicare and Medicaid Services need to approve changes in the way a state administers the program, which the federal agency did.

But Judge Henry E. Hudson, of the U.S. District Court in Richmond ruled that the federal agency did not follow the federal Medicaid law when approving the Virginia changes because it treated payment for care of people with similar symptoms differently for different patients.

“Although services for those with similar presenting symptom but different final diagnoses will be comparable, it is indisputable that reimbursement for those services will be different if the final diagnoses are deemed ‘preventable,'” Hudson ruled.

Thus, he ruled, because the Downcoding Provision conflicts with other requirements within the Medicaid Act, CMS’ approval of the Downcoding Provision was not in accordance with law.

He found that the federal agency acted arbitrarily in approving the Virginia changes.

CMS’ approval of the amendment [to Virginia’s Medicaid plan] did not provide any explanation or justification,” Hudson ruled.

He said the lack of any analysis or explanation in response to doctors’ and hospitals’ objections to the changes “renders its approval” of the provision “arbitrary and capricious.”

Hudson dismissed claims that the measures violated the 5th Amendment’s ban on government taking property without due process.

He also dismissed the hospitals’ and doctors’ claims against the state Medicaid agency and its director, on the grounds that they incorrectly argued that the federal Medicaid law gave them a private right of action against the state.

Virginia’s Medicaid agency had said the downcoding provision would save $40 million a year while the readmission rule would save $15 million.

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One third of Americans don’t have access to primary care providers in their communities, according to a study from the National Association of Community Health Centers published last month.

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RX- Lilly ordered to pay millions more in False Claims Act case

 
 

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The article below has been highlighted and summarized by our research team. It is provided here for member convenience as part of our Curator service.

 
 

[MM Curator Summary]: Lilly appealed and the bill keeps going up.

 
 

Clipped from: https://www.fiercepharma.com/pharma/lilly-damages-tripled-183m-long-running-false-claims-case

 
 

When a federal jury last year ordered Eli Lilly to pay $61 million for skimping out on Medicaid rebates, the company vowed to fight the verdict. But instead of the result Lilly wanted, the award has been tripled to more than $183 million.

On Tuesday, Illinois federal judge Harry Leinenweber ruled that Eli Lilly owes triple damages from last year’s award after whistleblower Ronald Streck convinced a jury that the company violated the False Claims Act and short-changed Medicaid on rebate payments.

Since the case falls under the False Claims Act, the award was eligible for “trebled” damages, according to court filings.

The case dates to 2014, when whistleblower Streck—a pharmacist and lawyer—sued Eli Lilly for allegedly launching retroactive price increases and failing to pay Medicaid rebates based on the higher prices.

Streck and his attorneys moved forward with litigation in 2018 after the U.S. government declined to intervene in the case, Streck’s law firm said last year.

In the order Tuesday, Leneinweber pointed out that Lilly “changed its practices years before the trial.” In court, Lilly argued its corrective actions weighed in favor of “minimal, if any, penalties,” according to the document.

Still, Leneinweber decided that the company indeed owes $183.69 million under the “trebled” damages rules in the False Claims Act. The judge ultimately noted that “while Lilly could have, of course, behaved better, it could have acted far worse.”

Lilly, for its part, said it’s “committed to upholding high standards of corporate conduct in our business dealings.” The company is “disappointed” with the outcome, but it plans to appeal and is “confident that the Seventh Circuit will reverse,” a spokesperson said over email.

Streck also filed a False Claims Act whistleblower suits against Bristol Myers Squibb and other companies in 2013 but later withdrew his claims against the other defendants. BMS ultimately settled for $75 million in 2021 while Astellas Pharma’s U.S. unit resolved its case for $18 million that same year.

Editor’s note: This story has been updated with comments from Eli Lilly. 

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FWA (CT)- Connecticut Psychologist Pays $658K to Settle Allegations She Received Payments from Medicare and Medicaid for Services Not Provided

 
 

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[MM Curator Summary]: Husband and wife psychiatrists sole $658k of your tax dollars with a Medicaid scam. They did not say thank you.

 
 

 
 

Clipped from: https://www.justice.gov/usao-ct/pr/connecticut-psychologist-pays-658k-settle-allegations-she-received-payments-medicare-and

Vanessa Roberts Avery, United States Attorney for the District of Connecticut, and William Tong, Connecticut Attorney General, today announced that Dr. EVELYN LLEWELLYN has entered into a civil settlement agreement with the federal and state governments in which she will pay $658,294 to settle allegations that she received payments from the Medicare and Medicaid programs for psychology services that were not provided.

