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AHRQ Announces Systematic Review of Clinical Literature on Lower Limb Prostheses

The Agency for Healthcare Research and Quality (AHRQ), the “government agency tasked with producing evidence to improve the quality of healthcare while working with partners to ensure that the evidence is understood and used” recently announced that it will be initiating a systematic review for lower limb prostheses.  The systematic review will be performed through the Evidence Based Practice Center Program of the AHRQ and the stated purpose of the systematic review is “to examine the available clinical evidence that defines practices in the care of beneficiaries who require lower limb prostheses (LLP).”

While the announcement does not tie the systematic review to the work of the inter-agency taskforce assigned to review the delayed draft Local Coverage Determination (LCD) that was released by the DME MACs in the summer of 2015, it is clear that the initiation of the systematic review for lower limb prostheses is directly related to the work of this taskforce.

AOPA will be requesting a meeting with representatives of the AHRQ in order to discuss existing systematic reviews for lower limb prostheses that have recently been completed through AOPA funding as well as the previous and current cost effectiveness studies that have been developed by Dobson DaVanzo.  In addition, AOPA will discuss the ongoing work of the RAND Corporation to determine the cost effectiveness of prosthetic intervention.

AOPA will continue to inform its membership of any developments in the status of the AHRQ initiated systematic review.

Questions regarding this issue may be sent to Joe McTernan at jmcternan@aopanet.org or Devon Bernard at dbernard@aopanet.org.

O&P and Other Subject to RAC Audits Greatly Interested by U.S. District Court Decision to Reject an HHS Request for Delay of Court Action in Hospital Suit Challenging ALJ Delays in Excess of Statutory 90 Day

In 2014, the American Hospital Association filed suit in the federal District Court seeking relief because HHS and the Office of Medicare Hearings and Appeals (OMHA) have for many years egregiously exceeded the statutory provision which assures a provider who must return money to Medicare as a result of an audit a final ALJ decision within 90 days after filing a request for ALJ appeal.  Originally, the District Court dismissed the case, but early this year the D.C. Circuit Court of Appeals reversed that decision and ordered that the case should go forward in the District Court.

HHS/OMHA asked for a delay of over a year (until September 30, 2017) citing proposed regs (to which both AOPA and the O&P Alliance responded) intended to reduce the backlog–which are somewhat problematic in their own right.  The Court ruled not to approve HHS’ request for such a delay, but rather that case will go forward with a hearing in two weeks.

Court Sees Likelihood that the Backlog and Delay in ALJ Decisions Will Grow, Despite Various Efforts by HHS/OMHA Proposed Rule

In his ruling rejecting the HHS request for delay, District Court Judge Boasberg said that even with the administrative changes proposed by HHS/OMHA, it would not reverse the backlog, but rather that the ALJ backlog/delay would nonetheless probably get worse, not better over several years.  The increased claim settlement efforts, and appointing attorneys to undertake adjudication of appeals in the proposed regs, would, the Court said, at best reduce the growth of the backlog. The specifics of the delay are daunting.  Without any remedial actions by either HHS/OMHA or Congress the projected number of appeal cases awaiting ALJ hearing would reach nearly 1.1 million.  HHS reports average delay in 2016 is 850 days, but OMHA says in the third quarter of this year it took 935 days for appeals to get through the first three levels of appeal, not getting to a final ALJ decision. Reports from O&P patient care appellants seems to run closer to 4 years waiting time to get to an ALJ decision!  HHS proposed changes to the RAC program, but these would impact just 7 percent of RAC cases.  Finally, the judge underscored that several Congressional initiatives, e.g., the AFIRM bill had not moved much closer to enactment in the 7+ months since the Circuit Court of Appeals decision, nor did it appear likely that significant budget increases to hire substantially more ALJs would be enacted anytime soon.

