FY 2022 Final Rule A discussion on Rates and Quality - Dr. Sherita Castille Clinical Pharmacist Partner - Hospice Pharmacy Solutions
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FY 2022 Final Rule A discussion on Rates and Quality Dr. Sherita Castille Clinical Pharmacist Partner October 28, 2021
2 Objectives Overview of CMS FY 2022 Finale Rule Review the hospice wage index & payment updates Review the aggregated cap amount for FY 2022 Review revised Labor Share rate Discuss the finalized text changes to the addendum implemented on October 1, 2020 Overview of Quality Reporting Changes
3 Please Note • Sherita Castille has no financial conflicts to disclose • The views, information, and guidance in this webinar are those of the presenter • The information may be incomplete and HPS does not make any guarantees or warranties concerning the information contained in this resource • If expert assistance is required, please seek the services of CMS
4 Seeing the Big Picture HOSPICE • Providing patient centered, cost-effective care utilizing an interdisciplinarian team approach • Balancing hospice services versus palliative services CMS • Providing consistent regulatory guidance for cost containment • Increase coverage transparency and quality of hospice providers HPS • Pain and symptom management consultations 24/7 • General drug information guidance: availability, costs, cost-effective alternatives, adverse effects, etc. • Educational Resources: Pathways to Success
6 Summary at a Glance On August 4, 2021, the Federal Register published the Final Rule on Hospice Wage Index, Payment Rates and Aggregate Cap Amount for Fiscal Year 2022. These Regulations are effective on October 1, 2021 • Rate increase of 2% for FY2022, effective October 1, 2021 – Economic impact of this rule is estimated to be 480 million in increased payment to Hospice for FY 2022 • Updates to Labor shares of hospice payment rates and the Hospice Quality Reporting Program • Clarity on text changes to the election statement addendum that was implemented on October 1, 2020 • The rule may permanent blanket waivers for Hospice agencies and were implemented during the COVID-19 public health emergency providing revisions to Hospice conditions of participation (CoPs) • Updated CAHPS to Consumer Assessment of Healthcare Providers and Systems (CAHPS) Star ratings and addressed further development of Hospice Outcome and Patient Evaluation (HOPE)
7 FY 2022 Hospice Payment Rates With Quality Reporting Code Description FY 2021 SIA Budget Wage Index Labor Share FY 2022 FY 2022 Payment rates Neutrality Standardization Standardization Hospice Payment *(Includes Factor Factor Factor Payment Rates rebase) Update 651 Routine $199.25 X 1.0003 X 1.0001 X 0.9995 X 1.02 $ 203.40 Home Care (Days 1-60) 651 Routine $157.49 X 1.0005 X1.0009 X 0.9992 X 1.02 $160.74 Home Care (Days 61+) 652 Continuous $1,432.61 X 1.0004 X 1.0006 X 1.02 $1,462.52 Home Care ($59.69/ hourly ($60.94/ Full Rate 24 rate) hourly rate) hours of care 655 Inpatient $461.09 X 1.014 X 1.0059 X 1.02 $473.75 Respite Care 656 General $1,045.66 X 1.0019 X 0.9997 X 1.02 $1,068.28 Inpatient Care
8 FY 2022 Hospice Payment Rates Without Quality Reporting Code Description FY 2021 SIA Budget Wage Index Labor Share FY 2022 FY 2022 Payment rates Neutrality Standardization Standardization Hospice Payment *(Includes Factor Factor Factor Payment Rates rebase) Update 651 Routine $199.25 X 1.0003 X 1.0001 X 0.9995 X 1.00 $ 199.41 Home Care (Days 1-60) 651 Routine $157.49 X 1.0005 X1.0009 X 0.9992 X 1.00 $157.58 Home Care (Days 61+) 652 Continuous $1,432.61 X 1.0004 X 1.0006 X 1.00 $1,433.84 Home Care ($59.69/ hourly ($59.97/ Full Rate 24 rate) hourly rate) hours of care 655 Inpatient $461.09 X 1.014 X 1.0059 X 1.00 $464.46 Respite Care 656 General $1,045.66 X 1.0019 X 0.9997 X 1.00 $1,047.33 Inpatient Care
9 Hospice Cap for 2022 • The aggregate hospice cap amount for FY 2022 is $31,297.61 • This amount is set by the Centers for Medicare and Medicaid services each year. It is the maximum amount that a hospice will be reimbursed for Medicare hospice service. • The GIP cap limits the number of days of inpatient care for which Medicare will pay to 20 percent of a hospice's total Medicare patient care days • If your overall per patient amount exceeds the annual cap amount the difference must be repaid. • If you have a significant number of patients who have long term stays seek the guidance of CMS.