Llewellyn is a psychologist licensed by the State of Connecticut.  She is married to Dr. Michael Lonski, PhD, who is also a psychologist licensed by the State of Connecticut.  Llewellyn and Lonski maintained separate medical practices in psychology operated out of their home offices in Greenwich.  Lonski was responsible for submitting claims for reimbursement to insurance programs, including Medicare and Medicaid, for the psychology services allegedly performed by Lewellyn and Lonski.

The government alleges that Llewellyn received payment for claims submitted by Lonski to the Medicare and Medicaid programs for psychology services allegedly provided by Llewellyn to Medicare and Medicaid beneficiaries that were, in fact, not provided.

To resolve the governments’ allegations, Llewellyn has agreed to pay $658,294, which covers the time-period from November 11, 2014, through and including February 5, 2020.

On December 12, 2022, Lonski pleaded guilty in Hartford federal court to health care fraud.  He is scheduled to be sentenced on June 12.

This matter was investigated by the Office of Inspector General for the Department of Health and Human Services and the Federal Bureau of Investigation.  The case is being prosecuted by Assistant U.S. Attorneys Richard M. Molot and Susan L. Wines, and by Assistant Attorney General Joshua Jackson of the Connecticut Office of the Attorney General.

People who suspect health care fraud are encouraged to report it by calling 1-800-HHS-TIPS.

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FWA (CT) Hartford Woman Charged With Stealing Medicaid Benefits

 
 

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The article below has been highlighted and summarized by our research team. It is provided here for member convenience as part of our Curator service.

 
 

[MM Curator Summary]: Ebony Mayo stole a Medicaid member ID to not have to pay for her own costs of care with her commercial insurance copays. You paid $16k for her to be able to do that.

 
 

Clipped from: https://patch.com/connecticut/hartford/hartford-woman-charged-stealing-medicaid-benefits-state

Crime & Safety


Connecticut’s chief state’s attorney charges the 42-year-old with using someone else’s identity to get Medicaid coverage.

 
 

Posted Fri, May 5, 2023 at 9:28 am ET|Updated Fri, May 5, 2023 at 9:30 am ET

 
 

State authorities have charged a Hartford woman with illegally obtaining Medicaid benefits for medical services so as to avoid co-pays with her regular medical insurance provider. (Shutterstock)

HARTFORD, CT — A Hartford woman has been charged this week with illegally obtaining Medicaid benefits when she wasn’t eligible.

Ebony Mayo, 42, of Hartford, was charged Wednesday with improperly using the identity of a Medicaid recipient and using that recipient’s identification to get medical goods and services for herself.

She was charged by inspectors from the Medicaid Fraud Control Unit in the Office of the Chief State’s Attorney.

Find out what’s happening in Greater Hartfordwith free, real-time updates from Patch.

Mayo was charged with one count each of first-degree larceny by defrauding a public community, health insurance fraud and first-degree identity theft.

According to the arrest warrant affidavit, from March 2021 through October 2021, Mayo utilized the Medicaid number and personal identification of another party to acquire medical treatment and services for herself.

Find out what’s happening in Greater Hartfordwith free, real-time updates from Patch.

State officials said Mayo admitted to using the identity and Medicaid card of another to pay for her own medical visits and medications, even though she had her own insurance, in order to avoid co-payments.

The investigation revealed that by Mayo causing the fraudulent claims, Medicaid paid 93 claims for service amounting to a loss of $15,778, according to authorities.

Mayo was released on a $20,000 non-surety bond and is scheduled to appear in Hartford Superior Court May 16.

Each of the charges, according to state officials, are class B felonies punishable by up to 20 years in prison.

Anyone with knowledge of suspected fraud and abuse in the public health care system is asked to contact the Medicaid Fraud Control Unit at the Chief State’s Attorney’s Office at 860-258-5838.

For the full announcement of the charges, click on this link.

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FWA (KY) – Kentucky companies pay $1.7M to settle fraud Medicaid claims

 
 

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The article below has been highlighted and summarized by our research team. It is provided here for member convenience as part of our Curator service.

 
 

[MM Curator Summary]: 2 labs in KY ran a lab scheme tied to court-ordered drug tests.

 
 

 
 

Clipped from: https://www.kentucky.com/news/local/crime/article275259571.html


Two Kentucky-based businesses have agreed to collectively pay about $1.7 million to resolve allegations they illegally billed Medicaid and Medicare for court-ordered drug testing.

One of the accused companies was Blue Waters Assessment and Testing Services, LLC, which is based in Lexington and provides services related to urine drug testing, including tests for individuals ordered by the Fayette County family courts as part of their cases.

The Lexington company sent the specimens to VerraLab JA, LLC, a clinical laboratory based in Louisville that does business under the name BioTap Medical, according to the U.S. Attorney’s Office. BioTap performed the urine drug tests and billed them to Kentucky Medicaid and Medicare.

