Friday, September 28, 2007

AoA Nursing Home Diversion Modernization Program Grants

On September 9, 2007, the Administration on Aging announced the award of $5.7 million to 12 states for Nursing Home Diversion Modernization Grants to improve state efforts to assist individuals avoid unnecessary nursing facility placement, impoverishment and spend-down to Medicaid. The states will contribute more than $3 million to support the effort.

Congress included authority for these nursing home diversion grants in the most recent reauthorization of the Older Americans Act (OAA). These new provisions in the OAA complement the changes occurring in Medicaid to rebalance the long term care system.

The grants will help enable states to use existing OAA and state revenue funds in a more flexible manner so that a greater range of support options can be made available to individuals who are at high risk of nursing home placement. States receiving grants are Arkansas, Connecticut, Georgia, Illinois, Kentucky, Maryland, Michigan, Minnesota, New Hampshire, New Jersey, Vermont and West Virginia.

For more information, go to AoA's web site at http://www.aoa.gov/press/pr/2007/September/9_24_07.asp.

NCAL Submits Proposed Changes to Architectural Guidelines

The National Center for Assisted Living (NCAL) has submitted several proposed changes to the American Institute of Architects (AIA) “Guidelines for Design and Construction of Health Care Facilities.” NCAL’s comments were submitted during the phase of the process for updating the AIA guidelines in which public proposals for possible changes to the existing guidelines are due by Sept. 30. An AIA committee will consider the proposed changes along with its own proposals and vote on whether to accept or reject them, or accept them with modifications. Based on this work, the AIA committee then will draft a revised edition of the guidelines, which will be posted on the AIA’s Web site for public review and comment next year.

NCAL’s proposed changes to the guidelines’ chapter on assisted living facilities would:

· Promote “universal design” practices (e.g., appliances/storage areas/spaces that can be utilized by people with various types of disabilities);
· Make the recommended number of parking spaces more flexible;
· Facilitate designs that combine activity and dining areas; and
· Promote residents’ control of their environment, including artificial and natural lighting.

Changes to the AIA guidelines can be proposed and viewed at: http://www.fgiguidelines.org/. Many states and localities use the AIA guidelines to develop building codes and regulations. The 2006 edition of the guidelines featured a chapter on assisted living for the first time.

CMS Issues Guidance to Implement DRA Provision on Self-Directed Personal Assistance Services

On September 13, 2007, the Centers for Medicare & Medicaid Services (CMS) issued a State Medicaid Director letter to provide guidance on the implementation of the Deficit Reduction Act (DRA) provision, Optional Self-Direction Personal Assistance Services (PAS) Program (Cash and Counseling). Under this provision, states may amend their Medicaid state plan to provide self-directed PAS. States are allowed to limit this benefit geographically, by target population and numerically through enrollment caps. CMS also issued a pre-print to assist states to submit such an amendment.

The self-directed PAS state plan option permits individuals to hire, fire, supervise, and manage employees of their own choosing, including, at the State's option, legally liable relatives, and to direct a budget from which the individuals purchase their PAS. States are required to assure safeguards to protect health and welfare of Medicaid beneficiaries under this option and to assure the financial accountability for funds expended for self-directed services. Participants must have sufficient supports to manage their workers and budgets and an individualized backup plan for critical contingencies and potential harm.

The benefit is not available to individuals who live in a home controlled by a provider of services not related to the individuals by blood or marriage. If PAS are provided as part of a package of services within a congregate living arrangement (e.g., in an assisted living arrangement), the State plan PAS would not be available.

States may permit individuals to choose to receive cash disbursements, on a prospective basis, to purchase personal assistance identified in their service plan. States may allow individuals to use the funds to acquire items that increase independence or substitute for human assistance.

The State Medicaid Director letter is available on CMS' web site at http://www.cms.hhs.gov/SMDL/SMD/itemdetail.asp?filterType=none&filterByDID=-99&sortByDID=1&sortOrder=ascending&itemID=CMS1203243&intNumPerPage=10.

Friday, September 21, 2007

AHCA Offers Comments on the Draft Continuity Assessment Record and Evaluation (CARE) Instrument

The American Health Care Association (AHCA) has offered comments to the Centers for Medicare and Medicaid Services (CMS) on the draft Continuity Assessment Record and Evaluation (CARE) instrument. AHCA supports the development of an assessment process that may be more responsive to the changing long term care patient acuity levels and offers a seamless payment system based on diagnostic-specific conditions rather than the site-specific method currently used.

Issues with the CARE instrument identified by AHCA predominantly focuse on the need to set definitions and standards to improve tool clarity and accuracy. AHCA criticizes the inclusion of the certifying statement that requires clinicians to assure accuracy and truthfulness of their responses under penalty of substantial personal and organizational criminal, civil and administrative penalties for submitting information found to be false. The certifying statement requires all clinician involved in the assessment to sign, document the sections they coded and provide their professional license number. Click here to view the AHCA comments.