Top 20 Principal Hospice 10 Diagnoses FY2019 Hospice Diagnosis Trends G30.9 - Alzheimer's disease, unspecified G31.1 – Senile degeneration of brain not elsewhere classified J44.9 – chronic obstructive pulmonary disease, unspecified
11 Hospice Length of Stay Trends Fiscal Years 2016 to 2019
12 FY 2022 Hospice Payment Rates With Quality Reporting Code Description FY 2021 SIA Budget Wage Index Labor Share FY 2022 FY 2022 Payment rates Neutrality Standardization Standardization Hospice Payment *(Includes Factor Factor Factor Payment Rates rebase) Update 651 Routine $199.25 X 1.0003 X 1.0001 X 0.9995 X 1.02 $ 203.40 Home Care (Days 1-60) 651 Routine $157.49 X 1.0005 X1.0009 X 0.9992 X 1.02 $160.74 Home Care (Days 61+) 652 Continuous $1,432.61 X 1.0004 X 1.0006 X 1.02 $1,462.52 Home Care ($59.69/ hourly ($60.94/ Full Rate 24 rate) hourly rate) hours of care 655 Inpatient $461.09 X 1.014 X 1.0059 X 1.02 $473.75 Respite Care 656 General $1,045.66 X 1.0019 X 0.9997 X 1.02 $1,068.28 Inpatient Care
13 Labor Share Updates for 2022 History: Did you know the last rebase for labor shares was in 1984? At the time the benefit was calculated using the wage/non-wage proportions CMS implemented in home health agency and skilled nursing facility cost. • Continuous Home Care (CHC) and Routine Home Care (RHC) were 68.71% • Inpatient Respite Care (IRC) and General Inpatient Care (GIP) were 54.13% Goal: Rebase and revise LS cost based on the different levels of care. To achieve this CMS evaluates 5 components that drive cost • Direct Salaries and Contract • Overhead salaries cost • Overhead benefit cost • Direct patient benefit cost • Other patient care salaries
14 Labor Share Updates for 2022
15 CLIENT PBM Training Quality Reporting
16 Addendum to the EOB
17 Addendum Clarification CMS 2022 Final Rule will allow Hospice to furnish the addendum within 5 days from the date of a beneficiary or representative requests , if the request is within 5 days from the date of a Hospice election Centers for Medicare For example, if the patient elects Hospice on &Medicaid Services June 1st and request the addendum on June 3rd , the Hospice would have until June 8th to furnish the addendum. If the addendum is requested as care is proceeding, the addendum must be provided within three days. This was changed from the 2021 hospice proposed rule of 72 hours.
18 2022 Final Rule Updates - Refusal to Sign “If a patient or representative refuses to sign the addendum, the Hospice must document clearly in the medical record (and on the addendum itself ) the reason the addendum is not signed in order to mitigate a claim denial for this condition for payment. In such a case, although the beneficiary has refused to sign the addendum, Centers for Medicare the ‘date furnished’ must still be within the required timeframe &Medicaid Services (that is, within three or five days of the beneficiary or representative requests, depending on when such a request was made), and noted in the chart and on the addendum itself .” CMS is clarified that if a non-Hospice provider requests the addendum, rather than the beneficiary or representative, the non- Hospice provider is not required to sign the addendum.”
