news from USSC's Healthcare Policy & Reimbursement Group

LATEST DEVELOPMENTS FROM HCFA

October 1, 1998

Notice of reopening of comment period of proposed rule and delay in adoption of provisions (Federal Register, October 1, 1998).

The proposed rule affecting Medicare payments to ambulatory surgical centers (ASCs) will be delayed until concurrent adoption of the hospital outpatient prospective payment system (PPS), which is now planned for as early as possible after 1/1/2000. [Federal Register on September 8, 1998 (63 FR 47551)].

ASC Payment rates will remain in effect until adoption of the Medicare hospital PPS with rates set as follows:

Group 1 -$314
Group 2 -$422
Group 3 -$482
Group 4 -$595
Group 5 -$678
Group 6 -$789 ($639+$150 for IOL)
Group 7 -$941
Group 8 -$928 ($778+$150 for IOL)

We encourage you to voice your opinions to HCFA. The comment period has been reopened to 5 p.m. on November 9, 1998. Mail written comments (one original and three copies) to the following address:

Health Care Financing Administration
Department of Health and Human Services
Attention: HCFA-1885-P
P.O. Box 26688
Baltimore, MD 21207-5178

For details on this important development, take advantage of our direct link to the Federal Register.

September 8, 1998

HCFA's Prospective Payment System for Hospital Outpatient Services Delayed Until Y2K (Federal Register, September 8, 1998)

Although the statutory effective date for the outpatient prospective payment system is January 1, 1999, implementation of the new system will have to be delayed because of the year 2000 systems concerns. The demands on the intermediary bill processing systems and HCFA internal systems to become compliant for the year 2000 preclude making the major systems changes that are required to implement the prospective payment system. The outpatient prospective payment system will be implemented for all hospitals and community mental health centers as soon as possible after January 1, 2000, and a notice of the anticipated implementation date will be published in the Federal Register at least 90 days in advance.

August 10, 1998

HCFA extends comment period for proposed changes to Ambulatory Surgical Center Service Reimbursement (Federal Register, August 14, 1998)

Because of the complexity and scope of the proposed rule and because numerous members of the industry and professional associations have requested more time to analyze the potential consequences of the rule, HCFA has decided to extend the comment period for an additional 30 days. This document announces the extension of the public comment period to September 10, 1998.

June 12, 1998

HCFA Proposes changes to regulations for Ambulatory Surgical Center Service Reimbursement (Federal Register, June 12, 1998)

HCFA recently announced sweeping changes to existing Ambulatory Surgery Center (ASC) payment regulations. Under this change, reimbursement would follow Ambulatory Payment Classifications (APCs), which assign procedures to payment groups based on time, type of surgery and body system involved.

These proposed reimbursement rates are based on 1994 cost data submitted by 295 ASCs in response to HCFAs last survey on ASC facility overhead and procedure specific charges. HCFA officials have expressed disappointment in their lack of success in gathering usable resource cost data from the 1994 ASC survey.

Overall, the proposal threatens an ASC's ability to offer comprehensive, technologically advanced, ambulatory surgical care to Medicare beneficiaries. Significant and potentially devastating changes are proposed.

Since the proposed reimbursement rates do not take into consideration the costs of new minimally invasive surgical technologies introduced after the 1994 ASC survey, such as new breast biopsy and endometrial ablation technologies, this proposal could result in denied access to women seeking these ambulatory procedures at an ASC.

Reimbursement reductions are proposed for many ambulatory surgical procedures including such high-volume procedures as cataract surgery, gastrointestinal and urinary tract endoscopies, and both excisional and incisional breast biopsy.

 

  Find out more about the HCFA Proposal's impact on Women's Health

 

  Find out what you can do to get revisions made to this proposal before it is approved

 

For more information contact USSC's Health Policy & Reimbursement Hotline

(800) 336-0263