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Affordable Care Act and Federal Policy Update Barbara Gay Director of Governmental Affairs LeadingAge April 16, 2014 Affordable Care Act • Outlook for continuation • Provisions of particular interest/concern to LeadingAge • What you can do. ACA Outlook • House repeal strategies • Senate composition after 2014? • President Obama veto pen through 2016 – then? • Enrollment process less than stellar • Delays in mandates ACA Outlook • Growing stake in the program – Over 6 million enrolled – 19 states expanded Medicaid, 5 more through use of Medicaid to buy private insurance – Adult children – People with pre-existing conditions – Initiatives to reform health and long-term care delivery system to bring down costs Affordable Care Act Themes • Pay for value, not volume • Better integration of services • More home- and community-based service options • Avoid hospitalizations and rehospitalizations • Application of technology • Workforce development ACA Employer Mandate • New deadline for employers with between 50 and 99 employees – January 1, 2016 • Larger employers, 100+ employees – January 1, 2015 • Applies to employees working 30 or more hours/week • Information for employees and employers on LeadingAge website: http://www.leadingage.org/Legal.aspx Accountable Care Organizations • Delivery system reform: – Integrate services – Greater efficiency, fewer avoidable services – Group at risk for all beneficiary costs – Potential Medicare/health care savings • More than 360 nationwide • 5.3 million Medicare beneficiaries covered • Concept flexible, many varying configurations possible for the future ACOs - Structure • Beneficiaries don’t enroll, not restricted to any network, may not know they’re in an ACO • Typical anchor – hospital, health plan, physician group • ACOs contract with CMS to provide services at agreed-upon spending targets • ACO can pocket savings for spending below targets • 33 quality indicators ACOs – 3 Models • Shared Savings – the basic plan, chosen by majority of ACOs • Advance Payment – helps smaller ACOs with less capital with initial investment in staff and infrastructure • Pioneer – ACO assumes more risk with potential for greater reward ACO Pioneer Model A Cautionary Tale • More risk, more reward • 32 organizations chosen for 3 year program; 9 dropped out after 1 ½ years • $87.6 million Medicare savings after 1 year • Slower rate of spending growth/beneficiary – 0.3% vs. 0.8% in traditional Medicare • 13 Pioneers saved enough to share with Medicare • 2 Pioneers owed Medicare $4 million ACOs Tools to Achieve Savings • • • • • Provider quality and cost data Care coordination, including transitions Discharge planning/case management Wellness, prevention, disease management Bottom line – outcomes, not volume of services ACOs Be the Solution • Anticipate needs and develop quality measures: – Hospital readmissions – Falls – Pressure wounds – Medication adverse events • Special services – stroke rehab, wound care • Processes for managing care transitions • Doc – doc dialogue • LeadingAge Insights can help! Bundling • “Bundles” payment across provider types for a single episode of care • Incentive for providers to coordinate services and continuity of care – Four approaches in Request for Applications – 1) Hospital stay – 2) Hospital stay plus post-acute care – 3) Post-acute care following hospital stay – 4) Prospective payment for all services during hospital stay Hospital Readmissions Reduction • Hospitals’ Medicare reimbursement cut if they have higherthan-average readmission rates for “applicable conditions” • Program began with 3 “applicable conditions” – – Acute myocardial infarction – Heart failure – Pneumonia • Beginning in 2015, other conditions likely to be added • Opportunity for post-acute care providers to help hospitals reduce their readmission rates • LeadingAge Insights! QAPI for Nursing Homes • Quality Assurance and Performance Improvement programs • Required for all nursing homes within a year of final regulation’s publication • CMS developed on-line resource library and other tools for facilities to set up programs • Reg may come out this year • Tools: Advancing Excellence, Quality First Dual Eligibles • Medicaid waiver available for up to 5 years, can be renewed • Goal: better integration of benefits and administration by states/CMS • Concerns – Access to essential services – Health plan experience with special needs of longterm services and supports population ACA Transparency Requirements • On request of Secretary, HHS Inspector General, the states, or LTC ombudsman, SNF/NF must provide description of facility’s – governing body and organizational structure – information regarding additional disclosable parties • SNF/NF must operate a compliance and ethics program effective in preventing/detecting criminal, civil, and administrative violations Workforce • Authorizes geriatric education centers – Training for health care professionals and family caregivers in chronic care management • Expands