19 2022 Final CoP Updates – COVID 19 Waivers Hospice changes were finalized to the hospice aide competency evaluation standards were made permanent Hospice aide competency test once performed by observing Centers for Medicare a patient can now be assessed with a pseudo-patient, a &Medicaid Services person trained to participate in a role play situation or a computer- based mannequin device instead of actual patients If a concern is identified Hospice will be allowed to complete a competency evaluation for the deficient skill and or related skills instead of completing a full evaluation
20 How to Stay Protocol Perfect Know what is on the quality menu o HIS – Hospice Item Set o CAHPS (with Star Ratings on Compare Care) o HCI – Hospice Care Index o HVLDL – Hospice Visits in the Last Days of Life o HOPE – Hospice Outcome and Patient Evaluation (Coming Soon!)
21 Quality Reporting Then HQRP HIS CAHPS Consumer Assessment Hospice Quality Hospice Item Set of Healthcare Providers Reporting Program & Systems • Patient level data collection • National Survey of family tool developed by CMS members or friends • Hospices are required to • Conducted monthly submit an HIS Admission and Discharge record for all patients
22 The HQRP Life Cycle Annual Payment Update (APU) Calculations Year 1: Data collection and submission Year 2: Compliance determinations Fiscal Year (FY): APU in effect
23 Quality Reporting Now Administrative Administrative HQRP HIS CAHPS Data Claims Data Claims HCI HVLDL CMS is preparing for HQRP data to be publicly reported in January 2022. It will contain additional quality measures that capture care across the hospice stay, including a new measure called the Hospice Care Index. Additionally, the claims-based Hospice Visits in the Last Days of Life (HVLDL) measure will be collected.
24 Hospice Item Set FY 2022 Updates Seven measures from the Remember Comprehensive Assessment The threshold for HIS is 90%. Measure section was removed Timely submission alone Submission still required does not equal compliance. Removal of measures will be no earlier than May 2022 CMS resource: Timeliness Hospices that do not report HIS Compliance Threshold Fact data will not meet the Sheet https://orbit.texthelp.com/?file=https://www.cms.gov/fi requirements for compliance les/document/timeliness-compliance-threshold-his- submissions-fact-sheetaugust2021.pdf with HQRP
25 Hospice Care Index Includes 10 indicators of quality that are calculated from claims data Continuous Home Care (CHC) or Burdensome transitions (Type 2 ) General Inpatient Provided (GIP) live discharges from hospice Gaps in nursing visits followed by hospitalization with the Early live discharges patient dying in the hospital Late live discharges Per – beneficiary Medicare Burdensome transition (Type 1 ) spending live discharges from Hospice Nurse care minutes per routine followed by hospitalization and home care (RHC) day subsequent hospital readmission Skill nursing minutes on weekends Visits near death
26 HQRP Quality Measure Summary HIS Comprehensive Assessment The proportion of patients for whom hospice preformed all 7 care Measure at Admission and processes as applicable. Discharge
27 HQRP Quality Measure Summary HIS Comprehensive Assessment The proportion of patients for whom hospice preformed all 7 care Measure at Admission and processes as applicable. Discharge HVLDL The proportion of patients that have received in-person visits from Claims Based Registered Nurse or Social Worker on at least 2 out of the 3 final days of life.
28 HQRP Quality Measure Summary HIS Comprehensive Assessment The proportion of patients for whom hospice preformed all 7 care Measure at Admission and processes as applicable. Discharge HVLDL The proportion of patients that have received in-person visits from Claims Based Registered Nurse or Social Worker on at least 2 out of the 3 final days of life. HCI A single measure comprising of 10 indicators calculated from Medicare Claims Based claims
29 HQRP Quality Measure Summary HIS Comprehensive Assessment The proportion of patients for whom hospice preformed all 7 care Measure at Admission and processes as applicable. Discharge HVLDL The proportion of patients that have received in-person visits from Claims Based Registered Nurse or Social Worker on at least 2 out of the 3 final days of life. HCI A single measure comprising of 10 indicators calculated from Medicare Claims Based claims CAHPS Survey of family members or All 8 CAHPS measures are endorsed under NFQ #2651 friends
30 Summary Overview of CMS updates Wage Index & Payment Rates Hospice Cap Amounts Rebase and Revised Labor Share Addendum Clarification Quality Reporting Changes
31 THANK YOU Questions?
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