Weekly Washington Healthcare Update: February 24, 2014

This Week: Proposed Medicare Advantage rates include payment reductions... Upcoming Energy and Commerce Committee hearing on Medicare Part D... CBO examines minimum wage proposals.

1. CONGRESS

   House

   Upcoming Energy and Commerce Hearing Explores Proposed Part D Changes

   On Feb. 26, the Energy and Commerce Subcommittee on Health will hold a hearing entitled "Messing with Success: How CMS' Attack on the Part D Program Will Increase Costs and Reduce Choices for Seniors." The hearing will likely focus on recent changes proposed by HHS, which Part D architects Energy and Commerce Chairman Upton (R-MI), Ways and Means Chairman Camp (R-MI) and Senate Finance Committee Ranking Member Hatch (R-UT) claim, in a letter to HHS Secretary Sebelius, will "fundamentally undermine the program." For more information, or to view the hearing, please visit energycommerce.house.gov.

   Oversight Subcommittee to Examine Illicit Suppliers of Rx Drugs

   On Feb. 27, the Energy and Commerce Subcommittee on Oversight and Investigations will hold a hearing entitled "Counterfeit Drugs: Fighting Illegal Supply Chains." Witnesses to be announced. For more information, or to view the hearing, please visit energycommerce.house.gov.

   Senate

   Upcoming HELP Committee Hearing on Mental Health Treatment Options

   On Feb. 25, the HELP Committee will hold a hearing entitled "Examining Mental Health: Treatment Options and Trends." The hearing will take place at 10 a.m. in 430 Dirksen Senate Office Building.

   Witnesses:

   William O. Cooper, M.D., M.P.H. Professor of Pediatrics Vanderbilt University Medical School

   Benjamin S. Fernandez, M.S. Ed. School Psychologist Loudoun County Public Schools, Ashburn, VA

   John K. Arch, FACHE Executive Vice President of Health Care and Director Boys Town National Research Hospital and Clinics

   Tiffany Martinez Student University of Southern Maine

   For more information, or to view the hearing, please visit: www.help.senate.gov.

2. ADMINISTRATION

   Medicare Suspending RAC Document Requests Pending New Contracts

   The Centers for Medicare and Medicaid Services announced on Feb. 18 that Feb. 21 would be the final day for recovery account contractors (RAC) to send additional documentation requests for claims reviews until the agency finalizes its procurement process for new RAC contracts. This administrative hold allows CMS to finish its current RAC contracts and encourages current RACS to complete their outstanding claims reviews. CMS also said the suspension would help efforts to improve the RAC program by "reviewing the Addition Documentation Request (ADR) limits, timeframes for review, and communications between Recovery Auditors and providers." Also released in the announcement were some changes to the RAC program to be instituted with new contracts, which are expected to run from 2014 until 2018. One of the most important rule changes requires that RACS wait 30 days after making a claims determination before sending the claim to the Medicare Administrative Contractors (MACs), which gives providers the opportunity to choose between starting a discussion or an appeal. RAC contracts were supposed to expire in February; however in January CMS extended contracts for several months.

   Proposed Medicare Advantage Rates for 2015 Include Sizable Reductions

   On Feb. 21, CMS announced planned changes in the...