As Denials Climb, MACPAC Approves Recommendations for Managed Care Oversight 

McKnight’s Home Care | By Adam Healy

The Medicaid and CHIP Payment Advisory Commission on Friday approved seven recommendations to enhance congressional oversight of Medicaid managed care organizations as recent reports reveal startlingly high rates of prior authorization denials.

MACPAC’s recommendations aim to improve the prior authorization and appeals process by requiring MCOs to report relevant data to the Centers for Medicare & Medicaid Services. CMS would be required to release public reports on the data, as well as update regulations and create additional guidelines for MCOs’ use of prior authorization.

recent investigation by the Office of the Inspector General found that 12.5% of prior authorization requests were denied by Medicaid MCOs, and about 2.7 million Medicaid beneficiaries were enrolled in MCOs with denial rates greater than 25%.

Thousands of prior authorization requests for elderly, chronically ill or disabled patients requiring home care were denied by MCOs, according to the report. 

“Few denials are appealed and little is known about the beneficiary experience,” Lesley Baseman, senior policy analyst at MACPAC, said during the Thursday meeting. “The appeals process is also challenging and burdensome for beneficiaries. Denial notices can be late in the mail and the content is often unclear, and beneficiaries encounter multiple barriers in accessing continuation of benefits.”

Part of the challenge, OIG’s investigation found, was that few guidelines for MCOs’ prior authorizations requests are currently in place.

States are not federally required to collect data on denials, continuation of benefits, or appeals outcomes, according to Baseman. Federal rules do not require states to assess clinical appropriateness of denials, she said, and they do not require that states publicly report information on denials and appeal outcomes.

OIG’s report also found that many MCOs employed staff who were not qualified to approve or deny requests, and most states lack safeguards to identify improper prior authorization denials.

 

Federal Scientists Conclude There is Credible Evidence for Certain Medical Uses of Marijuana

Politico | By Natalie Fertig

The Department of Health and Human Services concluded that marijuana is less harmful than other dangerous drugs and that there is some evidence of its medical benefits in recommending loosening federal restrictions on the drug.

The agency on Friday released a 252-page review outlining the reasoning that the Food and Drug Administration used to come to this conclusion. This and the other findings of the review are a major departure in how the federal government views cannabis. For the last 60-plus years, cannabis has been classified as a Schedule I drug — the same as heroin — under the Controlled Substances Act, which means it’s a substance of high abuse potential and no accepted medical use.

The review was conducted at the request of President Joe Biden, who instructed HHS in an executive order issued in October 2022 to look through all available research on cannabis and recommend if the drug should be moved within the list of federally controlled drugs or removed from it altogether. Bloomberg first reported in August that HHS had recommended marijuana be moved to Schedule III, and the release of these documents on Friday confirms that.

 

The Drug Enforcement Administration will have the final say in any changes to marijuana’s classification under federal law, with a decision expected in the coming months.

The documents were released to cannabis lawyers Matt Zorn and Shane Pennington and published on their blog On Drugs. The documents were released as a result of a lawsuit brought by Zorn and Pennington.

Cannabis legalization has spread rapidly across the country over the last decade. Two dozen states — representing more than half the U.S population — have legalized possession and use for adults, while 38 states have established medical marijuana programs.

The cannabis review was based on eight different scientific criteria, including its potential for abuse, the state of current scientific knowledge and the likelihood of psychological or physiological dependence.

 

Hospice Fraud Back In The Spotlight, With New Data Also Raising Questions About Home Health Care

Home Health Care News | By Robert Holly
 
The number of hospice providers enrolled in the Medicare program in four states has skyrocketed over the past few years. The jaw-dropping spike, in turn, has triggered increased oversight efforts – some of which may not be having the desired effect.
A similar trend could be happening in home health care in one major county, U.S. Centers for Medicare & Medicaid Services (CMS) data suggests.
 
In hospice, the surge of new providers and potentially fraudulent activities has been concentrated in Arizona, California, Nevada and Texas. In home health care, it’s Los Angeles County.
 
After becoming aware of the data on new hospice openings and following a series of scathing media reports, CMS implemented a Special Focus Program (SFP), effective Jan. 1, while also finalizing a new rule forbidding change in majority ownership during the 36 months after initial Medicare enrollment, including acquisitions, stock transactions or mergers.
 
In August, the agency additionally announced it was considering administrative action against 400 hospices.
 
