Home Health & Hospice Week

Industry Notes:

Contractors To Scrutinize Your Claims More Closely

 Medicare payment error rate increases.

The Centers for Medicare & Medicaid Services Dec. 13 unveiled the Medicare error rate - alongside a promise to breathe down your contractor's neck until the rate improves.
 
In fiscal year 2004, the error rate for fee-for-service claims was 9.3 percent, compared to last year's adjusted rate of 5.8 percent. FY 2003's unadjusted error rate, which includes non-responses, was 9.8 percent.
 
The majority of this year's errors were due to insufficient documentation. Other problems included non-responses to requests for medical records, medically unnecessary services and incorrect coding.
 
But CMS says new "detailed performance monitoring" of individual Medicare contractors will more accurately measure error rates in Medicare payments - and slash that rate down to 4 percent in four years. Durable medical equipment regional carriers had an error rate of 11.1 percent while fiscal intermediaries' rate was 15.8 percent.
 
Among DMERCs, Palmetto GBA (Region C) had the worst error rate at 14 percent while Adminastar Federal (Region B) fared the best with 6.6 percent. CMS did not separate out error rates for regional home health intermediaries.
 
Redoubled compliance efforts will likely mean more attention to your claims this fiscal year.
 
To improve error rate medical review responses, CMS notes it has extended the timeframe from 55 to 90 days (see Eli's HCW, Vol. XIII, No. 39, p. 309). In 2005, it will try other solutions like accepting electronic records in small tests and more education.
 
The 2004 error rate short report is at
www.cms.hhs.gov/CERT.

 

  • Your patient base could make judicial penalties that much harsher. One DME company owner recently learned that the hard way, when she had no luck appealing an upgraded 10-year prison sentence.
     
    Jacqueline O. Richardson was sentenced last year for illegally receiving $385,000 from Medicaid for nonexistent business transactions. In a recent appeal, Richardson argued that the sentencing did not apply because the offense involved a large number of victims - and she did not know they were "vulnerable." Under sentencing rules, jail time can increase by two levels for offenses against "vulnerable victims."
     
    The U.S. Fifth Circuit Court of Appeals affirmed the 10-year sentence, and reminded that sentencing guidelines provide a four-level increase for offenses involving 50 or more victims, according to its Dec. 6 decision (No. 03-51000). "Richardson knew that the victims, most of whom were over the age of 65 and physically disabled, were vulnerable," the decision reads.
     
    Prosecutors charged Richardson's original scheme was promising patients supplies that were never delivered, not appropriate or were substandard, according to Texas Attorney General Greg Abbott.

     

  • CMS apparently won't be losing its head honcho after all. In a surprise move, President Bush has nominated Environmental Protection Agency chief Mike Leavitt as Secretary of the Department of Health and Human Services. Observers widely expected the President to put up CMS Administrator Mark McClellan for the job instead of the former Utah governor.

     
  • You'd better check your wage index one more time before settling on your 2005 budget figures. CMS corrected some wage index figures in a Nov. 30 Federal Register notice at www.access.gpo.gov/su_docs/fedreg/a041130c.html.

     

  • Following CMS' recent clarification that patients receiving non-medical services don't require comprehensive assessments (see Eli's HCW, Vol. XIII, No. 42, p. 333), some HHAs are confused on exactly who needs what. CMS is here to help with a patient classification table spelling out which patients require OASIS, comprehensive assessments without OASIS, or neither. Download the one-page tool at www.cms.hhs.gov/oasis/patientclas.pdf.

     

  • Medicare's beneficiary helpline, 1-800-MEDICARE, is receiving a failing grade from government watchdogs. Callers from the Government Accountability Office received inaccurate answers to questions about 30 percent of the time, according to a new report (GAO 05-130). Representatives did not answer 10 percent of the calls because they transferred callers to other contractors that were not open for business, or inadvertently disconnected the callers.
     
    The GAO asked six questions 70 times each, and checked the call center reps' answers against the model answers provided by CMS. The topics of the questions included power wheelchairs, drug cards, Medigap, Medicare Part B enrollment and eye exams.
     
    Providers aren't faring much better: An August GAO study warned providers that their Medicare carrier's call centers are only giving them correct answers to policy-oriented questions about 4 percent of the time.
     
    The new 1-800-MEDICARE report is at www.gao.gov/new.items/d05129.pdf.

     

  • Medicare managed care programs look to be on the rise again, and that could be bad news for home care providers and patients.
     
    CMS has established 26 regions in the nation for Medicare Advantage Preferred Provider Organiza-tion health plans in 2006, HHS Secretary Tommy Thompson has announced. "Medicare beneficiaries will be able to save on their health care and prescription drug costs by joining a Medicare health plan," Thompson urges in a release.
     
    "We particularly wanted to make sure that there will be plenty of opportunities for beneficiaries who live in rural communities to have access to lower-cost health plans, something that didn't happen with the Medicare+Choice program," CMS Administrator Mark McClellan says in the release.
     
    Home health agencies have had a notoriously difficult time getting managed care plans to approve home care services approaching anywhere near Medicare service levels, they say.

     

  • The co-owner of Texas-based Bedside Medical Equipment & Supplies and CLD Medical Supply has pled guilty to conspiracy to commit Medicare fraud. In exchange for the plea and unspecified restitution, Francisco Giron Flores Jr. will see 32 other government charges against him dropped, reports the San Antonio Express-News.
     
    For five years the supplier allegedly paid physician Delia Garcia Romeu more than $30,000 for signing off on fraudulent certificates of medical necessity for DME including oxygen concentrators, ventilators and hospital beds, prosecutors said back in May (see Eli's HCW, Vol. XIII, No. 21, p. 166). The false certifications resulted in 1,600 claims, they charged.
     
    Flores' son, Francisco Giron Flores III, faces 31 charges in the matter and is scheduled for trial in late January, the newspaper notes. Dr. Romeu died in a car accident in July.