The BioTap group received payments from medicaid and medicare which they were not entitled to and agreed to pay nearly $1.5 million as part of a settlement against the false claims. Blue Waters Assessment and Testing and its owner, David Waters, agreed to pay an additional $250,000 for roles in submitting the claims, according to the U.S. Attorney’s Office.

The government said billing these tests to state Medicaid and Medicare violated the False Claims Act, which prohibits fraudulent claims being submitted.

 
 

“Submitting false claims to Medicare or Medicaid wastes taxpayer dollars and undermines the integrity of those programs,” said Tamala E. Miles, special agent in charge at the Department of Health and Human Services, Office of Inspector General.

As federally-funded health insurance, Medicaid and Medicare do not pay for tests given to satisfy a court order.

Medicaid and Medicare only pay for laboratory tests used for medical diagnosis or treatment, according to the U.S. Attorney’s Office.

“In fact, Medicaid’s regulations explicitly prohibit reimbursement for laboratory tests, such as urine drug tests, that were ordered by a court,” the United States Attorney’s Office said.

“The federal Medicaid and Medicare programs are designed – and funded – to provide health care benefits to eligible individuals with a medical necessity,” Carlton S. Shier, IV, U.S. attorney for the Eastern District of Kentucky, said in a press release. “These lab tests were not medically necessary and were improperly billed to these programs.

“It is important to all of us that steps are taken to return such misapplied funds to their appropriate purpose – providing medical care.”

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MCOs (VA)- Virginia Premier Medicaid members shifting to Optima Health

 
 

MM Curator summary

The article below has been highlighted and summarized by our research team. It is provided here for member convenience as part of our Curator service.

 
 

[MM Curator Summary]: Sentara is moving around some of its covered lives. Not sure why yet, but will try to find out.

 
 

Clipped from: https://www.beckerspayer.com/payer/virginia-premier-medicaid-members-shifting-to-optima-health.html

Virginia Premier will move its 300,000 Medicaid members to Optima Health on July 1.

Both are owned by Sentara Health and collectively support nearly 750,000 Virginia Medicaid members, according to a May 10 news release from the Norfolk, Va.-based health system. 

Bringing the Virginia Premier Medicaid membership over to Optima Health will enable us to continue to provide a superior customer experience for our Medicaid membership — while also creating efficiencies that support lower costs for the state and reduced administrative burden on healthcare providers,” Sentara Health Plans President Colin Drozdowski said in the release. 

Virginia Premier Medicaid members enrolled as of June 30 will keep their same coverage and benefits but will become Optima Health members. Virginia Premier D-SNP will continue to operate under the Virginia Premier name, and there will be no changes in benefits and services, the release said.

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PROVIDERS (NC)-Medicaid expensive for free clinics

 
 

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The article below has been highlighted and summarized by our research team. It is provided here for member convenience as part of our Curator service.

 
 

[MM Curator Summary]: NC providers say Medicaid is too much of a hassle. I got 99 problems and Medicaid billing rules ain’t one of em’.

 
 

Clipped from: https://www.northcarolinahealthnews.org/2023/05/09/medicaid-is-an-expensive-proposition-for-free-clinics/

 
 

Tony Price is CEO of Moore Free and Charitable Clinic in Southern Pines, N.C. Price, who also chairs the North Carolina Association of Free and Charitable Clinics, said facilities like his would need to make major changes to accept Medicaid. || Photograph by Jaymie Baxley/North Carolina Health News (Southern Pines, N.C., May 2, 2023)

For nearly 20 years, uninsured people in the Sandhills have turned to Moore Free and Charitable Clinic for medical services.

Operating in a converted warehouse at the end of an unassuming road near Pinehurst in Moore County, the clinic provides free or low-cost care to patients with diabetes, hypertension and other chronic illnesses. Construction is underway to add a dental treatment area to the facility.

Moore Free and Charitable serves hundreds of patients, some of whom may soon become eligible for Medicaid under the expansion signed into law in March by Gov. Roy Cooper. But Tony Price, CEO of Moore Free and Charitable, said his clinic does not plan on participating in Medicaid — at least not for the time being.

“Medicaid is a complex process,” he said. “There’s a whole lot of compliance issues that we don’t have to deal with today that you do when you take Medicaid.”

One issue is billing. Unlike traditional providers, the clinic does not have a billing system in place to streamline the claims process for Medicaid. Price said Moore Free and Charitable tracks the estimated value of every service it provides, but those records are for “internal use only.”

Even if it had a billing system, the clinic would need to hire staff to prepare claims and submit them to the state. This work is time-consuming and requires a fastidious eye, according to Price. A claim could get kicked back or rejected if the person filing it accidentally enters the wrong code. (Codes signify what a patient’s diagnosis is and what care they received.)

