CMS Proposes PPC Medicaid Payment Reductions
Provider-preventable conditions (PPC) would receive a payment reduction under Medicaid, similar to the treatment of hospital-acquired conditions (HAC) by the Medicare program, under a proposed rule posted by CMS February 16.
The proposal comes on the heels of increased attention to Medicaid as a result of the Patient Protection and Affordable Care Act; previous months have seen a proposed expansion of the recovery audit contractor program to Medicaid and an extension of the National Correct Coding Initiative edits to Medicaid claims. Although some states already have Medicaid provisions to reduce payment for conditions that match the Medicare HACs, the new rule would require such payment reductions nationwide. States will also have the flexibility to individually designate additional conditions that would result in reduced payment.
This flexibility may be a concern to Medicaid providers, says Debbie Mackaman RHIA, CHCO, regulatory specialist for HCPro, Inc., in Danvers, MA. “They’re giving Medicaid a long leash on this. This opens a huge window that allows them to create new restrictions on payments that are already minimal.” Importantly, CMS would allow states to expand beyond the inpatient setting, to include outpatient hospitals, nursing facilities, and ambulatory care settings.
PPCs would be divided into two types:
- Healthcare-acquired conditions (HCAC), which would track the HACs identified for Medicare
- Other provider-preventable conditions (OPPC), which states could specify as extensions of the payment reduction program
- Primary Care Docs Average More Hospital Revenue Than Specialists
- How Chargemaster Data May Affect Hospital Revenue
- $6.4B Henry Ford, Beaumont Merger Failed on Cultural Hurdles
- House Lawmakers Grill CMS Over Health Exchange Navigators
- Fortunately, Angelina Jolie Isn't On Medicare
- ED Physicians Key to Half of Hospital Admissions
- Don't Let Nurses Sink Your Bottom Line
- Insurer's App Aims to Lower Healthcare Costs, Securely
- 69% of Employers Plan to Offer Healthcare Coverage After 2014
- Hospital Pricing Irks Nurses; More Jobs, Less Pay