geriatric care awards to advanced practice nurses, clinical social workers, other health professionals • Traineeships for those preparing for advanced degrees in geriatric nursing • Increase number of providers specializing in geriatrics and ensure more providers have geriatric training • Issue - funding And now, a few words about Medicare Medicare - Current Issues • “Doc fix” (SGR) – therapy caps • Observation days – H.R. 1179, S. 569 • Post-acute care payment reform Medicare “Doc Fix” Therapy Caps • Permanent “doc fix” to correct flawed physician payment formula, prevent large cuts in reimbursement still pending • Another temporary doc fix passed 3-31-2014 – H.R. 4302 – Lasts through March 31, 2015 Doc Fix – H.R. 4302 Post-acute care provisions: • Extends therapy caps exceptions process • Delays ICD-10 effective date until 10/1/2015 • Value-based purchasing for skilled nursing facilities Doc Fix/Therapy Caps • LeadingAge concerns – Therapy caps relief must be included in doc-fix legislation – Post-acute care should not be the pay-for • H.R. 4302 satisfied us on both counts Value-Based Purchasing for SNFs • CMS to develop SNF readmission measure by 10/1/2015 • By 10/1/2016, readmission measure refined to show risk-adjusted, potentially preventable readmissions • By 10/1/2019, readmission measures to be linked to value-based purchasing strategy. – Incentive payments for high performers; penalties for low performers. Value-Based Purchasing LeadingAge Concerns • CMS should allow stakeholder input in development of readmission measures • Measures must be risk adjusted at: – Nursing home level (homes serving lower-income populations, for example) – Beneficiary level (complex care needs) Hospital Readmission Rates • Begin tracking your rates now • Put quality improvement systems in place to identify opportunities to reduce preventable hospitalizations. • Advancing Excellence has a tool: https://www.nhqualitycampaign.org/star_ind ex.aspx?controls=hospitalizationsidentifybasel ine Medicare Observation Days • H.R. 1179/S. 569 – Time spent in a hospital under observation counts toward the 3-day stay requirement – Beneficiaries leaving the hospital after a period of observation are to be considered to have been discharged. • Urging members of Congress to cosponsor 3 Day Stay Requirement • H.R. 3144 would repeal. No cosponsors, little chance of passage • Integrated systems at risk for all patient costs already excepted from the rule • CMS can do pilots allowing patients to receive skilled medical services in nursing homes • CMS lacks infrastructure to monitor potential “churning” of patients between long-stay and skilled care levels within a nursing home Medicare Post-Acute Care Reform Finance-Ways and Means Chairs’ letter 6/19/13: • Too much variation in per-beneficiary Medicare spending on post-acute care • No guidelines on types of “patients” appropriate for each setting • Different payment rates to different provider types for patients with similar conditions • MedPAC, Obama Administration, other experts have called for payment reform Ways and Means/Finance Concerns • Specific areas of interest: – Quality – comparing across settings – Value-Based Purchasing – Reducing Hospital Readmissions – Bundled Payments – Site Neutral payments LeadingAge Comments • Well-integrated post-acute care will eliminate inappropriate use of expensive services • Essential to determine needs across settings • Medicare spending per beneficiary already growing more slowly • Take a broader view of post-acute care and its funding mechanisms (say the word “Medicaid”) • Eliminate silos between acute, primary, specialty and post-acute providers IMPACT Proposal • Improving Medicare Post-Acute Care Transformation – “IMPACT” • Issued by Ways and Means and Finance Committees March 18 • Outlook? Little time left in the present congressional session • Committee staff indicate committee action possible early summer • Never say never. IMPACT Proposal Standardized assessment data • From SNFs, home health, IRFs, long-term care hospitals by 2016 • Eventually to include hospitals, cancer hospitals, critical access hospitals (by 2019) • Data to include patient functional status, cognitive function, special services, etc. • CARE tool? IMPACT Act • Quality measure reporting – Functional status changes, skin integrity, med reconciliation, etc. • Resource use measures from claims data -> per-beneficiary spending • All data to be publicly reported by 2017-2018. • SNF Quality Reporting program by 2019, 2% penalty for failure to comply IMPACT Proposal • LeadingAge questions: – OASIS and MDS revised or replaced? – Nursing home oversight system? – Risk adjustment needed to account for varying care needs • Ultimately proposal envisions standard payment system based on individual needs, rather than setting in which provided. What You Can Do • Make it real for policymakers – how do their policies affect your residents, staff and community • Cultivate relationships • Tell your story • Tools – LeadingAge website, Contact Congress, staff