Issue #162

Key Updates:

CMS issued a final rule on November 15 requiring nursing homes to disclose their ownership structure to federal authorities. The final rule focuses on private equity and real estate investment trust (REIT) involvement in the private sector (Modern Healthcare, November 15 and November 20).

President Biden signed a temporary spending bill on November 16, avoiding a potential government shutdown. The bill maintains current funding levels for about two months to allow for negotiations for a long-term package (Associated Press, November 17).

On November 16, HHS introduced plans to create an advisory committee focused on the effects of long COVID. The idea to establish the committee was first mentioned in the August 2022 National Research Action Plan on Long COVID (Inside Health Policy, November 16).

From November 15 to November 21, CMS approved 21 SPAs and has two 1115 waiver amendments out for public comment.

Federal Updates

Featured Content

Final Rule Requires Nursing Facilities to Disclose Ownership Information

  • CMS issued a final rule on November 15 requiring nursing homes to disclose their ownership structure to federal authorities. The regulation aims to bring transparency to an industry that frequently has complex ownership setups. The final rule focuses on private equity and real estate investment trust (REIT) involvement in the private sector. Studies have indicated that private equity and REIT ownership of nursing homes reduces staffing levels and quality of care. With the final rule, facilities that accept Medicare and/or Medicaid must reveal their owners, trustees, and service-providing companies that assist with administrative, financial, and clinical services. Consumer groups such as The American Health Care Association/National Center for Assisted Living were supportive of the final rule. The final rule takes effect 60 days following publication in the Federal Register (anticipated to occur on November 24) and ownership disclosures are due within a year of that date (Modern Healthcare, November 15 and November 20).

Biden Signs Temporary Spending Measure

  • President Biden signed a temporary spending bill on November 16, avoiding a potential government shutdown. The spending bill maintains current funding levels for about two months to allow for negotiations for a long-term package and creates two deadlines for passing the full-year appropriations. The first deadline is set at January 19 for some federal agencies and the second deadline is February 2 for other federal agencies. Notably, the spending bill does not include the White House’s $106 billion request for wartime aid to Ukraine and Israel and also does not include humanitarian funding for Palestinians or other supplemental requests. House Speaker Mike Johnson has stated that he will not support any additional stopgap funding and anticipates significant budget negotiations with the Senate in the new year (Associated Press, November 17).

Advisory Committee on Long COVID

  • On November 16, HHS introduced plans to create an advisory committee focused on the effects of long COVID. The idea to establish the committee was first mentioned in the August 2022 National Research Action Plan on Long COVID. Individuals diagnosed with long COVID and multidisciplinary experts will serve on the panel that is designed to inform action on long COVID with a focus on health equity. The committee comes after $45 million in grants for long COVID clinics throughout the country was announced so access to long COVID care can be coordinated for individuals in underserved areas. HHS also established the Office of Long COVID Research and Practice while the National Institutes of Health has asked individuals to participate in clinical studies to examine potential treatments (Inside Health Policy, November 16).

Federal Regulation

  • On November 15, HHS released a Notice of Benefit and Payment Parameters for 2025 with the proposed rule scheduled to be published in the Federal Register on November 24. In the proposed rule, CMS addresses standards for issuers and Marketplaces, as well as proposed requirements for agents, brokers, web-brokers, direct enrollment entities, and assisters that help Marketplace consumers. It also advances the Biden administration’s goal of promoting health equity and improves upon the Affordable Care Act (ACA) objectives by expanding access to quality, affordable health coverage and care, streamlining choice and enhancing the plan selection process, simplifying the enrollment process, increasing standards for consumer protections, clarifying the authority to access certain data through Medicaid, CHIP, and Marketplace Hub services, and enhancing markets (CMS, November 15).