Price chairs the North Carolina Association of Free and Charitable Clinics, an organization made up of more than 70 clinics that cater to the uninsured. The association’s members saw a combined 82,480 patients in 2021, the most recent year for which data is available.

Price’s misgivings about accepting Medicaid are shared by other members of the association, many of which lack the money and manpower needed to overhaul their clinic operations to accommodate Medicaid patients. All of the state’s free clinics rely primarily on donations and grants to stay afloat, and the facilities themselves are staffed mostly by volunteer physicians, nurses and other medical staff.

“The infrastructure will have to change in the clinics, and that’s an expensive proposition,” Price said.

Clinical contrast

April Cook, CEO of the North Carolina Association of Free and Charitable Clinics, said only eight of the organization’s members accept Medicaid. 

They mainly do so, she said, to deal with the “churn” of patients who receive Medicaid for a few months before being dropped from the program. Medicaid enrollees make up only 5 percent of the total number of patients served by the association’s member clinics.

Cook said the handful of free clinics that do take Medicaid are reimbursed at a lower rate than at community health clinics, officially known as Federally Qualified Health Centers. They also have far fewer employees. 

“Typically, an FQHC has two to three times the number of staff members as free and charitable clinics, and the biggest reason is Medicaid and Medicare,” Cook said. “It takes so many more individuals to dot all the i’s and cross the t’s when you’re dealing with these federal programs.” 

 
 

A member of Moore Free and Charitable Clinic’s staff confers with a patient in Southern Pines. Data from the N.C. Association of Free and Charitable Clinics showed that free clinics had an average of only eight full-time staff members in 2021. || Photograph by Jaymie Baxley/North Carolina Health News

While the centers and clinics both focus on underserved populations, they are not always in the same communities. Price’s county, for example, is home to FirstHealth Moore Regional Hospital but does not have a federally qualified health center listed with the N.C. Department of Health and Human Services.

“Here’s the bottom line: there’s not enough FQHCs to address all of the folks that have Medicaid,” Cook said. “So if you’re in a rural area where there’s already not an FQHC or there’s a primary care shortage, there’s not a whole lot of options for patients. 

“Medicaid doesn’t necessarily mean access, which is unfortunate.”

Filling gaps

Over 600,000 people are expected to benefit from Medicaid expansion in North Carolina, but only if they are U.S. citizens or lawfully present non-citizens who have “qualified” immigration status

Undocumented immigrants will remain ineligible for coverage, forcing an untold number of individuals to seek care through other channels. Free clinics are among the few available options for undocumented patients who have little or no income.

Cook said that while the association does not “want to condone people coming in illegally,” she believes it is “to everybody’s benefit to treat …  where you can.”

“There are people that are on both sides of the fence here, but it’s about understanding the implications of not serving someone that is undocumented,” she said, adding that undocumented individuals with easily treatable issues may turn to emergency rooms for service if they cannot be seen elsewhere. “I think part of free and charitable clinics’ mission is to help drive down health care costs and take care of people preventively before they reach a condition that requires them to be hospitalized.”

 
 

 
 

 
 

Medicaid will not be officially expanded in North Carolina until a state budget is approved. Before that happens, many North Carolinians are expected to lose their existing coverage through the unwinding of a federal provision that prevented states from removing enrollees from the program during the COVID-19 pandemic. 

This process, known as redetermination, will likely create a new coverage gap for free clinics to help fill. 

“There’s been some talk that if [the General Assembly] can get the budget passed in June then they would try to expand Medicaid by October, which would be very fast, because of the unwinding,” Cook said. “They don’t want people that have been treated to feel like they’re out in the cold. I’m here to say they won’t be out in the cold because we have 70 free and charitable clinics in North Carolina that are there ready to help lead the way.”

Still, Cook acknowledged that funding is a persistent challenge for free clinics. The association, she said, has asked lawmakers to earmark $15 million in the state’s budget for recurring appropriations that will allow the clinics to hire additional staff and provide more services to patients. The budget passed by the House of Representatives last month contains only $5.5 million in annual funding for the free clinics, and the amount in the final budget passed by the legislature is likely to be less than what the association has asked for.

“We will not benefit financially from Medicaid expansion,” Cook said. “We are hoping that the General Assembly won’t forget about us and it realizes the critical part that we play as a safety-net provider.”

Looking ahead

Cook stressed that the free clinics represented by the association are “fully in support” of Medicaid expansion.

