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January 29, 2018
VIA ELECTRONIC DELIVERY to http://www.regulations.gov
Mr. William N. Parham, III
Centers for Medicare & Medicaid Services
Office of Strategic Operations and Regulatory Affairs
Attention: Document CMS‐10661
Room C4‐26‐05
7500 Security Blvd.
Baltimore, MD 21244‐1850
Re: Comments on Document CMS‐10661: “Limit on Federal Financial Participation for Durable
Medical Equipment in Medicaid”
Dear Mr. Parham,
These comments regarding document CMS‐10661 are being submitted on behalf of the National
Coalition for Assistive and Rehab Technology (NCART). NCART is a national association of leading
suppliers and manufacturers of Complex Rehab Technology (CRT) products. Our members operate over
350 Medicaid supplier locations across the country, serving tens of thousands of Medicaid beneficiaries
in their communities.
NCART works with legislators, policy makers, and third‐party payers to ensure individuals with significant
disabilities and chronic medical conditions have adequate access to CRT products and related services.
CRT products include medically necessary and individually configured manual wheelchairs, power
wheelchairs, seating systems, and other specialized adaptive equipment. This specialized equipment
requires evaluation, configuration, fitting, adjustment, or programming to meet the medical needs of
people with disabilities and maximize their function and independence.
Adequate access to CRT not only provides function and independence, but also plays a key role in
keeping health care costs down by reducing medical complications, clinical interventions,
hospitalizations, institutionalizations, as well as caregiver assistance and additional services.
We appreciate the opportunity to submit public comments on document CMS‐10661 regarding the
“Limit on the Federal Financial Participation” (LFFP) and provide our comments and recommendations
below:
1.) To date, CMS’ publication and implementation of this 21st Century Cures Act provision has created
a great deal of uncertainty and confusion amongst State Medicaid Departments and Durable
Medical Equipment (DME) and CRT suppliers. The first note on this issue is that the official
Medicaid Directors Letter from CMS was not issued until December 27, 2017. That was just 4 days
before this provision was to go into effect. In addition, we are 29 days past the effective date and
COMPLETE information and instructions are still not available. Missing information includes
_____________________________________________________________________________________
54 Towhee Court, East Amherst, New York, 14051 | 716‐839‐9728 | WWW.NCART.US
NCART Comments re CMS‐10661 ‐ January 29, 2018 Page 2
critical details such as: the list of specific DME codes that will be impacted; and a full identification
of the options a state has under the LFFP provision. Confusing information includes such things
as: giving the impression that this impacts all DME codes, not a limited number; and not fully
accounting for the differences that exist between the coding and payment methods of the
national Medicare fee schedule and each of the 50 state Medicaid fee schedules. Such things as
rental vs. purchase payment methodologies will create comparison challenges. There is also an
over‐emphasis within CMS communications that encourages states to just unilaterally adopt the
Medicare fee schedule for all codes.
2.) The original provision in the Consolidated Appropriations Act of 2016 that contained this LFFP also
required CMS to do a study of the impact on access of cutting Medicaid DME payment rates to
Medicare levels. This critical evaluation has not been performed yet. This language was included
by Congress as it recognized an action like this should not move forward until CMS had fully
evaluated the impact it may have. The language also required the evaluation be made public.
CMS was aware of this requirement upon passage of the Appropriations Act in December 2015
which allowed sufficient time for such a study to be conducted. Since we have neither heard of,
nor seen, such a study we are recommending a delay be placed on the implementation of the LFFP
until this critical evaluation is completed and published.
3.) The Medicare DME Competitive Bid Program rates were developed for the Medicare population,
not the Medicaid population. The Medicaid population is very different. When establishing
payment rates, it is important to recognize the needs of the beneficiary population. The Medicare
population, which was the basis for the Medicare rates, is much different than the Medicaid
population. The Medicare population is primarily elderly in nature and has a small population
enrolled based on being disabled. In contrast, the Medicaid population represents all age groups,
including a significant pediatric population. It also has a higher number of individuals with
disabilities. Based on these differences, the types of equipment and related services can vary
between Medicare and Medicaid. These are all factors that must be considered in studying what
impact an adoption of Medicare rates at the Medicaid level may have.
4.) The Medicare DME Competitive Bid Program rates that are being used as a benchmark have been
shown to have created real access problems for Medicare beneficiaries. These Medicare rates
(and problems) should not be transferred to Medicaid beneficiaries. A study of the impact of the
Medicare DME Competitive Bid Program on Medicare beneficiary access was conducted in 2017
by the Washington, DC firm Dobson DaVanzo and Associates. The study indicated 52% of
Medicare beneficiaries reported trouble in obtaining DME. In addition, 77% of the discharge
planners surveyed reported difficulties in discharging Medicare beneficiaries who required DME.
This information is a warning of what will result should the Medicare rates be adopted on a state
Medicaid level.
5.) Any Medicaid payment cuts to CRT will have a particularly negative impact on enrolled children
and adults with significant disabilities and chronic medical conditions. This population is at
substantial risk for medical complications and major health care expenses. There already is a
fragile and limited network of qualified CRT suppliers. As explained in more detail in the next
point, any payment cuts to these specialized products will reduce or eliminate access.
