Hall Render Meets with Stark Staff on Stark Law Reform
Hall Render attorneys Gregg Wallander, John Williams and Andrew Coats met with several congressional staff members this week to discuss changes to the penalty provisions of the Stark Law. Those meetings included discussions with staff from the Senate Finance Committee, the House Ways and Means Health Subcommittee and the longtime Chief of Staff for the law’s author, Rep. Pete Stark (D-CA). The Hall Render attorneys were on Capitol Hill to raise awareness about the excessive penalties hospitals face for unintentional technical violations of the law, such as the inadvertent failure to sign an otherwise valid contract. While the lawmaker’s aides all indicated the chance for broad Stark Law reform before the end of the year is slim, all agreed it will be on the table when the next congress convenes in January. Hall Render is in the early stages of forming a coalition of hospitals that will work with members of Congress to correct the unintended effects of the Stark Law’s penalty provisions.
HHS Releases Stage 2 Electronic Health Records Final Rule
On August 23, HHS released a final rule defining “meaningful use” of electronic health records (“EHRs”) for Stage 2 of a payment bonus program that would go into effect in 2014. The final rule defines meaningful use for the second of a three-stage process intended to incentivize the use of EHRs among hospitals and providers.
Under the Health Information Technology for Economic and Clinical Health (“HITECH”) Act, eligible health care professionals (e.g., physicians or hospitals) can qualify for Medicare and Medicaid incentive payments when they adopt certified EHR technology and use it to demonstrate “meaningful use” of that technology by achieving objectives set by CMS. The EHR incentive program is divided into three stages of meaningful use. The Stage 2 rule calls for meeting 16 core objectives (for hospitals) as well as three of the six discretionary objectives. Stage 2 is intended to focus on providing patients with electronic access to health records as well as increasing digital communication between providers for improved coordinated care.
In 2015, the payment incentive program ends for hospitals, and the penalty program begins. Starting in 2015, hospitals would begin seeing lower Medicare and Medicaid reimbursements if they are not “meaningfully using” certified EHRs. Hospitals will have to meet the “meaningful use” attestation requirement by July 1, 2014 in order for their 2015 Medicare reimbursements not to be reduced.
HHS Announces Delay of the ICD-10 Compliance Date
On August 24, HHS released the final rule on ICD-10 billing codes. The final rule makes it official that the new International Classification of Diseases, 10th Edition billing codes (ICD-10) will be delayed a year, from October 1, 2013 to October 1, 2014. The administration first announced the one-year delay in the proposed rule in April 2012. The delay came in response to provider groups expressing strong concern about their ability to meet the October 1, 2013 compliance date and claims payment issues that could ensue without a delay.
In the Final rule, CMS stated the year delay gives covered health care providers and other covered entities more time to prepare and fully test their systems to ensure a coordinated transition. CMS also stated in the rule that, of all of the options, the most support from those who made comment was for the one-year delay of ICD-10. CMS said it will continue to work with the industry to provide education on the various ICD-10 implementation issues.
This regulation becomes effective November 5, 2012.
President Signs Sequestration Transparency Act into Law
On August 7, President Obama signed into law the Sequestration Transparency Act, requiring the administration to detail specifics regarding the impact a $1.2 trillion cut will have on domestic and defense programs if Congress cannot agree on another deficit-reduction plan by January 2, 2013. The Senate passed the bill unanimously, and it cleared the House 414-2. Beyond detailing the areas of spending reductions, this legislation asks for a list of functions exempt from cuts and directs heads of federal agencies to consult with Congressional appropriations committees to provide information. The President has one month to deliver a report detailing Sustainable Growth Rate physician pay reductions of 27% and across-the-board Medicare provider cuts of 2%. The report will reach Congress on September 7 and the Senate two days later.
CBO Releases Updated Economic Forecasts for Medicare
On August 22, the Congressional Budget Office (“CBO”) released its updated economic forecasts, which included ten-year projections on future Medicare and Medicaid spending. In the health care section, the report stated Medicare spending will grow from 3.7% of the Gross Domestic Product (“GDP”) in 2013 to 4.3% in 2022. The report projected the three largest entitlement programs (Medicare, Medicaid and Social Security) will grow to 12.2% of the GDP in 2022, equal to approximately 55% of all federal spending. The report factored in this summer’s Supreme Court decision and provided alternative scenarios depending on whether Congress cancels or allows the January 2, 2013 sequester cuts to go forward.
For more information, please contact John F. Williams, III at 317.977.1462 or jwilliams@hallrender.com.
Please visit the Hall Render Blog at http://blogs.hallrender.com/ for more information on topics related to health care law.