“We’re very happy for our patients that will be eligible,” she said. “However, that being said, [expansion is] going to extend coverage to 500,000 to 600,000 uninsured in North Carolina, with a remaining 700,000 that will not qualify for Medicaid and will remain uninsured. We are primarily focused on those individuals.”

 
 

Christina Sanford is an enrollment specialist at Moore Free and Charitable Clinic in Southern Pines. Many of the state’s free clinics are bracing for an uptick in new patients as a result of Medicaid redetermination. || Photograph by Jaymie Baxley/North Carolina Health News

While none of the association’s members have immediate plans to begin accepting Medicaid, the prospect is not entirely off the table. Cook said there is a possibility that some free clinics may adjust their operations to serve enrollees who continue to lack access to traditional  providers. 

“If two years down the road we’re hearing over and over that patients that we had are suffering because they can’t find primary care for their Medicaid, then we may have to pivot,” she said.

Price, the association chair and clinic CEO in Moore County, said it is too early to tell what the future might hold for Medicaid in free clinics.

“How many patients are we apt to lose? How many might we get back from [redetermination]? How many undocumented patients do we have out there that weren’t counted in the first place?” he asked. “We’re gonna try to pull together data to better help us make a decision about how to proceed.”

Correction: A previous version of this article stated that only U.S. citizens will benefit from Medicaid expansion in North Carolina. Non-citizens who have “qualified” immigration status will also be eligible for coverage.

 
 

Republish our articles for free, online or in print, under a Creative Commons license.

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STATE NEWS (FL)- Florida will reject Medicaid coverage for immigrants

 
 

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The article below has been highlighted and summarized by our research team. It is provided here for member convenience as part of our Curator service.

 
 

[MM Curator Summary]: Florida says not to the Dem’s latest Medicaid expansion strategy. And asks for more data on how much taxpayers are paying for non-citizens…

 
 

Clipped from: https://floridapolitics.com/archives/611373-florida-will-reject-medicaid-coverage-for-immigrants/

 
 

The Biden administration is making Medicaid available for nearly 580,000 people who came to the United States as children but can’t otherwise qualify for Medicaid because of their immigration status.

But Florida won’t be taking advantage of the option that was announced in April. In fact, Gov. Ron DeSantis’ administration is doubling down on its opposition.

DeSantis made clear at a Jacksonville news conference Wednesday he has no intention of tapping into the program. He made the comments after signing SB 1718, a sweeping immigration bill that requires private employers with 25 or more employees to use the E-Verify system for new employees and essentially bans Florida counties from issuing identification cards or other documents to individuals who do not provide proof of lawful presence in the United States.

The new law also aims to understand undocumented immigrants’ health care costs better because, as the Governor noted: “You show up to an emergency room, they treat you; it doesn’t matter if you are illegal or legal.”

According to DeSantis, Florida emergency rooms provided about $340 million in care to undocumented immigrants in the state fiscal year ending July 1, 2022.

 
 

And taxpayers were on the hook for two-thirds of those costs,” DeSantis said. “The Biden administration is trying to increase those costs. They want to actually use Medicaid to cover illegal aliens, which we don’t support and won’t do in Florida. But that’s their vision in terms of what they want to do,” DeSantis said.

The Governor said he thinks the $340 million figure captures just “some” of the health care costs, saying, “We think that there’s more.”

To that end, SB 1718 requires hospitals that receive Medicaid funding to ask patients whether they are United States citizens, lawfully present in the United States, or unlawfully present in the United States.

The new law requires hospitals to submit quarterly reports to the state detailing the number of emergency department visits or admissions and how the patients responded to the question.

“The public deserves an honest accounting of how much this is costing us in terms of services, and health care is probably No. 1,” he said.

The health care provision was one of the more controversial elements of the immigration bill as opponents contended that it would dissuade undocumented immigrants from seeking health care.

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STATE NEWS (NV)- Expanded hospital tax could boost Medicaid rates, fund behavioral health services

 
 

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The article below has been highlighted and summarized by our research team. It is provided here for member convenience as part of our Curator service.

 
 

[MM Curator Summary]: CO hopes to use a new provider tax scheme to fund fixes to its abysmal BH services for vulnerable kids. The new plan would cap the “admin” vig of the magic money funds at 15% of “assessments” and then slough off the rest to help address BH needs. So, the leftovers.

 
 

Clipped from: https://thenevadaindependent.com/article/expanded-hospital-tax-could-boost-medicaid-rates-fund-behavioral-health-services

 
 

The entrance to Mountains Edge Hospital in Las Vegas on April, 19, 2019. (David Calvert/The Nevada Independent)

Nevada’s lack of state-supported services for child mental health issues has been described as a “crisis” — underscored by a federal investigation last year revealing that the state’s lack of adequate treatment and services to children and youth with behavioral health disabilities likely violated federal law.

