Transcript Document
Health Care Systems,
Medicare & Medicaid
PTP 783 Module 3
History of US healthcare
1935: Congress began to look in to
a national healthcare program
1949 (Truman) administration
– Controversial, but later targeted to
just elderly
1965 House Ways & Means
Committee brought forth 2
amendments to the SSA: Titles 18
Medicare & 19 Medicaid
Evolution of Geriatric
Reimbursement:
Medicare
Title 18 of Social Security Act 1965
– Provide protection against cost of
hospital and related care aged >65
who are entitled to SS retirement
benefits – Medicare A
– Permit >65 y.o. to purchase protection
against the cost of physician services,
one-half of the cost to be paid by the
federal government – Medicare B
Evolution of Geriatric
Reimbursement:
Social Security
Title 19 of Social Security Act
– Federal government matches cost of
medical assistance for medically
indigent aged person for all needy
persons for whom the state is receiving
federal grants - Medicaid
Who Opposed the expansion of
health care coverage?
AMA
AHA
Insurance reps
Management special-interest
groups
The political right
Sounds familiar?
Evolution of Geriatric
Reimbursement
Balanced Budget Act 1997
– Effected PT Reimbursement in
– SNF
– Home Health
– Hospitals
– Outpatient
– Medicare choice Plans
– Inpt Rehab spared for about 3 years
The “Upside” to the Balanced
Budget Act
Anti Fraud Laws
– Billing for services not rendered
Anti Abuse Laws
– Billing for services not considered
“reasonable and necessary”
– Appropriate documentation is a must
– Skilled service requirement
Medicare & Medicaid
CMS: Centers for Medicare and
Medicaid Services
Purposes:
– To establish policies on coverage,
eligibility, & reimbursement
– To establish standards for providers
– To provide program administration
– To monitor the performance of
contractors and states
Medicare is made up of:
Part A services: hospital, in-pt
Part B services: out-patient
services
Part C (Medicare Advantage plans)
HMOs
Part D: Medications
Do you have to be over 65 to
have Medicare?
NO
Stipulations:
– Over 65 who is eligible for Social
Security
– Railroad retirement benefits
or
– Disability benefits for greater than 24
months
– Chronic renal disease
Why is it important for physical
therapists to be familiar with the
rules defining skilled and
nonskilled services for Medicare
recipients?
Skilled Rehab Services covered
by Medicare:
o
o
o
o
o
o
o
o
o
o
Evaluation
Reevaluation
Ther ex
Manual therapy
Gait training
ROM
Ultrasound, E-stim
Diathermy
Paraffin
Whirlpool
o Transfer training
o Establishing a FMP
o Restraint
evaluation
o Orthotic training
o W/c training
o Pt & family training
o Vasopneumatic
devices
o Infrared * (depends on
intermediary)
Medicare Part A coverage
Hospital
–
–
–
–
First 60 days pay all but $1184 (deductible)
61-90 days pay all but $296/day
91-150 days pay all but $592/day (lifetime reserve days)
>150 days Medicare pays nothing
SNF
– Medicare pays first 20 days at 100%
– then 80% from day 21-100 up to $148/day
– after 100 days Part A services pays nothing
Home Health
– Pays 100% medically necessary services, and 80% DME
• Must be home bound and under physician’s care
Hospice
– Pays 100% except limited cost sharing for meds and respite care
(5% discount off Medicare approved rate)
– Has to be a Medicare approved hospice inpt facility (not the pt’s
home or a SNF that is not approved)
Blood
– Pays for first 3 pints furnished by hospital or SNF during a
covered stay
Other issues with Medicare
Benefit period: begins on day 1 of
hospital and ends after 60 days of
wellness after d/c from hospital or
SNF.
Medicare & SNFs
For Medicare coverage with PART A
services the pt must have
A 3-day qualifying stay in the hospital
Require skilled services (PT, OT, ST, nursing)
If the pt is not directly admitted to a SNF after
d/c from the hospital then he/she has 30 days
to be admitted to the SNF for Part A services to
cover her stay.
Care at SNF must be for the same dx as what
pt was hospitalized for
Prior to PPS (1997) SNFs were
paid in 3 different categories
1. Routine costs: room, nursing services,
medical supplies, psyc & social
services, & use of facility equipment
2. Ancillary costs: therapy, meds, labs
3. Capital related costs: cost of land
*now it all bundled into one per diem rate
Medicare Assessments in SNFs
Medicare requires SNFs to do periodic
assessments throughout a patient’s stay
to determine level of payment.