“Unfortunately, hospices are profiting from fraud at the expense of beneficiaries far too often,” CMS said at the time.
 
Meanwhile, some of the aforementioned states have pushed forward stronger rules and regulations, too. For example, in 2021, California passed two reform laws that included a moratorium on new hospice provider licenses until the state health department weeded out bad actors.
 
A California Department of Justice (CDOJ) report detailing the state’s history of lax oversight helped fuel that initiative. 
 
“The state’s weak controls have created the opportunity for large-scale fraud and abuse,” CDOJ indicated in its report.
 
Back in the spotlight
 
Hospice fraud and the related oversight efforts were back in the spotlight last week, when ProPublica reported that new hospices in California are still receiving Medicare certification with clear instances of fraud happening in the other states as well.
In one instance last year, 15 new hospices received Medicare certification, all operating from the same two-story building in Los Angeles, according to ProPublica.
 
In another: A location in Phoenix was approved for three new hospice licenses, all at the same location as dozens of other new providers in the previous two years.
According to a review of Medicare claims data shared with Home Health Care News and Hospice News, California had 102 newly enrolled hospices in 2023. In Arizona, the number of new hospices increased by 25 during the same period, while Texas and Nevada saw 72 and 25 new providers, respectively.
 
Across the board, no other state experienced an influx of more than 15 new hospices, with most states reporting single-digit enrollment figures.
 
In total, approximately 69% of all newly licensed hospices in 2023 were situated in Arizona, California, Nevada and Texas.

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Minor Hospice Cost Report Changes

The Health Group 

The U.S. Centers for Medicare and Medicaid Services (“CMS”) has released minor changes to the Hospice Cost & Data Report (“Cost Report”).

The changes are as follows:

  • The Cost Report now provides for indication that the filing is a no Medicare utilization filing, if applicable.
  • Effective beginning January 1, 2024, hospice accounting records should segregate the costs of marriage and family therapy services and mental health counseling services.  These costs are to be reported with other counseling services (line 36 of Worksheets A-1, A-2, A-3, and A-4).
  • Cost Report Level 1 Edit – Worksheet S must identify the cost report submission as a full, low, or no utilization filing.
  • Cost Report Level 2 Edit – Worksheet A, column 7, line 2 (Capital-Related Costs – Movable Equipment) must include a cost entry more than $0.

The Cost Report cannot be submitted electronically if the report contains any Level 1 Edits.

 

Elon Musk Says the First Human has Received an Implant from Neuralink, but Other Details are Scant

MedicalXpress | By WYATTE GRANTHAM-PHILIPS and LAURA UNGAR

According to Elon Musk, the first human received an implant from his computer-brain interface company Neuralink over the weekend.

In a Monday post on X, the platform formerly known as Twitter, Musk said that the patient received the implant the day prior and was "recovering well." He added that "initial results show promising neuron spike detection."

The billionaire, who co-founded Neuralink, did not provide additional details about the patient. When Neuralink announced in September that it would begin recruiting people, the company said it was searching for individuals with quadriplegia due to cervical spinal cord injury or amyotrophic lateral sclerosis, commonly known as ALS or Lou Gehrig's Disease.

Neuralink is one of many groups working on linking the nervous system to computers, efforts aimed at helping treat brain disorders, overcoming brain injuries and other applications. There are more than 40 brain computer interface trials underway, according to clinicaltrials.gov.

Neuralink reposted Musk's Monday post on X, but did not publish any additional statements acknowledging the human implant. The company did not immediately respond to The Associated Press' requests for comment Tuesday.

Neuralink previously announced that the U.S. Food and Drug Administration had approved its "investigational device exemption," which generally allows a sponsor to begin a clinical study "in patients who fit the inclusion criteria," the FDA said Tuesday. The agency pointed out that it can't confirm or disclose information about a particular study.

Neuralink's device is about the size of a large coin and is designed to be implanted in the skull, with ultra-thin wires going directly into the brain. In its September announcement, Neuralink said the wires would be surgically placed in a region of the brain that controls movement intention. The initial goal of the so-called brain computer interface is to give people the ability to control a computer cursor or keyboard using their thoughts alone.

In a separate Monday post on X, Musk said that the first Neuralink product is called "Telepathy"—which, he said, will enable users to control their phones or computers "just by thinking." He added that intial users would be those who have lost use of their limbs…

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