The proposed uniform patient assessment instrument is designed to measure difference in patient severity, resource utilization, claims analysis and outcomes for patients in acute and post-acute care settings. The instrument is a component of the Deficit Reduction Act (DRA) of 2005 that authorized the Post Acute Care Payment Reform Demonstration (PAC-PRD).

During the demonstration, the CARE instrument will collect patient information on acute hospital discharge and on admission and discharge to a post acute care setting. The instrument is intended to measure differences in medical conditions or predict outcomes like discharge to home or community, rehospitalization, and changes in functional and medical status.

Currently, Research Triangle International (RTI) is pulling together a list of providers wishing to volunteer to participate in the demonstration. The pilot will be rolled-out in January 2008.

Wednesday, September 19, 2007

CMS To Expand Recovery Audit Contractors (RACs)

Section 306 of the Medicare Prescription Drug Improvement and Modernization Act (MMA) of 2003 required the Centers for Medicare and Medicaid Services (CMS), as part of the Medicare Integrity Program, to implement a demonstration project evaluating the use of recovery audit contractors (RACs). Two types of RACs were created: a RAC to address Medicare Secondary Payment (MSP) and a RAC to address claims. The task for the RACs was to identify both underpayments and overpayments for Part A and Part B services and then recoup those overpayments.

The three year RAC post-payment medical review demonstration project began on March 28, 2005, in the three states with the highest Medicare expenditures: California, Florida, and New York. Connolly Consulting is the RAC responsible for New York, PRG Schultz for California, and HealthData Insights for Florida. While AHCA is not aware of any major problems with the RACs in Florida and New York State, nursing facility providers in California have reported problems with PRG-Schultz. These problems pertain to appeals, the quality of medical necessity reviews, the statute of limitations and the contingency payment aspect of the contract with the RAC. Accordingly, AHCA had brought these issues to CMS and the Hill.

Congress, in the Tax Relief and Health Care Act of 2006, mandated an expansion of the program to all states no later than January 1, 2010. At this time, the claim RACs in the demonstration are being expanded. The New York claim RAC is being expanded to include the claims submitted to the Massachusetts fiscal intermediary (FI) plus the claims submitted to Mutual of Omaha (a national FI) from providers in New York and Massachusetts. The Florida claim RAC is being expanded to include the claims submitted to the South Carolina FI plus the claims submitted to Mutual of Omaha (a national FI) from providers in FL and SC. The California claim RAC is being expanded to include the claims submitted to the Arizona Medicare Administrative Contractor plus the claims submitted to Mutual of Omaha (a national FI) from providers in California and Arizona. There is no change to the MSP RACs at this time.

Currently, in the new states, the RAC can only perform CODING reviews (not medical necessity reviews) and only on HOSPITAL claims (not SNF claims, physician claims, etc). This will change in the spring when CMS allows the RACs to perform medical necessity reviews and to review more claim types.

CMS has indicated that the claims data from Mutual of Omaha in the 6 states plus the claims data the Massachusetts FI and South Carolina FI have already started flowing to the RACs. Hospitals from the 6 states who submit their claims to Mutual of Omaha and hospitals who submit their claims to the FI in Massachusetts and South Carolina (SC) could start to see medical record request letters and overpayment demand letters starting in mid to late September. CMS has encountered some technical issues in Arizona and their claims data has not yet started to flow. CMS indciates that it may be several more months before the agency gets all the Arizona claims flowing to the RAC.

CMS Issues Guidance on Requirements for Tamper-Resistant Prescription Paper Exempting Nursing Facilities and Certain Other Health Institutions

As reported previously in Regulatory Update , Section 7002(b) of the U. S. Troop Readiness, Veterans’ Care, Katrina Recovery, and Iraq Accountability Appropriations Act of 2007 amended Medicaid law (Section 1903(i) to provide that payment would not be made for amounts expended for medical assistance for covered outpatient drugs for which the prescription was executed in written (and nonelectronic) form unless the prescription was executed on a tamper- resistant pad. The provision becomes effective on October 1, 2007. The American Health Care Association (AHCA), the American Society of Consultant Pharmacists (ASCP), and other long term care advocates lobbied CMS to exempt the provision of drugs to residents of skilled nursing facilities, nursing facilities, and intermediate care facilities for person with mental retardation from this requirement.

