CMS to Delay 2014 Pay Rules
On October 23, CMS issued a notice saying four 2014 Medicare payment rules will be delayed. In a memo to providers, Robert Fritter, director of CMS’s Division of Provider Relations and Outreach, said that CMS intends to issue the final rules on or before November 27, 2013, to be effective on January 1, 2014. The impacted regulations, which were due to be released by November 1, include:
- Medicare Program; End-Stage Renal Disease PPS, Quality Incentive Program and Durable Medical Equipment, Prosthetics, Orthotics and Supplies (CMS-1526-F);
- CY 2014 Changes to the Hospital Outpatient PPS and Ambulatory Surgical Center Payment System (CMS-1601-FC);
- CY 2014 Home Health PPS Final Rule (CMS-1450-F); and
- Revisions to Payment Policies under the Physician Fee Schedule and Other Revisions to Part B for CY 2014 Final Rule with Comment Period (CMS-1600-FC).
CBO Lowers Savings Estimate on Medicare Eligibility Age
On October 24, the Congressional Budget Office (“CBO”) lowered its estimate of the savings that would result if lawmakers were to raise the Medicare eligibility age from 65 to 67. The revised estimate shows the program would save $19 billion between 2016 and 2023. In January, the agency estimated that raising the eligibility age would save $113 billion over a 10-year period. The agency’s budget experts said they revised the estimate because many people continue to work beyond age 65 and only use Medicare as a secondary payer while still on employer-sponsored coverage.
Raising the Medicare eligibility age has been on the bargaining table in recent congressional budget negotiations. Democrats on Capitol Hill and the Obama Administration have been unified in their resistance to Republican efforts to raise the eligibility age to 67. This latest CBO estimate should bolster their position in the upcoming rounds of budget negotiations.
RAND Launches Research Initiative to Study 340B Program
This week, RAND Corp., a nonprofit research organization, announced it is launching a new research initiative to provide a nonpartisan analysis of the impact and future of the 340B drug discount program. The 340B program requires drug manufacturers to provide outpatient drugs at reduced prices to safety net entities that provide a disproportionate share of outpatient care to low-income and uninsured individuals.
RAND Corp. said it hopes the research shows how the Affordable Care Act (“ACA”) will affect the 340B program, through both direct change and indirect effects such as Medicaid expansion. The research also hopes to provide a response when the Health Resources and Services Administration proposes changes to 340B program regulations.
Bills Introduced This Week
H.R. 3306: Rep. Gregg Harper (R-MS) introduced legislation expanding Medicare coverage of telemedicine. The bill would seek to adjust Medicare home health payments to account for remote patient monitoring and expand coverage to all critical access and sole community hospitals.
H.R. 3320: Rep. Larry Bucshon (R-IN) introduced legislation that seeks to ensure appropriate coverage of ventricular assist devices under the Medicare program under title XVIII of the Social Security Act. A copy of the bill is not yet available.
Next Week in Washington
The bicameral budget conference committee that was created out of the deal to re-open the federal government will hold its first meeting on October 30. The 29-member panel faces a December 13, 2013 deadline to produce a report of budget recommendations that could include billions of dollars in new cuts to the Medicare program. However, any recommendations reached by the panel would have to be approved by both the House and Senate.
HHS and CMS officials will be busy traveling to Capitol Hill next week. On October 30, HHS Secretary Sebelius is scheduled to testify before the House Energy and Commerce Committee to answer questions about health exchange implementation. On October 28, the Ways and Means Committee will hold a hearing where CMS Administrator Marilyn Tavenner is scheduled to testify on ACA implementation.
For more information, please contact John F. Williams, III at 317-977-1462 or jwilliams@hallrender.com.
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