Federal Studies and Reports

  • A study completed by the Employee Benefits Research Institute (EBRI) found that regular visits to a primary care physician between 2013 and 2021 were in significant decline but resources allocated towards primary care were significantly up between 2010 (11.7%) and 2020 (15.1%). Researchers used claims data and insurance information in conducting the study. The study also found that a larger portion of primary care services are being handled by non-physician health care providers. Additionally, EBRI researchers found that younger enrollees are the least likely to access care at general medicine and internal medicine practices, while middle-aged employees are shifting to nurse practitioners, with all age groups moving toward seeking care from physician assistants (Health Payer Specialist, November 20).
State Updates

Waivers

  • Section 1115
    • Arizona
      • On November 15, 2023, Arizona requested to amend its demonstration to raise the CHIP eligibility threshold from 200% FPL to 225% FPL. This amendment is titled, “Arizona KidsCare Expansion.” The federal public comment period is open from November 20, 2023, through December 20, 2023. Public comments can be submitted here.
    • North Carolina
      • On October 31, 2023, North Carolina submitted an application to extend its section 1115(a) demonstration titled “North Carolina Medicaid Reform Demonstration.” The state is seeking to renew its demonstration for an additional five year period. Through this renewal request, North Carolina is requesting for extension of the ongoing managed care authorities, an expansion of and refinements to the Health Opportunities Pilot Program, and authority for new initiatives in line with state goals. The new initiatives will streamline Medicaid enrollment for children and youth; improve care for justice-involved individuals; and invest in behavioral health. The federal public comment period is open from November 20, 2023 through December 20, 2023. Public comments can be submitted here.

SPAs

  • Payment SPAs
    • Alaska (AK-23-0009, effective July 1, 2023): Updates the data and fee schedules for nine different services.
    • California (CA-23-0020, effective July 1, 2023): Authorizes supplemental add-on payments to the fee schedule rates for eligible ground emergency medical transportation provided July 1, 2023 through June 30, 2024.
    • Colorado (CO-23-0029, effective July 1, 2023): Updates the payment amount for the University of Colorado School of Medicine Supplemental Payment for Physician and Professional Services at Qualifying Colorado State-Owned or Operated Professional Services Practice.
    • Colorado (CO-23-0037, effective July 1, 2023): Adds a new supplemental payment for Class I nursing facilities with disproportionately high Medicaid utilization or that are geographically critical to ensuring access to care.
    • Kentucky (KY-23-0024, effective September 1, 2023): Increases the Psychiatric Residential Treatment Facility (PRFT) rates to $500 per day for Level I and $600 per day for Level II.
    • Massachusetts (MA-23-0008, effective January 1, 2023): Updates the coverage and payment methodologies for substance use disorder clinic services.
    • Michigan (MI-23-0023, effective October 1, 2023): Updates rates for Physician Services and Physical Therapy Services. Additionally, the plan adds Cochlear Implant Services.
    • Michigan (MI-23-0026, effective October 1, 2023): Increases the reimbursement to Level I and Level II designated trauma facilities.
    • Mississippi (MI-23-0007, effective July 1, 2023): Removes the rate freeze and increases the Mississippi Conversion Factor by 5%.
    • Nevada (NV-23-0022, effective January 1, 2024): Updates the payment methodology for home health agency services and private duty nursing services by providing for a 15% rate increase.
    • New Hampshire (NH-23-0038, effective July 1, 2023): Establishes payment for Donor Human Breast Milk.
    • New Jersey (NJ-23-0017, effective July 1, 2023): Updates the fee schedules for Adult and Pediatric Medical Day Care Services.
    • North Carolina (NC-23-0024, effective July 1, 2023): Increases the rates for maternal health services offered under the Other Licensed Practitioner benefit.
    • North Carolina (NC-23-0027, effective July 1, 2023): Updates the Medicaid Private Duty Nursing (PDN) rates.
    • Oregon (OR-23-0030, effective July 1, 2023): Increases the reimbursement rates due to a cost of living adjustment (COLA) for 1915(k) plan services.
    • Pennsylvania (PA-23-0013, effective September 24, 2023): Continues funding of inpatient disproportionate share hospital (DSH), outpatient supplemental, and direct medical education payments.
    • Rhode Island (RI-23-0009, effective July 21, 2023): Implements a 7% rate increase for Rehabilitative services offered in community-based group homes for children and youth with intellectual/developmental disabilities.
  • Services SPAs
    • Alabama (AL-23-0009, effective October 1, 2023): Allows community-based mobile crisis services to be offered throughout the state. These services will be provided by connecting eligible individuals in crisis to a behavioral health provider 24 hours per day, 365 days per year.
    • New Hampshire (NH-23-0036, effective July 1, 2023): Provides nicotine cessation counseling services to all New Hampshire Medicaid beneficiaries.
    • North Carolina (NC-23-0031, effective December 1, 2023): Includes the new adult group in Community Care of North Carolina (CCNC) primary care case management entity (PCCMe) program eligibility.
    • North Carolina (NC-23-0032, effective December 1, 2023): Includes the new adult group in Eastern Band of Cherokee Indians (EBCI) Triable Option primary care case management entity (PCCMe) program eligibility.