On August 17, CMS issued guidance which interprets this new requirement as not applying to nursing facility services and ICFs/MR services and other institutional and clinical services such as inpatient and outpatient hospital services, hospice, physician, dental, renal dialysis, laboratory and X-ray services and not applying when the prescription is communicated by the prescriber to the pharmacy electronically, verbally or by fax or when a managed care entity pays for the prescription. The guidance can be found at:

· State Medicaid Director Letter: http://www.cms.hhs.gov/SMDL/downloads/SMD081707.pdf

State Health Policymakers Backgrounder: http://www.cms.hhs.gov/DeficitReductionAct/Downloads/Tamper.pdf

Since AHCA/NCAL had questions that were not addressed by the August 17 guidance, we requested CMS to provide additional clarification. On September 12, CMS posted several answers to Frequently Asked Questions (FAQs) designed to respond to AHCA/NCAL’s questions and assist states in implementing the requirement, which is effective October 1, 2007. CMS confirmed that nursing facilities will not be affected by the requirement; CMS concluded that a written order prepared in an institutional setting where the doctor or medical assistant writes the order into the medical record and then the order is given by medical staff directly to the pharmacy is considered “tamper resistant” so long as the patient never has the opportunity to handle that written order. Although the institutional exemption to the new tamper-proof rule does not apply to assisted living facilities, CMS’ FAQs reiterates that non-written prescriptions – e-prescriptions, prescriptions transmitted to a pharmacy by fax, and prescriptions communicated by telephone – are not subject to the requirement. CMS' FAQs also addresses concerns about whether the prescribing physician had to personally fax the prescription in order for the exemption to hold; with regard to these non-written prescriptions, CMS clarifies that “a nurse or administrative staff person who is authorized to act on the prescriber’s behalf may phone the pharmacy the order, send the order by facsimile, or electronically transmit the order to the pharmacy.”

Monday, September 17, 2007

Now Available: Red Cross Shelter Intake Tool for Disabilities

As AHCA recently announced, The American Red Cross has developed a disaster Shelter Intake Tool for identifying persons with disabilities and medical conditions during triage. The tool, which is intended to ensure that all persons are assigned to the shelter option that provides the best supports for maintaining independence, is now available at http://www.ahca.org/disaster/disaster_shelter_initial_intake_tool.pdf. For more information about the tool, go to the July issue of DD Digest at http://www.ahca.org/members/operate/special/dd/200708.pdf.

President Bush Picks White House Aide as Solicitor of Labor

On September 4, the White House announced that President Bush nominated Gregory F. Jacob, Special Assistant for Domestic Policy, to be Solicitor of Labor. Jacob previously served as Deputy Solicitor at the Department of Labor, and if confirmed by the Senate, will take over from Acting Solicitor Jonathan L. Snare.

Resource Available on the Federal Minimum Wage Increase and DD Service Systems

From 2007-2009, the minimum wage will increase from $5.15/hour to $7.25/hour in three increments. States have the option of establishing a higher minimum wage rate for hourly employees; if the state’s minimum wage is different from the federal level, the higher wage applies.

Recently, the Institute for Community Inclusion (ICI) released an issue brief to explain the effects of recent changes to the federal, and some state, minimum wage laws on DD services changes. Specifically, the brief addresses the wage effects on public benefits, such as Social Security Disability Insurance (SSDI), Supplemental Security Income (SSI), Medicare, and Medicaid; and advises developmental disabilities (DD) services providers to collaborate with Work Incentives Planning and Assistance (WIPA) project leaders and Community Work Incentives Coordinators (CWICs) to gain expertise on benefit issues for their clients.

To access the issue brief, which contains links to WIPA projects, CWICs and other resources, go to http://www.communityinclusion.org/article.php?article_id=203.

Wednesday, September 12, 2007

GAO Finds Problems with Federal Leadership in a Flu Pandemic

In August 2007, the U.S. General Accountability Office (GAO) released a report, Influenza Pandemic: Further Efforts Are Needed to Ensure Clearer Federal Leadership Roles and an Effective National Strategy. The GAO found that the federal strategy and plan do not specify how leadership roles and responsibilities will work in addressing the unique characteristics of an influenza pandemic, which could occur simultaneously in multiple locations and over a long period of time. Although the Department of Health and Human Services (HHS) Secretary would lead the public health and medical response and the Department of Homeland Security's (DHS) Secretary would lead overall nonmedical support and response actions, the Plan does not clearly address these simultaneous responsibilities or how these roles are to work together, particularly over an extended period and at multiple locations across the country.

In addition, the report points out important gaps that could hinder the ability of key stakeholders to effectively execute their responsibilities as follows:
  • State and local jurisdictions that will play crucial roles in preparing for and responding to a pandemic were not directly involved in developing the National Response Plan;
  • Relationships and priorities among actions in the Plan and Strategy are not clearly described;
  • Performance measures focus on activities that are not always linked to results;
  • Insufficient information is provided about how the documents are integrated with other key related plans; and
  • No process is provided for monitoring and reporting on progress.