The Appeals of RAC Decisions, and the Related Interest Due if Provider Wins May Be Making the Program Much Less Financially Beneficial to the Federal Government Than Many Think

As a report from Dobson-DaVanzo last year demonstrated, with the long ALJ delays, coupled with the 11% annual interest payable by the government on the amount the government recouped if the provider prevails, the actual yield to the government from the audits is greatly reduced, and perhaps close to being fully consumed by its costs.  For example, RAC auditors receive something in range of a 13% bounty on whatever they claw back.  If the case is reversed after the ALJ decision 4 years later, CMS would pay the 11%, which when compounded amounts to a 51.8% interest over the 4 years.  In this scenario CMS may be able to secure the return of the RAC auditor commissions.  Dobson-DaVanzo’s work identified at least 58% of O&P RAC appeals are won at the ALJ level (this is the highest success rate among all provider subgroups, and could perhaps be higher,  as only verified ALJ wins could be affirmatively identified)-this coupled with the above large interest due, would appear to largely obliterate any net long-term CMS gains from all the RAC efforts in O&P.

One concluding note is that two bills supported by AOPA would help alleviate some of the adverse impact of RAC audits on O&P professionals.  S.829/H.R. 1530 would assure that CMS must recognize the orthotist/prosthetist notes of patient visits as a legitimate part of the medical record for purposes of determining medical necessity. H.R. 1526 would help reduce the cash flow devastation of audits and extended wait for appeals by establishing the maximum amount of recoupment that CMS could claw back before a final ALJ appeal decision to 50% of the contested amount until such time as HHS/CMS/OMHA are operating within the clear terms of the statute and assuring delivery of final ALJ decisions within the stated 90 days.

Contact Joseph McTernan with any questions at 571/431-0811 or jmcternan@aopanet.org.

White House Design For All Showcase

White House Fashion Show celebrates inclusive design, assistive technology, and prostheses. #DesignForAll

See a video of the fashion show, provided by the White House, as well as a recording of the closing remarks by Alison Cernich, Director of NICHD National Center for Medical Rehabilitation Research, below.

Alison Cernich discusses an ambitious research plan mapped by 17 institutes and centers at the National Institutes of Health during her closing statement at the White House Design for All Showcase.

Design for All Showcase

AOPA Submits Comments to the FDA on 3D Printing

AOPA has submitted comments on the publication entitled Technical Considerations for Additive Manufactured Devices: Draft Guidance for Industry and Food and Drug Administration Staff which was published in the Federal Register on May 10, 2016.

AOPA submitted comments pertaining to additive manufacturing in the design and fabrication of external prosthetic components and orthotic devices, specifically through the use of 3-D printing. The comments submitted reflect that AOPA does not believe that either additional or lesser regulatory burdens should be placed on manufacturers of prosthetic components and orthotic devices solely based on the decision to utilize an additive manufacturing process into their fabrication protocols.

An excerpt of the comments:

“AOPA firmly believes that the manufacture of a prosthetic component or orthotic device is only a small part of the creation of an artificial limb or orthoses that meets the individual needs of a particular patient. The components that are included in the completed prosthesis or orthosis must be adjusted, and aligned by a properly educated, trained, and certified or licensed healthcare professional such as an orthotist or prosthetist. 

AOPA fully supports the role of the FDA in ensuring that medical devices, including prosthetic and orthotic devices remain safe and effective, but believes the current direction of the FDA, as outlined in the draft guidance document, to not alter regulatory requirements solely as a result of the use of additive manufacturing is appropriate…. (FDA’s stated position) will encourage the development of technology while assuring that devices created through additive manufacturing remain safe and effective for use by the general public, and maintaining consistency and a level regulatory playing field for the devices without regard to the specific method of fabrication employed by the manufacturer.”

Read the comments submitted.