But under a little-noticed bill that would allow private hospitals to implement an existing “provider tax,” state health officials are hoping to leverage up to $30 million in new state funds to address a lack of youth behavioral health resources. The initial funds could potentially grow to an estimated more than $100 million after the money is matched by the federal government in support of new Medicaid services and rate increases for behavioral health.

The proposed measure, SB435, would build upon an existing framework that grants private hospitals the ability to vote for a state-assessed “provider tax” of no more than 6 percent, earmarked as supplemental Medicaid payments as part of a federal dollar-matching program. The bill passed unanimously out of its first committee and has received an exemption from legislative deadlines.

The bill would also align state law with federal requirements by ensuring that tax proceeds are not solely used to offset tax payments made by the providers. Money generated could be used to fund supplemental Medicaid payments, enhance reimbursement rates and pay for state administrative costs to implement the new tax. The specifics of who receives the new payments outside of those paying the tax must be outlined in the poll issued by the state to determine whether there are enough votes to support the implementation of the tax.

One of the proponents of the measure, the Nevada Rural Hospital Partners, said the bill aims to fill the gaps in payments to providers and grants Medicaid the ability to address any unintended financial consequences that may stem from the new “tax” and Medicaid payments.

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“SB435 ensures that our small Critical Access Hospitals in Nevada won’t be unintentionally harmed by the implementation of the provider fee,” said Blayne Osborn, president of Nevada Rural Hospital Partners. “Beyond that, the bill puts forward critical funding to support behavioral health providers in Nevada, which our rural communities desperately need and our hospitals fully support.” 

Though administrators and proponents of the measure describe it as a “provider tax,” it acts more as an assessment, allowing the state to pay the private hospitals more money for Medicaid services with the caveat that a provider is not being guaranteed by the state that they will receive sufficient payments to offset taxes paid as necessary to avoid federal scrutiny.

One of the proponents is Gov. Joe Lombardo. While on the campaign trail, he promised not to raise taxes, and a spokesperson said SB435 does not undermine that vow.

“Senate Bill 435 advances an existing framework that private hospitals were authorized to seek in 2017, and critically, it does not raise taxes or require a two-thirds vote at the Legislature,” Lombardo spokesperson Elizabeth Ray wrote in an emailed statement.

Under an amendment proposed by Lombardo’s office and brought by the state Department of Health and Human Services, the measure would direct the agency to pull no more than 15 percent of what is collected from the “provider tax” for administrative costs. Any remaining money collected for administrative purposes would need to be set aside for future Medicaid expenditures aimed at supporting “behavioral health care for recipients with serious behavioral health conditions and psychiatric disorders.”

That amendment is a direct response to come into compliance with federal disabilities law after the publication of the October report from the Department of Justice finding that Nevada does not provide its children with behavioral health disabilities adequate community-based services and unnecessarily institutionalizes children, sometimes out of state. 

The report indicated that more than 1,700 Nevada children were admitted to a hospital for psychiatric care in 2020, and that same year, more than 480 children received services in residential treatment facilities — places the state reported where children remain an average of nine to 12 months, sometimes longer.

Data gathered as part of the reporting process revealed that most children in residential care did not receive state behavioral supportive services, and less than a fifth of the children who were hospitalized for psychiatric care in 2020 received wraparound care coordination from the state. Findings also showed the state relies on residential treatment facilities in and outside of Nevada to treat children with behavioral health disabilities.

Nevada has a history of leaving mental and behavioral health behind or on a bus to another state,” Children’s Advocacy Alliance lobbyist Lea Case said during public testimony. “We support this first step while recognizing that there will still be a need for increased and sustainable funding to address the shortcomings noted in the DOJ report.”

Lombardo’s proposed budget shows the “provider tax” is estimated to bring in more than $388 million annually in new state revenue, with 15 percent allocated for administrative costs and any remaining funding within that percentage going toward behavioral and psychiatric services. The state estimates that this new state revenue could result in about $850 million to $1 billion in total for new supplemental Medicaid payments to private hospitals in Nevada. 

Director of Health and Human Services Richard Whitley said he estimates that 15 percent of the proposed “provider tax” would generate about $30 million for behavioral health, specifically, which can be matched with dollars from the federal government. The match could more than double or triple the money for behavioral health services, he said, potentially generating more than $100 million for behavioral health care in Medicaid.

“This will benefit both adults and children and reduce impact on the hospitals and the crisis services that are currently being provided in our emergency rooms,” Whitley said during a mid-April hearing on the measure.

