On March 24, 2023, the Office of Inspector General (“OIG”) issued Advisory Opinion 23-03 (the “Opinion”), in which it decided not to impose sanctions on an Arrangement to provide prepaid gift cards to patients for certain preventative screening tests (the “Arrangement”).Continue Reading New OIG Opinion Permits Gift Cards to Beneficiaries in Limited Circumstances
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PBM Practices Receive Increased Federal Scrutiny
Though many recent reforms regarding prescription drug affordability have been focused on manufacturers and health plans, pharmacy benefit managers (“PBMs”) are also the focus of increased attention from federal policymakers and agencies.Continue Reading PBM Practices Receive Increased Federal Scrutiny
HHS Issues Proposed Rule to Provide Clarity on Rights of Conscience in Healthcare
On January 5, 2023, the U.S. Department of Health and Human Services (“HHS”) published a notice of proposed rulemaking entitled “Safeguarding the Rights of Conscience as Protected by Federal Statutes” (the “Proposed Rule“). In this article we provide a brief summary of the Proposed Rule, while also examining the statutory amendments and previous rulemakings that create its foundation.Continue Reading HHS Issues Proposed Rule to Provide Clarity on Rights of Conscience in Healthcare
CMS Announces Strategy on Value-Based Payments for Specialty Care
The Centers for Medicare & Medicaid Services (CMS) Innovation Center continues to move forward with its “strategic refresh” initiative. CMS’s strategic refresh initiative aims to meet five objectives: drive accountable care, advance health equity, support care innovations, improve access and affordability, and establish partnerships to achieve these objectives.Continue Reading CMS Announces Strategy on Value-Based Payments for Specialty Care
Fifth Circuit Upholds ACA Risk Adjustment Program
Various smaller health insurance issuers have challenged the risk-adjustment program under the Patient Protection and Affordable Care Act (ACA), alleging, among other things, that its underlying methodology favors larger insurers. Last week the Fifth Circuit issued an opinion in one of those cases, affirming the lower court’s rulings in favor of the United States Department of Health and Human Services (HHS) and its administration of the risk-adjustment program. See Vista Health Plan, Inc. v. United States Dep’t of Health & Hum. Servs., No. 20-50963, 2022 WL 807554, at *1 (5th Cir. Mar. 17, 2022).
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Happy Holidays from the Sheppard Mullin Healthcare Law Blog
HHS OIG Studies State Medicaid Programs’ Use of Telehealth
The United States Department of Health and Human Services Office of Inspector General (“OIG”) recently issued a report concerning the use of telehealth to render behavioral health services to Medicaid enrollees, calling for greater evaluation and oversight in the hopes of encouraging states to implement changes to improve how their Medicaid programs use telehealth for behavioral health services, including mental health assessments, individual therapy, and medication management.
Continue Reading HHS OIG Studies State Medicaid Programs’ Use of Telehealth
CMS Backs Off Price Transparency for Providers and Plans
On August 2, 2021, the Centers for Medicare and Medicaid Services (“CMS”) issued its hospital inpatient prospective payment system (“IPPS”) final rule (“Final Rule”) for fiscal year 2022. In addition to a number of other changes, the Final Rule repeals the price transparency requirement for hospitals, discussed in our September 2, 2020 blog post, obligating hospitals to report certain contract terms with Medicare Advantage (“MA”) plans for cost reporting periods ending on or after January 1, 2021.
Continue Reading CMS Backs Off Price Transparency for Providers and Plans
Private Equity and Healthcare – MedPAC’s Desire for More Transparency in Provider Ownership
In 2019, the Chair of the U.S. House Committee on Ways and Means (the “Committee”) asked the Medicare Payment Advisory Commission (“MedPAC”), an independent congressional agency established in 1997 to…
Continue Reading Private Equity and Healthcare – MedPAC’s Desire for More Transparency in Provider Ownership
Implications of the Pandemic on Hospitals – New OIG Report, Government Response, and What Comes Next
As many of us are starting to see the small light at the end of the tunnel, many hospitals are still reeling from the stress of the last year. Following…
Continue Reading Implications of the Pandemic on Hospitals – New OIG Report, Government Response, and What Comes Next
CMS to the Rescue for MA and Part D Plans – Rate Announcement Includes Significant Increase in Plan Payments for 2022
Over the last year, we have seen volatility in the healthcare industry overall, and Medicare Advantage (“MA”) and Medicare Part D plans (together, “Plans”) have not been immune. Particularly because of their risk adjustment payment models, and metrics by which they are measured, it was unclear how the Centers for Medicare and Medicaid Services (“CMS”) would respond.
Continue Reading CMS to the Rescue for MA and Part D Plans – Rate Announcement Includes Significant Increase in Plan Payments for 2022