Congress Being Urged by Some in “Big Medicine” and CMS, to Downgrade or Eliminate Stark Laws/Rules That Preclude Self-Referral

stark lawsEarlier this year, Medicare implemented a new policy on Comprehensive Care of Joint Replacement.  While positioned as a pilot test, all hospitals were forced to be involved.  Under this new program, hospitals are given financial incentives to reduce the total cost for hip and knee replacements.  If hospitals succeed in driving down the total costs, the hospitals keep a portion of the savings. If the hospitals fail to drive down the total costs, the hospitals will have to pay a portion of the tab.  If you are a Medicare patient, do you think this means you will receive the best quality of care or the cheapest?  If you said “cheapest”, keep reading to find out how Stark Rules could protect you from these “risk-sharing” deals.

The Stark Rules, also known as the Stark Laws, were created to help control conflicts of interest in medical care.  For example, they limit certain aspects of physician ownership of facilities to which physicians refer patients, including those facilities that provide blood tests and X-rays. In addition, they restrict other actions which could compromise the fundamental principle that patients can always look to their health care providers, first and foremost, to advocate for what is best for them as patients – not what makes them the most money.

As CMS/Medicare and other payers try to move aggressively toward “valued-based purchasing” and provider risk-sharing, CMS, private payers, and hospitals—all of whom stand to profit if others, namely providers, can be enticed to shoulder some of the risk and uncertainty that goes along with risk sharing—have found the Stark rules inconvenient and have beseeched their friends in Congress to do away with or, at least, substantially reduce the ‘teeth’ in the Stark Rules’ prohibitions on provider conflict of interest.  It is a game of big medicine vs. the little guys—patients and providers.  What we talk about as risk sharing today is very similar to what we used to call capitation, managed care, or HMOs.  If you think those things made things better for patients, then sure, do away with the Stark Rules and allow the system to create deals that operate to incentivize reductions in care to patients.

There is one aspect of how CMS has interpreted the Stark Rules that has proven particularly controversial, that being the in-office ancillary services (IOAS) exception, which among a number of other instances where it has permitted a measure of physician self-referral that the Stark Rules would NOT permit, this IOAS exemption granted by CMS has been used by some physicians to themselves deliver and bill to patients for prosthetics and/or orthotic devices supplies within the physician’s office or a related physically adjacent facility.  While AOPA and others oppose these broad interpretations of the in-office ancillary services exemption, it is important to recognize that eliminating the Stark Rules would open the door to even wider, essentially unlimited self-referral by hospitals, rehab facilities, as well as physician offices.  If you oppose the exemption CMS has granted in the in office ancillary services exemption, you very likely favor the underlying broad prohibition on self-referral (by physicians and other providers) that is embodied in the Stark Rules.  The bottom line, after all, is assuring the highest possible level and quality of patient care for prosthetic and orthotics patients.

However, if the Stark Rules are eliminated, Payers could set mechanisms to award all the business to the lowest bidder…again, patient beware.  Keep your eyes open, and let your voices be heard—with Congress, with your state legislators and others—it’s important!

DME MACs Release New Coding Guidelines for O&P Suppliers

The four Durable Medical Equipment Medicare Administrative Contractors (DME MAC), recently released a joint correct coding bulletin reminding DMEPOS suppliers that it is each supplier’s responsibility to select the proper HCPCS codes for billing.

To aid suppliers in their selection of the proper HCPCS code(s) the DME MACs provided the following tips:

  • Check the PDAC Product Classification Lists
  • Review DME MAC publications for coding bulletins and coding guidelines
  • Refer to the long code descriptor and select the code with the descriptor that most closely describes the item you are providing.
  • Most code narratives are written broadly to be all-inclusive. You may not find a specific code that perfectly matches a product. Use the code that most closely describes the item rather than a NOC (not otherwise classified) or miscellaneous code.
  • Review LCDs & Policy Articles for coding guidelines for additional information on the characteristics of products that meet a specific HCPCS code.
  • Don’t select a code based upon the fee schedule amount. HCPCS codes describe the product not the price.
  • Check with the PDAC. The PDAC may provide information, outside of a formal product review, that will assist you in code selection.