 
 

Nevada Department of Health and Human Services Director Richard Whitley speaking with Assemblywoman Sarah Peters (D-Reno) in the Legislature in Carson City on February 8, 2023. (David Calvert/The Nevada Independent)

Nevada Medicaid Administrator Stacie Weeks said the state hopes to implement the tax by January 2024 and estimated it would support about 55 private hospitals within Nevada.

“It will create new supplemental payments, inpatient and outpatient, in addition to state-directed payments in our managed care program,” Weeks said during the hearing.

Though the budget includes estimations and projections related to the “provider tax,” a more detailed model of the finances and program, as well as the total funding generated, is expected to be available in June if the bill passes. Representatives of the Nevada Psychiatric Association, legal services providers, Clark County and the Nevada Republican Club testified in support of the proposed bill at its hearing last month.

Background and a future vote

The proposed bill takes advantage of a law passed under Republican Gov. Brian Sandoval during the 2017 legislative session that allows for a provider fee or tax program, as long as it is developed in collaboration with a majority of providers from medical facilities such as doctors’ offices, hospitals or other licensed medical offices, or an agency providing personal care assistance services. 

As part of the 2017 law, the provider tax program would be developed at the request of a group of providers and could proceed only with the approval of a supermajority vote of the providers (67 percent) within the group. Once that happens, the state division of Health Care Financing and Policy is given regulatory authority to assess and run a provider fee or tax program.

Whitley said the state’s low Medicaid rates have contributed to an overall provider shortage, and the “provider tax” will help address the shortage by ultimately bringing in more Medicaid dollars. He and other presenters said that the state will treat the proposed provider tax as a contract with the hospitals and, when voting, all hospitals will receive every detail related to the tax, including how the funding will be used and the tax percentage.

“The hospitals have to agree to participate in this,” Whitley said, adding that the provider tax under the new bill could also help public rural hospitals by opening the door for supplemental Medicaid payments to those hospitals in the event that something changes within the Medicaid structure as a result of the new private hospital tax.

The Nevada Hospital Association brought forward the request for the provider tax, the outlines of which were detailed in a public workshop held earlier this year by the Division of Health Care Financing and Policy.

A spokesperson for the association said all Nevada health care providers, including hospitals, are underfunded by Medicaid. In the past 20 years, she said hospital Medicaid rates have only increased 5 percent overall though hospital costs have increased approximately 50 percent, and additional funding is needed to preserve and sustain Medicaid services.

“We support the administration’s efforts to bring more funding through Medicaid provider fee programs,” said spokesperson Jeanne Corbit. “And we are working with the administration and lawmakers to craft legislation that sustains and improves access to hospital services.”

Posted on

STATE NEWS (CO)- Parents still battling Medicaid over in-home nursing care for kids

 
 

MM Curator summary

The article below has been highlighted and summarized by our research team. It is provided here for member convenience as part of our Curator service.

 
 

[MM Curator Summary]: CO’s resuming of PA rules for medically complex kids support is quite disruptive.

 
 

 
 

Clipped from: https://coloradosun.com/2023/05/10/medicaid-in-home-nursing-care-children/

Parents of children with disabilities so severe they say they need round-the-clock care to live at home are growing increasingly frustrated with the state Medicaid division as confusion over policy changes has dragged on for months. 

Families of children who need breathing and feeding tubes to survive say they’re again receiving denials for in-home nursing services after the latest freeze on the prior-authorization process was lifted. 

The law hasn’t changed. The criteria hasn’t changed,” said Jack Robinson, an attorney representing 20-25 families who have appealed the denials they received from the Medicaid division. “The only basis to reduce a child’s hours is if they got better. In none of the situations that I’m dealing with have they gotten better.” 

Department officials say only a fraction of the 948 people who’ve asked for private-duty nursing services have been denied the benefit or had their hours cut. And families are still receiving services while they appeal.

The confusion goes back to three years ago, when the Colorado Department of Health Care Policy and Financing — which includes Medicaid — put a freeze on the prior-authorization process for in-home nursing care for children and kept the freeze throughout the coronavirus pandemic. That meant families were receiving services based on physicians’ orders but without having the state contractor that processes claims making a determination about whether they were medically necessary

In the meantime, Colorado switched to a new contractor. Kepro, a national company, handles prior-authorization requests submitted by agencies that supply private-duty nurses.

After the pandemic shutdown ended and the prior-authorization process resumed in November 2021, so many families were denied services or had their children’s hours reduced that the state department again put the prior authorization process on a freeze. Some families told The Colorado Sun they were in panic mode for months until the department initiated the emergency freeze last October. 

But the prior-authorization process is back on again, and denial and reduction letters began hitting mailboxes in March and April, setting off a new wave of frustration.

