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Articles Posted in Recovery Audit Contractors (RACs) and Medicare Appeals

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For Now, Medicare Beneficiaries Win Right to Challenge Certain Outpatient Observation Placement Orders

On March 24, 2020, the U.S. District Court for the District of Connecticut granted a class of Medicare beneficiaries the right to challenge their designation in hospitals as outpatients receiving observation services rather than as inpatients. In the case, Alexander v. Azar, the court ruled that the Department of Health…

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CMS Announces Inpatient Rehabilitation Facility (IRF) Appeals Settlement Initiative

On June 17, 2019, the Centers for Medicare & Medicaid Services (CMS) announced a settlement option for certain IRF appeals pending at any of the four fee-for-service Medicare administrative appeals levels: the Medicare Administrative Contractor (MAC), qualified independent contractor (QIC), the Office of Medicare Hearings and Appeals (OMHA) Administrative Law…

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Electronic Case Adjudication and Processing Environment (ECAPE) Update

The U.S. Department of Health and Human Services (HHS) Office of Medicare Hearings and Appeals (OMHA) has taken steps towards implementation of its long-anticipated Electronic Case Adjudication and and Processing Environment (ECAPE). ECAPE is designed to function as an electronic case management and workflow system that includes the following operations:…

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Labs, Clinical Treatment Facilities and Recovery Homes Subject to New All Payor Anti-Kickback Law

The Eliminating Kickbacks in Recovery Act of 2018 (“EKRA”) became effective October 24, 2018. ERKA makes it a criminal offense to knowingly and willfully offer, pay, solicit or receive any remuneration (i.e., anything of value), directly or indirectly, overtly or covertly, in cash or in kind, to induce a referral…

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Court Rules Medicare Appeals Backlog to be Eliminated by 2022

On November 1, 2018, the United States District Court for the District of Columbia issued a Memorandum Opinion, ordering the Medicare appeals backlog to be eliminated by FY 2022. Specifically, the court ordered that the Department of Health and Human Services (HHS) achieve the following reductions from the current backlog…

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CMS Revises Documentation Requirements for Inpatient Hospital Admission Orders

On Thursday, August 2, 2018, the Centers for Medicare & Medicaid Services (“CMS”) released its 2019 Inpatient Prospective Payment System and Long-Term Care Hospital Prospective Payment System Final Rule (the “2019 IPPS Final Rule”).[1]   With the goal to reduce unnecessary administrative burden on physicians and other qualified practitioners, the 2019…

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ALJ Appeals Adjudication Backlog Update: AHA’s Lawsuit Decided in Favor of Appellants

Relief will (eventually) be granted to Medicare appellants.  After a years-long battle, on December 5, 2016, the U.S. District Court of the District of Columbia granted mandamus relief to the American Hospital Association (“AHA”) and its co-plaintiffs. The Court requested that the parties propose actions the Secretary could take to…

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Recovery Auditor (RAC) Contracts Awarded

Following a lengthy dispute process and significant delays, on October 31, 2016, CMS awarded new Medicare Fee-for-Service RAC contracts to the following contractors: Region 1 – Performant Recovery, Inc. Region 2 – Cotiviti, LLC Region 3 – Cotiviti, LLC Region 4 – HMS Federal Solutions Region 5 – Performant Recovery…

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Medicare Appeals Delay Case Moves Forward

As many hospitals, as well as other health care providers and suppliers with pending requests for ALJ hearing are acutely aware, lengthy adjudication delays exist within the Medicare appeals process. These delays are most significant at the third level of appeal, i.e., the Administrative Law Judge (ALJ) stage of appeal.…

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AFIRM Act Seeks to Improve the Medicare Audit and Appeals Process

On December 9, 2015, Senate Finance Committee Chairman Orrin Hatch (R-Utah) and Ranking Member Ron Wyden (D-Ore.) introduced Senate Bill 2368, the Audit & Appeal Fairness, Integrity, and Reforms in Medicare (AFIRM) Act of 2015. The purpose and goal of AFIRM is to improve the Medicare audit and appeals process…