The bulletin also stressed that the DME MACs and the PDAC are the only entities that have the authority to assign HCPCS codes to specific products and if a supplier chooses to follow coding recommendations from outside sources; that these recommendations will have no “official standing”  during a possible claim review/audit.

AOPA is currently analyzing the joint bulletin and is working with the DME MACs to obtain some clarification and guidance on specific points raised in the bulletin. We will keep you posted of any new information.

Read the full bulletin.

Questions? Contact Devon Bernard at dbernard@AOPAnet.org or Joe McTernan at jmcternan@AOPAnet.org

RAC Audits Placed on Hiatus Again

The Centers for Medicare and Medicaid Services have notified the four existing RAC contractors that as a result of the upcoming award of new RAC contracts, current RAC audit activity will be placed on hiatus to allow the RACs to complete their open audits prior to the completion of their contracts.  CMS has provided the following dates to the RAC contractors regarding current audits.

  • May 16, 2016 – the last day that a Recovery Auditor could send Additional Documentation Request (ADR) letters or semi-automated notification letters.
  • July 29, 2016 – the last day that a Recovery Auditor may send notification of an improper payment to providers. This includes sending a review results letter or no findings letter, and/or providing a portal notification to each provider.
  • August 28, 2016 – Recovery Auditors will complete all discussion periods that are in process by this date. Recovery Auditors continue to be required to hold claims for 30 days, starting with the date of the improper payment notification (via letter or portal) to the provider, to allow for discussion period requests.
  • October 1, 2016 – the last day a Recovery Auditor may send claim adjustment files to the MACs.

While this is good news for O&P providers in the short term, it is not a signal that the RACs are going away any time soon.  It is simply a pause to allow for a smooth transition to new RAC contractors, including the single, national RAC contractor that will focus on claims for DMEPOS, Home Health, and Hospice services.  While this announcement may result in a temporary slowdown of RAC activity, it is important to remember that claims that are submitted today may be selected for audit by RAC contractors in the future.

Bureau of Labor and Statistics Releases CPI-U Update

On July 15, 2016, the Bureau of Labor and Statistics (BLS) released its latest update on the Consumer Pricing Index for Urban Areas (CPI-U).  From June 2015 through June 2016 the CPI-U increased by 1.0%.  This figure is relevant to O&P providers because it is used as the base for determining the adjustment for the 2017 Medicare DMEPOS fee schedule.  While the CPI-U increased by 1.0%, the Affordable Care Act, beginning in 2011, introduced a second factor that is used to determine the annual DMEPOS fee schedule, the Multi-Factor Productivity (MFP) Adjustment.  The MFP is not expected to be released until later in the year, usually in November.

The combination of the CPI-U increase or decrease and the MPF adjustment determines the annual update to the Medicare DMEPOS fee schedule.  What this means is that the CPI-U of 1.0% minus the yet to be determined MPF adjustment will result in the update to the DMEPOS fee schedule that will be implemented for Medicare claims with a date of service on or after January 1, 2017.  The MPF adjustment was -1.2% in 2011, 0.9% in 2012, 0.8% in 2013, 0.6% in 2014, and 0.5% in 2015.  While the MPF adjustment has been trending downward, there is no guarantee that it will continue to do so in 2016.

AOPA will monitor the BLS website for news regarding the MPF adjustment and will notify AOPA members as soon as it is released.

Questions regarding this issue may be directed to Joe McTernan at jmcternan@aopanet.org or Devon Bernard at dbernard@aopanet.org.

Tom Watson Named 2016 Lifetime Achievement Award Honoree

WASHINGTON, D.C. – The American Orthotic & Prosthetic Association (AOPA) will honor Thomas Watson, CP with the Lifetime Achievement Award at the 2016 AOPA National Assembly in Boston, MA. This award is bestowed on individuals who have made exceptional contributions to the orthotics and prosthetics profession.

