HHS Launches New Oncology Care Model
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HHS Launches New Oncology Care Model The Department of Health and Human Services (HHS) on February 12 announced a new care delivery model to support better care coordination for cancer care called the Oncology Care Model (OCM). This initiative is the second program announced as part of HHS' new "better care, smarter spending, healthier people" approach to healthcare and promotes models of care developed by the Centers for Medicare & Medicaid Innovation (CMMI). The OCM is a multi-payer model in which practices will enter into payment arrangements that include financial and performance accountability for episodes of care surrounding chemotherapy administration to cancer patients. This model aims to provide higher quality, more highly coordinated oncology care at a lower cost. It is a five-year model that will begin in spring 2016. MARCH 2015 The OCM intends to improve health outcomes, produce higher quality care, and lower costs by utilizing aligned financial incentives such as performance-based payments to: Improve care coordination; Ensure appropriateness of care; and Increase access for beneficiaries receiving chemotherapy. The goal of the OCM is to reduce healthcare costs as participating practices more effectively address the complex care needs of the cancer patients, increase use of high value services, and decrease use of unnecessary services. According to CMS, "The Oncology Care Model encourages participating practices to improve care and lower costs through episode-based, performance-based payments that financially incentivize high-quality, coordinated care. Participating practices will also receive monthly care management payments for each Medicare fee-for-service beneficiary during an episode to support oncology practice transformation, including the provision of comprehensive, coordinated patient care." Oncology group practices and individual practitioners who provide chemotherapy treatment to cancer patients and are currently enrolled in the Medicare program are eligible to participate in the initiative; however, they must meet the following criteria: Provide the core functions of patient navigation; Document a care plan that contains the 13 components in the Institute of Medicine Care Management Plan outlined in the Institute of Medicine report, "Delivering High-Quality Cancer Care: Charting a New Course for a System in Crisis"; Provide 24 hours a day, 7 days a week patient access to an appropriate clinician who has real-time access to practice's medical records; Treat patients with therapies consistent with nationally recognized clinical guidelines; Use data to drive continuous quality improvement; and Use an ONC-certified electronic health record and attest to Stage 2 of meaningful use by the end of the third model performance year. PAGE 2 To apply for participation in the OCM, practices and payers must submit Letters of Intent (LOIs) to CMMI. LOIs for interested practices are due by 5:00 pm EDT on April 23, 2015. The names of applicants submitting LOIs will be posted publicly to facilitate cooperation between payers and practices prior to model implementation. Providers that submit timely, complete letters of intent (LOIs) will be eligible to submit applications for OCM participation. All applications must be submitted by 5:00 pm EDT on June 18, 2015. For OCM application materials and submission deadlines, click here. To read the CMS press release on the initiative, click here. To download the CMS Fact Sheet, click here. President Obama Releases FY2016 Budget Proposal President Obama released his FY2016 Budget on February 2, which totaled $4 trillion and included more than $400 billion in Medicare cuts. The President's Budget also proposes changes related to the Medicare physician payment system and payment parity reforms for services provided in both the hospital outpatient department and physician office setting. Regarding these proposals, the Budget specifically states: Reforming Medicare Physician Payments to Encourage High-Quality, Efficient Care Cost Estimate: $44 billion over 10 years The Budget adopts the following policies for reforming the way Medicare pays physicians, consistent with recent bipartisan, bicameral legislation: Terminates the Sustainable Growth Rate formula for updating physician payments; Provides a period of stability while promoting participation in alternative payment models that encourage high quality, efficient care; and Streamlines value-based incentives for those physicians remaining outside of alternative payment models. Encourage Efficient Care by Improving Incentives to Provide Care in the Most Appropriate Ambulatory Setting Savings Estimate: $29.5 billion over 10 years The Budget proposes to improve incentives