AKA: PPS (Prospective Payment System)
Assessment Name
End Date
Days Covered
# of Days Authorized for Payment
5-Day Assessment
1 to 5
1 to 14
14
14- Day Assessment
11 to 14
15 to 30
16
30- Day Assessment
21 to 29
31 to 60
30
60-Day Assessment
50 to 59
61 to 90
30
90-Day Assessment
80 to 89
91 to 100
10
Medicare RUG levels
During those assessment periods
the patient must fit into a RUG
level (Resource Utilization Group)
Category
Minutes
Disciplines & days (within a 7 day period)
Ultra High
720
At least 2 disciplines, one is at least 5x/wk (other
at least 3x/wk)
Very High
500
At least 1 discipline for at least 5 days
High
325
At least 1 discipline for at least 5 days
150
At least 5 days of any combination of the three
disciplines
Medium
Low
45
At least 3 days of any discipline combination and
2 or more nursing rehabilitation services for at
least 15 minutes
Medicare Part B
Deductible: $147/yr
Medical Expenses
– PT Services
– 80% of hospital based services
– All other PT clinics subject to therapy cap $1900
Clinical Laboratory Services
• Pays 100%
Home Health
– 100%, DME is 80%
OP Hospital Treatment
– 80%
Blood: 3 pints ‘free’, afterwards covered at 80%
Reimbursement for PT services:
Outpatient – Medicare Part B
$1900 cap for non-hospital PT
(2013)
– On January 1, 2013, Congress passed
the American Taxpayer Relief Act of
2012 which extended the Medicare
therapy cap exceptions process until
December 31, 2013
Part B Premium
Part B services may be used
when
There has been a decline in functional
level due to disease, injury, or condition
May or may not have been hospitalized
Not covered currently by Part A services
Decline can be due to:
Pain with decreased functional level, exacerbation
of chronic condition with functional decline,
exhaustion of Part A services, but still requires
further PT services.
Medicare payment for home
health services
PPS: predesignated payment that varies
with health condition & care needs
Agencies provided payment for each 60day episode of care.
Can have more than one 60 day period
Adjustments are made for significant
changes in condition or pts with fewer
visits
OASIS if under Part A benefits
Quality Measures in Home
Health
Improvements in mobility:
– Walking or moving around, transfers in/out of
bed, less pain while moving around
ADLs
– Bladder control, bathing, correct use of meds,
dyspnea levels
Long-term outcomes
Patient medical emergencies
– Hospital admissions, urgent medical care
Managed Care by Medicare
Also called Medicare Advantage
Plans
MCOs control access to health care
services and create an system that
works on efficiency of payment
As with most MCOs bureaucracy
results in lapse of time from referral
to treatment which impacts
outcomes and complicates
continuity of care.
HMO pros/cons
Pros:
– Minimal paperwork
– Additional services provided at little to no cost
(hearing aids, eyeglasses, dental care)
Cons:
– Gatekeeper: limits PT treatments
– Specifies which providers can be used
– Income received by HMO is on a prepaid basis:
so increased incentive to minimize costs.
PT Practice Concerns
Regarding Medicare
Need to be “enrolled”
Obtain a provider number
Need to accept fee schedule
No waiving copays
Patient may have coordination of
benefits with MC primary, other
provider secondary
In order for Medicare to pay
physical therapy services must
be:
Reasonable
Necessary
Skilled
Appropriate frequency & duration
Expectation that the condition will
improve
Physician must sign the
certification every 90 days
Medicaid
Differs state by state
Low income (at or below 133% of national
poverty level)
May have to ‘spend down’ to be eligible
Spousal Impoverishment Plan: spouse can
retain a relatively generous amount of
income and assets
Funded by both federal and state levels
Does not pay for MOW, unless pt has a
waiver
In some states: PT is an ‘optional’ benefit
for Medicaid recipients
Medigap insurance policies
Created to gap the payment necessary
when part A or B services are not covered.
Usually covers the 20% copayment that A
or B does not cover
Expensive
Questionable future due to high costs
Medicare only pays 80% of allowable
charges, so many providers charge more
than this: leads to need for Medigap or
other coverage
Veterans Benefits
Veterans Administration (VA)
provides a program that covers
health care for war veterans
through over 153 VA hospitals, 773
outpatient centers and 100 VA
nursing homes & contracts with
community facilities.
May be able to get specific services
At times wait can be long and
distance traveled is great.
Other Long Term Care Policies
in creation
35 states are creating their own
policies
Hawaii: Family Hope program:
program to finance long term care.
Medicare Fraud & Abuse
Fraud occurs when someone
intentionally falsifies information or
deceives the Medicare Program.
Abuse occurs when doctors or
suppliers do not follow good
medical practices that can result in
unnecessary costs to Medicare
Medicare and the Future
Pay for Performance- PQRI
– Will soon be paid for performance of patients. Gcodes.
Accountable Care Organizations
– Where department get paid for services
Medical Homes
– Cluster of all health care professional that give care
to a patient. You can treat in multiple settings.
Annual Wellness Visit
– One time a year can see physician for wellness check
– BP, Medication, Cognitive loss, functional levels,
*need fall risk*
‘Incident to’ rules: physician referral hand pick
patients, not apply to therapy cap.
Resources
http://www.cms.gov/
Web page for Centers for Medicare
and Medicaid Services (CMS)
www.ssa.gov/OP_Home/ssact/title
18/1800.htm
– Medicare Act
APTA Government Affairs