The GAO made two recommendations as follows:

  1. DHS and HHS develop rigorous testing, training, and exercises for pandemic influenza to ensure that federal leadership roles and responsibilities are clearly defined, understood, and work effectively; and
  2. The Homeland Security Council set a time frame to update the National Response Plan, involve key nonfederal stakeholders, and more fully address the characteristics of an effective national strategy.

DHS and HHS concurred with the GAO report and recommendations. To access the report, go to
http://www.gao.gov/new.items/d07781.pdf.

Thursday, September 6, 2007

GAO Reports on Lack of Public Input Opportunities During Medicaid Waiver Approval Process

The General Accountability Office (GAO) released its report on public input during the approval process for Medicaid Demonstration Waivers with a finding that there is a lack of opportunity for public input at the federal level. GAO had conducted a similar study in 2002 and recommended then that Congress consider requiring improvements to the public notification and input processes at the federal level to ensure that individuals affected by section 1115 demonstrations waivers have an opportunity to review and comment on proposals before they are approved.

The recent study comes to the same basic conclusion stating: Unless Congress and HHS take action in response to the matters for congressional consideration and recommendations to the Secretary that we presented in our July 2002 report -- namely that Congress consider requiring the Secretary to improve public notification and input at the federal level and that the Secretary provide for an improved process--it appears likely that HHS will continue to approve waivers for comprehensive Medicaid demonstrations without adequate opportunity for public input. HHS disagreed with the GAO's conclusion.

To access the GAO report, go to http://www.gao.gov/new.items/d07694r.pdf.

Three New Life Safety Updates

Three new life safety updates have been posted on the AHCA Members Only Web site. They have been reviewed by the Centers for Medicare & Medicaid Services. One update is titled "Maintaining 18-inch Clear Space Below Sprinkler Deflectors," the second is "Designated Smoking Areas," and the third is "Staff Participation in Fire Drills." These updates can help facilities with life safety compliance.

To read all three updates, go to http://www.ahca.org/members/operate/life-safety/index.htm and scroll down to the heading "Fire Safety."

North American Plan for Avian and Pandemic Flu


On August 21, 2007, President Bush, along with the President of Mexico and
the Prime Minister of Canada, announced the release of the North American Plan for Avian and Pandemic Influenza. The plan outlines how the three countries will work together to prepare for and manage outbreaks of highly pathogenic avian influenza and pandemic influenza. The North American Plan provides a framework to accomplish the following:

* Detect, contain, and control an avian influenza outbreak and prevent transmission to humans;
* Prevent or slow the entry of a new strain of human influenza into North America;
* Minimize illness and deaths; and
* Sustain infrastructure and mitigate the impact to the economy and the functioning of society.

To acccess the North American Plan for Avian and Pandemic Influenza, go to:
http://www.state.gov/g/avianflu/91242.htm

Wednesday, September 5, 2007

2007 - 2008 Influenza Season

It will soon be the new influenza season and manufacturers are on schedule with their vaccine production. A good supply of influenza vaccine doses is anticipated. Although the severity of the influenza season in the northern hemisphere cannot be predicted by influenza activity in the southern hemisphere, it is interesting to note that the southern hemisphere is currently in the midst of a severe influenza season.

This year, as in past years, the need to immunize health care workers is receiving a lot of attention. Two CDC advisory committees recommend that all health care workers receive annual influenza immunizations. A helpful toolkit relating to immunizing health care workers in long term care is available on AHCA’s Web site at http://www.ahca.org/flu/immunization_toolkit_041115.pdf.

Since October 2005, Medicare certified nursing facilities are required to offer influenza vaccine annually to all residents unless contraindicated. Nursing facilities also are required to provide education to residents or their legal representatives on the benefits and risks of influenza vaccination. (Pneumococcal vaccine is also required unless contraindicated.)

For up-to-date information on influenza immunization and the 2007-2008 influenza season, access the National Influenza Vaccine Summit’s Web site at http://www.preventinfluenza.org. Along with providing general information on influenza, the National Influenza Vaccine Summit has a Web site to track dosage availability. The Influenza Vaccine Availability Tracking System (IVATS) was developed to address the difficulty health care providers may experience when trying to determine which wholesale distributors or manufacturers have influenza vaccine in stock, for sale, or on order. To visit IVATS, go to www.ama-assn.org/ama/pub/category/16919.html.

National Preparedness Month

September is National Preparedness Month, a time to encourage citizens and businesses to prepare for emergencies in their homes, businesses, schools and communities. Supported by a coalition of over 1,700 organizations including AHCA and NCAL, the effort is organized by the Department of Homeland Security. National preparedness activities take place throughout the month, with September 9-15 designated as business preparedness week, thus, it is an excellent time for long term care facilities to work on emergency plans and consider conducting exercises. For more information on “National Preparedness Month,” go to http://www.ready.gov/america/npm07/releases.html. For more information on emergency planning, go to AHCA's Web site at http://www.ahca.org/members/operate/life-safety/index.htm.