Families upset over recent denials

Pam Rogers said services were cut by 14 hours per week for her 9-year-old daughter who uses a wheelchair, cannot communicate and survives with a gastronomy tube for nutrition. Rogers adopted the girl so she didn’t have to spend her life in a hospital. 

“She has comorbidities in literally every system of her body,” Rogers said. “If someone is not assessing her comfort, pain, red marks on her side. … all of these little things can turn into very big expensive things and potentially fatal things.” 

In addition to the girl, Rogers has a biological daughter who choked and suffered a brain injury at age 2. She also adopted four other medically fragile children from foster care, including a baby who was living in a hospital.

The Aurora mom fears the ongoing denials for families like hers will lead to fewer options for medically fragile children. 

“They are making it incredibly hard on a daily basis to care for them,” Rogers said. “They are adding 100% more stress than is ever needed. Every single time we feel like we resolve one thing, they try to break another thing. They just keep placing more barriers and more barriers to the point I don’t know what the future holds.” 

Robinson said he is representing several families who have been denied or partially denied nursing services and are appealing to an administrative law judge. “Medicaid benefit is a property right,” the attorney said. “They are in essence taking away that property right without a change in circumstances.” 

Robinson said a few of the children, who are only 2 or 3 years old, did not previously have to go through a prior authorization because of the freeze on that process. But several of his clients were approved in the past and have now been denied the same level of in-home services. 

The parents, some of whom have set up licensed medical foster homes and adopted children from the foster care system who were abandoned in hospitals, believed they would receive services for the rest of their lives, Robinson said. 

“The whole idea is that we are trying to set up a home setting that would provide these incredibly medically fragile, complicated kids with nursing services,” he said. “Now all of a sudden the whole landscape changes. We can’t send the child back to the hospital.” 

Katerina Evers and her husband, both nurses, have adopted eight medically fragile children. Two were dropped from 24-hour nursing services to zero hours, the couple learned at the end of April. 


“It’s like they are playing with people’s lives.”

— Katerina Evers, mother of eight medically fragile children

One of those is a 16-year-old girl who has a g-tube, oxygen, a wheelchair and behavioral issues because of previous abuse. She had been approved for round-the-clock services for the past 11 years, since she was adopted by the Evers from an abusive home, Evers said. 

The other is a 9-year-old girl whom the Evers adopted as an infant. The child’s face and neck were not formed correctly and she needs an artificial airway to breath and a tube to eat because of a cleft palate. Evers said she received a letter from the state contractor saying the girl’s services were not medically necessary because she is “in a state of transition.”

“What transition would that be?” Evers asked. “She has been like this since infancy. The letters make no sense.” 

She wonders why the Medicaid division can’t grandfather in the families who already had 24-hour services and enact its policy changes in the future.

“It’s like they are playing with people’s lives,” she said. 

About 200 denials issued since November 2021

From November 2021 to last month, 948 people applied for private-duty nursing services. In 86.5% of cases, families were fully approved for services, according to Medicaid officials.

But there were 71 full denials and 134 partial denials issued during that time. 

Denials happen because the services aren’t deemed medically necessary or for technical reasons, meaning that more information about their needs is required. 

Since last fall, Medicaid officials have provided additional training about the prior-authorization process to the 30 or so agencies in Colorado that place private-duty nurses in homes. The state also worked with its contractor to write clearer denial letters that provide an explanation and describe a family’s right to appeal. 

In addition, the Medicaid division met with disability advocacy groups to hear their concerns, and reached out individually to families who had complained publicly about denials. 

“While you may have a few voices that are really loud, we really wanted to understand the scope of the over 900 people that receive this benefit,” said Bonnie Silva, the director of the Office of Community Living at the state health care department. “Let’s make sure we understand all of the problems.”

At the same time, the Department of Health Care Policy and Financing is reviewing the rules around private-duty nursing, which have not been updated for several years. There is no rule, for example, dictating how many medically fragile children one nurse can care for at a time. The department is holding a series of public meetings and plans to present proposed rules to its rule-making medical services board in early 2024. 


We’ve worked hard to err on the side of the member, err on the side of how do we be really cautious and make sure that our policies don’t result in harm.

— Bonnie Silva, Office of Community Living

The private-duty nursing program cost $113 million in 2022.

Silva said that any child who in previous years had been approved for services through the prior-authorization process but had their services deemed “not medically necessary” in the latest process was automatically approved by the department “while we take more time to look at those.” 

Some families, however, told The Sun that they are panicked because they believe they have been denied or might be denied after such a review. 

It’s not the goal of Medicaid for anyone to lose services, Silva said. 

“We’ve worked hard to err on the side of the member, err on the side of how do we be really cautious and make sure that our policies don’t result in harm, while also having some fidelity to the responsibility that we have that is extraordinary around the funding that we receive,” she said.