James Campbell, PhD, CO, FAAOP, AOPA’s President explained: “The Lifetime Achievement Award is the highest honor in the O&P profession, and Tom Watson was a natural choice. He has run a successful business, while serving his community through his civic engagement. His many years of effective advocacy for the O&P community should be appreciated by all of us.”

Tom and his wife Barbara own Tom Watson’s Prosthetic & Orthotic Lab with locations in Owensboro and Evansville, Kentucky. He is a past president of AOPA and has served on AOPA’s Government Relations Committee. He works personally with the AOPA Veteran’s Affairs committee, the O&P PAC, and is a grass roots lobbyist who participates in the annual Policy Forum and educates local lawmakers on O&P all year round.

Tom is the former mayor of Owensboro, Kentucky, from 2005-2008 and is seeking re-election in 2016. He has served as past-chair of the Owensboro Chamber of Commerce, a board member of Industry, Inc., Owensboro Medical Health System, and board member of the Governor’s Workforce Investment Board. He is on the foundation board at the Owensboro Community and Technical College. He is a member of the American Academy of Orthotists and Prosthetists (AAOP), and is a facility surveyor for the American Board for Certification (ABC) for Facility Accreditation. In 2016, he earned the Hall of Achievement award from the Owensboro Public School System.

As an above knee amputee since he was injured in his teens, Tom has long supported programs for people with physical disabilities. He is affiliated with the Kentucky and Indiana Commission for Children with Special Health Care Needs, the Veteran’s Administration, and the Easter Seals Rehabilitation Center, with particular emphasis on pediatrics and developmental disabilities. He currently volunteers at the Daniel Pitino Shelter in Owensboro.

Tom and his wife Barbara have two sons and seven grandchildren.

Tom will be presented with the Lifetime Achievement Award at the 2016 AOPA National Assembly in Boston, MA, at the General Session on Saturday, September 10 at 7:30 am.

Questions? Please contact Lauren Anderson, AOPA’s Manager of Communications, Policy, and Strategic Initiatives at 571/431-0843 or landerson@aopanet.org.

AOPA Announces Ashlie White Joins as Manager of Projects

WASHINGTON, D.C. – The American Orthotic & Prosthetic Association (AOPA) has announced that Ashlie White, MA has joined the AOPA staff team as the Manager of Projects. The addition of Ms. White represents another proactive step that AOPA has taken to ensure the success of AOPA members and the O&P profession through projects and initiatives. Ms. White will be responsible for managing ongoing projects as part of AOPA’s Survival Imperatives, including AOPA’s Registry, Outcomes and Comparative/Cost Effectiveness programs, Mobility Saves & Communication, as well as recent additions to the AOPA portfolio addressing a Reimbursement Compendium and Membership Enhancement. She will also be assisting the AOPA Officers, AOPA Executive Director and a Prosthetics 2020 Expert Advisory Committee on the recent partnership with the RAND Corporation, commissioned to work advancing a comprehensive study to establish the value proposition for prosthetic services.

Executive Director Tom Fise remarked “Ashlie White is going to be a wonderful addition to AOPA, bringing her experience in a patient care facility and as a member of AOPA, on the state O&P association front, as well as her many talents and the work ethic that we have seen with her work with other O&P organizations.”

Ms. White has previously served as Director of Project Development and then Director of Operations at Beacon Prosthetics and Orthotics. She has also served as Director of Government Affairs for the North Carolina Orthotics and Prosthetics Trade Association (NCOPTA) and as a member of the Board of Directors for National Association for the Advancement of Orthotics and Prosthetics (NAAOP). She earned a Master’s degree in Journalism (Technology and Communication) and a BA in Journalism and Mass Communication at the University of North Carolina at Chapel Hill.

Questions? Please contact Lauren Anderson, AOPA’s Manager of Communications, Policy, and Strategic Initiatives at 571/431-0843 or landerson@aopanet.org