NCART Comments re CMS‐10661 ‐ January 29, 2018 Page 3
6.) Of the 255 DME codes identified as effected by the LFFP, 37 codes relate to CRT products. The
following are important CRT facts that CMS and state policy makers must consider in an evaluation
of adequate access to CRT for children and adults with significant disabilities and chronic medical
conditions:
a. Complex Rehab Technology products and services are significantly different than standard
Durable Medical Equipment‐ The DME benefit was created over fifty years ago to address the
medical equipment needs of elderly individuals. Over the years CRT products have been
developed for the unique needs of people with disabilities offering more features, function,
and durability. Increasingly CMS has grouped these products into single HCPCS codes with
vague descriptors. As a result, CRT items with a broad array of features/functions/durability
and standard DME items are grouped into a single HCPCS code with only one level of
reimbursement.
b. These specialized products are used by a small population of children and adults who have
significant disabilities and chronic medical conditions‐ Individuals who require CRT have a
complex disability or medical condition such as, but not limited to, Cerebral Palsy, Muscular
Dystrophy, Multiple Sclerosis, Spinal Cord Injury, Amyotrophic Lateral Sclerosis, Spina Bifida,
or Traumatic Brain Injury. CRT enables these individuals to deal with their daily physical,
functional, and cognitive challenges. It plays a critical role in addressing the complex medical
needs of these children and adults and in keeping them active and functional within their
homes and communities. CRT also keeps health care costs down by reducing medical
complications, clinical interventions, hospitalizations, institutionalizations, and caregiver
needs.
c. The process of providing CRT products is done through a clinical model and is service‐
intensive (like the provision of custom Orthotics and Prosthetics)‐ The provision of CRT is
typically done through an interdisciplinary team consisting of, at a minimum, a Physician, an
independent Physical Therapist or Occupational Therapist, and a credentialed Assistive
Technology Professional (ATP). The ATP is employed at a company accredited as a CRT
supplier by a CMS approved accreditation organization. The team collectively provides
clinical services and technology‐related services designed to meet the specific and unique
medical and functional needs of the individual. The activities of the CRT supplier are labor‐
intensive and include evaluating, recommending, securing funding, purchasing, assembling,
delivering, fitting, adjusting, and training. The supplier is also responsible for ongoing
modifications and repairs.
d. Due to significant operating costs and low profit margins there are only a small number of
qualified CRT suppliers that supply these specialized products and services‐ This is a difficult
business as companies providing CRT products must maintain the required trained and
credentialed staff, supporting systems and facilities, and related company accreditations to
perform the necessary activities. It is important to note that the evaluation and delivery
process is service‐intensive, and suppliers do not receive any separate payment to cover
these costs. Supplying CRT comes with significant operating challenges and costs, along with
low profit margins. As a result, there are a very limited number of companies that provide
CRT and that number is decreasing across the country. An analysis of Medicare CRT
providers from 2011 to 2014 showed a 40% decline.
e. Congress and CMS have recognized the specialized nature of CRT and it has been excluded
from the Medicare Competitive Bid Program since its commencement in 2008‐ Given the
unique nature of individually configured CRT products, these items have been specifically
NCART Comments re CMS‐10661 ‐ January 29, 2018 Page 4
excluded from inclusion in Medicare’s Competitive Bid program. Accordingly, for certain
DME wheelchair accessory codes the Medicare fee schedule has a different payment rate
when an item is provided on a CRT wheelchair identified by a “KU” modifier.
Recommendations
Continuing to move forward with the implementation of the LFFP provision without addressing the
issues and deficiencies raised above is contrary to the original intent of Congress. It would put Medicaid
beneficiaries at significant risk of harm from a loss of access to critical equipment and supporting
services. The negative consequences of an “improper” implementation will also increase overall state
health care costs.
1.) To prevent significant negative outcomes for Medicaid beneficiaries and to avoid increased
Medicaid health care costs for the states, we recommend the implementation of this “Limit on
Federal Financial Participation” provision be delayed until 120 days after the following are
completed:
a. CMS should perform and publish the access study required per the Consolidated
Appropriations Act of 2016 to fully evaluate the impact of applying Medicare DME payment
rates to the Medicaid program.
b. CMS should assemble and distribute a complete “information package” that includes all the
relevant information (statute language, Medicaid Director instructions, specific impacted
DME codes, analysis system, state compliance options, etc.) to provide a state with all the
information needed to fully evaluate the impact of this provision.
2.) Once the above items are completed and made public, a state should be given 120 days to decide
on its plans and report that decision to CMS.
Additional Information
NCART has a sincere desire to collaborate with CMS to produce the best outcomes for state Medicaid
programs and for the enrolled beneficiaries with significant disabilities and chronic medical conditions.
We are happy to provide additional information as needed and would be happy to discuss our
comments further via telephone or in person.
Sincerely,
Donald E. Clayback
Executive Director
716‐839‐9728
[email protected] |www.ncart.us
File Type | application/pdf |
File Title | Microsoft Word - NCART Comments re CMS-10661 1-29-18 |
Author | dclaybackaol.com |
File Modified | 2018-01-29 |
File Created | 2018-01-29 |