Posts Tagged ‘CMS’

Government Explores Homecare Option

We have exciting news about a new demonstration project the government is doing to evaluate the benefits of home-based care! The new Acting Administrator for the Centers for Medicare & Medicaid Services (CMS), Marilyn Tavenner, has a medical background where she has seen first-hand the benefits of homecare.  She is spearheading a 3-year project, called Independence at Home, where CMS can explore how timely in-home primary care can “prevent such (emergency department) visits and inpatient hospitalizations by bringing clinical expertise and mobile technology into the home when clinical instability is first developing”.

Homecare Advocate Post: Government Explores Homecare Option

As such, CMS is looking to “assess the effects of timely, in-home primary care on health costs, quality of care, and rates of preventable hospitalizations, hospital readmissions, and (emergency department) visits.”  Up to 10,000 Medicare beneficiaries will be able to receive their primary care in-home through this demonstration project.

This project will focus on Medicare’s frailest and sickest beneficiaries who are at greatest risk of complications due to a lack of access to routine primary care.  These Medicare patients, who represent about 5-8% of all Medicare beneficiaries, consume approximately 50% of all Medicare health costs. The demonstration project goal will be to provide them with “timely and appropriate care” to help address issues as soon as they begin developing, keeping them healthier and at home where they prefer to be.  According to CMS, participating beneficiaries will benefit through increased access to care and improved patient satisfaction.

For a Medicare patient to qualify for Independence at Home Demonstration, he/she must have the following criteria:

  • Entitled to receive Part A and enrolled to receive Part B of Medicare benefits (not Part C or in PACE)
  • Have 2 or more chronic conditions (medical conditions that last more than one year, limit what one can do, and requires ongoing medical monitoring)
  • Have 2 or more functional impairments that require human assistance to perform activities of daily living (bathing, dressing, transferring, walking, toileting, or eating).
  • Have previously had a hospitalization or use of rehab or post-acute care 12 months prior to starting the program.

If your medical provider chooses to participate in Independence at Home, you will be notified by them prior to the implementation of the project.  Voluntary beneficiary participation is automatic if you elect to have home services by a participating provider.  What a great opportunity to benefit from an expanded homecare program and receive all of your needed medical services from the convenience and comfort of home.  Should you need to be admitted to the hospital or visit the emergency room, your participating provider will contact you to check out how you’re doing and then within 48 hours of being discharged to establish a follow-up plan of care.

This program offers a payment incentive to participating medical providers if they successfully meet certain quality measures, have 200 or more eligible Medicare patients, and comply with eligibility requirements.  For example, the practice must make in-home primary care visits and use electronic health records, remote monitoring, and mobile diagnostic technology.  They will be available 24/7 to implement the individualized care plans for participating patients and will comply with all state and federal privacy laws.  50 entities will be selected for this program, and once enrolled, they will remain in the program for the duration of the 3-year demonstration project.

Study after study show the benefits of homecare, including faster healing times, reduced readmissions, and higher patient satisfaction.  We’re optimistic about the Independence at Home Demonstration and the credibility it will bring to homecare as a viable alternative to our current methods for providing health care.   Click here to learn more about the Independence at Home Demonstration and to read CMS’ press release.

In the words of Acting Administrator Marilyn Tavenner , “This program gives new life to the old practices of house calls, but with 21st Century technology and a team approach.  In my days as a practicing nurse, I saw many patients whose health improved when they were happier with their living conditions.  When a critically-ill patient can remain in familiar surroundings, the benefits are many: the person retains greater control over their daily lives, families and caregiver report greater satisfaction with the care, and unnecessary hospitalizations are avoided.”

::AWP::

Controversy Heats Over Auction Program

Homecare Advocate has been covering issues related to the controversial bidding program that will detrimentally affect seniors and destroy the homecare equipment supplier network throughout our country.  Today, The Tennessean published an article highlighting concerns from the supplier community on their ability to withstand the low-ball bid pricing that occurs in this contentious program. 244 economists have weighed in on this program, predicting system-wide failure and unsustainable pricing that is manipulated by the government.  End result?  Bad policy for seniors and for the thousands of mom-and-pop homecare equipment supply companies throughout the country.

Jesse Schwartz, an economics professor at Kennesaw State University, was interviewed by The Tennessean.  He explains that the program is ill-designed by encouraging low-ball bids that companies are not bound to.  “That’s a big problem because Medicare might not be able to meet demand because there won’t be enough suppliers.”  Schwartz joined hundreds of his esteemed colleagues in June writing a letter to President Barack Obama strongly warning about the flaws in the bid program and the serious harm it will bring.  In the letter to the President, the economics experts implore the White House Administration to bring effective reform and to abandon the flawed principles of the current program. “Indeed, the current program is the antithesis of science and contradicts all that is known about proper market design.”

Many homecare equipment companies agree with these economists.  Lambert’s owner, Randy Wolfe, was interviewed by The Tennessean and told the reporter, “I don’t mind being in a program where products are competitively bid or auctioned; we just don’t want to have to auction off our companies.”  And that is exactly what the current program will do.  Current estimates show that 42% of non-contracted companies will go out of business with over 80,000 people losing their jobs by 2014. 

To lose a bid is the kiss of death for many companies, but several companies in this first round of 9 areas have gone out of business even when they WIN contracts. Meet Rob Brant, former co-owner and president of City Medical Services in Miami, Florida.  His company aggressively bid and won the contract to supply oxygen to Medicare beneficiaries in the Miami metro-area.  Though he also bid on the other product categories within his normal scope of business, he did not win anything else.  He laid off half of his staff and reduced the store size, but even with drastic measures his company still lost $25,000/month as a “bid winner”.  Operating at an unsustainable rate, he had to make the decision to close his business.  Rob’s story is hauntingly familiar as other companies risked and lost everything to participate in the Competitive Bidding Program.

Here is Congressman Heath Schuler speaking in with the Subcommittee on Small Business about the disastrous Competitive Bidding program back in 2009.

Years later, the Centers for Medicare & Medicaid Services have failed to address these very issues.  Auction expert Jesse Schwartz stands alongside his esteemed colleagues in pushing for complete reform of this egregious program, and patient advocacy groups across the country are fighting to repeal it.

Unless swift action is taken, the significant majority of seniors in the United States will be affected by the auction program’s second round rollout, due to take effect in 2013.  The Tennessean reports that all four major cities in Tennessee will be included, making Tennessee disproportionally targeted for the second round (with only large states like California and Ohio having more congressionally bid areas).  Call your representatives and let them know that you do not want this program coming to your town, taking away jobs, putting small businesses out of business, and harming Medicare beneficiaries.

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