to provide ambulatory care in the most appropriate clinical setting. Evidence suggests that, in recent years, billing of many ambulatory services has been shifting from physicians' offices to the usually higher-paid hospital outpatient department setting, increasing Medicare spending and beneficiary cost-sharing. This proposal helps mitigate the financial implications of this trend by lowering payment for services provided in off-campus hospital outpatient departments under the Outpatient Prospective Payment System to either the Medicare Physician Fee Schedule-based rate or the rate for surgical procedures covered under the Ambulatory Surgical Center payment system. These changes would be phased in over four years beginning in CY 2017, and Secretarial authority would be provided to adjust payments in the event beneficiary access problems arise. PAGE 3 Other Medicare provisions are included below: 10-year cost Medicare Providers (or savings) in $ billions Exclude radiation therapy, advanced imaging, pathology and therapy services from the in-office ancillary services exception unless a practice is clinically integrated and demonstrates cost con- (6.0) tainment Repeal the SGR in a manner consistent with the recent bipartisan, bicameral legislation 44 Incentivize care in the most appropriate ambulatory setting (29.5) Make permanent the Medicare primary care incentive payment; budget neutral --- Value-based purchasing for ASCs, SNFs, home health, HOPDs, and community mental health --- centers beginning 2017 Reduce bad debt payments (31.1) Align GME payments with patient care costs (16.3) Reduce payments for Part B drugs from 106% ASP to 103% (7.4) Reduce CAH payments from 101% of reasonable costs to 100% (1.7) Prohibit CAH designation for facilities less than 10 miles from nearest hospital (0.8) Reduce fraud, waste and abuse (1.8) Adjust payment updates for certain post-acute care providers (102.1) Encourage appropriate use of inpatient rehabilitation hospitals (2.2) Implement bundled post-acute care payments ($9.3) Extend accountability for hospital-acquired conditions --- To download the President's Budget Summary Tables, click here. To download the HHS FY2016 Budget in Brief, click here. CBO Increases SGR Replacement Cost by $30.5 Billion The Congressional Budget Office (CBO) released new price estimate for the bipartisan, bicameral proposal to repeal and replace the sustainable growth rate formula, or SGR, on February 5. The new estimates increased the cost by $30.5 billion from the projected costs released last November. The CBO estimates that the compromise legislation approved by the Senate Finance, House Energy & Commerce and House Ways & Means Committees last year would cost $174.5 billion from fiscal 2015 to 2025. In November, CBO put the price tag at $144 billion from fiscal 2015 to 2024. Physicians treating Medicare beneficiaries face an approximate 21 percent payment cut if Congress doesn't act before March 31. PAGE 4 To view the new CBO estimate, click here. Republicans Unveil Affordable Care Act Replacement Plan Senate Finance Chairman Orrin Hatch (R-UT), Senator Richard Burr (R-NC), and House Energy and Commerce Chairman Fred Upton (R-MI) unveiled the Patient Choice, Affordability, Responsibility, and Empowerment (CARE) Act, a legislative plan that repeals the Affordable Care Act (also known as Obamacare) and replaces the President's health care law with alternative reforms, on February 4. According to a press statement, the plan provides a "legislative roadmap" to repeal the President's health care law and replace it with "common-sense" measures to: Establish sustainable, patient-focused reforms Modernize Medicaid to provide better coverage and care to patients Reduce defensive medicine and rein in frivolous lawsuits Increase health care price transparency to empower consumers and patients Reduce distortions in the tax code that drive up health care costs Empower small businesses and individuals with purchasing power To read the Patient CARE Act Summary, click here. To read a two-page summary, click here. To see a comparison of Patient CARE with the Affordable Care Act, click here. CMS Approves Coverage for Lung Cancer Screening On February 5, the Centers for Medicare and Medicaid Services (CMS) announced it has made a final National Coverage Decision (NCD) for lung cancer screening for qualified beneficiaries, including annual screening for lung cancer with low dose computed tomography (LDCT). To be eligible for LDCT screening, beneficiaries must meet all of the following criteria: Age 55 – 77 years; Asymptomatic (no signs or symptoms of lung cancer); Tobacco smoking history of at least 30 pack-years (one pack-year = smoking one pack per day for one year; 1 pack = 20 cigarettes); Current smoker or one who has quit smoking within