News

  • A provision in the federal spending bill approved last year ensures all individuals 18 and under who are Medicaid or CHIP beneficiaries will be covered continuously starting January 1, 2024. Missouri has been among the states that does not offer yearlong coverage. However, starting January 2024, those enrolled in Missouri’s Medicaid or CHIP programs will not be removed for 12 months. This change comes as the state is going through its redetermination process, and according to the Kaiser Family Foundation (KFF), Missouri has removed nearly 110,000 people from the rolls, close to half of which are children. However, the 12-month coverage will apply to those who enroll after January 1, but those who are determined to be ineligible or who the state cannot reach during the Medicaid review process will still be taken off coverage (KSMU, November 20).
  • Pennsylvania is in the process of restoring Medicaid coverage for 105,000 residents who were terminated for procedural reasons during the unwinding period. CMS notified several states, including Pennsylvania, of a procedural error in ex parte eligibility determinations, in which the state was determining eligibility at the household level and not the individual level. This eligibility determination method disproportionately impacted children, who have higher income thresholds for eligibility. Pennsylvania is providing retroactive coverage to the date when the individual or family lost Medicaid coverage. From April through August the state disenrolled 119,894 people for procedural reasons and another 143,310 due to no longer qualifying for the program (MSN, November 17).
  • Pennsylvania Governor Josh Shapiro has announced that all commercial insurers in the state will be required to cover autism benefits starting January 1, 2024. In support of mandating such coverage for autism benefits, the governor cites to the Mental Health Parity Laws, which requires coverage for mental health to be as accessible as coverage for other physical conditions. Though the laws have been in effect since 2008, Governor Shapiro’s administration has been more heavily involved in their enforcement than prior administrations (WDIY, November 8).
  • Effective October 1, 2023, Kentucky received federal approval to become the first state to implement continuous coverage for 12 months for children in the state without having to complete the renewal process. The increased flexibility will last through the entire unwinding period, ending in April 2024. This allows the state to delay the unwinding process for children 18 and under, keeping more than 600,000 children covered by Medicaid and K-CHIP. Kentucky plans to allocate its resources to focus on contacting adult Medicaid members going through the redetermination process (WUKY, November 16).
  • Iowa has awarded contracts to two dental providers, Delta Dental of Iowa and DentaQuest USA Insurance Company, to provide dental services to individuals enrolled in Iowa’s Medicaid and Well Kids (Hawki) programs. The contract will begin on July 1, 2024, and serve more than 825,000 individuals (Yahoo, November 14).
Private Sector Updates

News

  • As healthcare struggles with one of the most challenging years for cybersecurity on record, health systems executives are making data security solutions a budget priority. Guidehouse, a consulting firm, surveyed health system CEOs and chief financial officers to determine the top three IT investment priorities in 2024. The five main takeaways from the survey of 144 executives are as follows:
    • Prioritizing cybersecurity upgrades such as vulnerability management, data security, and threat detection software.
    • Spurred investment due to more IT systems to attack and more to defend.
    • AI indirectly plays a role in budgets as better data security systems will only become more critical as health systems implement AI.
    • Despite tight margins, IT budgets are increasing overall.
    • IT is not exempt from a larger effort across health systems to reduce costs and those efforts to cut costs overall will persist (Modern Healthcare, November 20).
Sellers Dorsey Updates
  • Senior Vice President of Sellers Dorsey, Gary Jessee, has led the Firm’s National Medicaid Consulting Practice since 2017. Leveraging his extensive experience as a former Medicaid Director, Gary has facilitated tremendous growth for the Firm through business development and overseeing successful client engagements. Learn more about Gary’s expertise in this engaging Q & A. Click the link here to explore!


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