Regulators Fear Some All-Inclusive Medicare Plans Skimp on Specialty Care

News April 11, 2023 at 03:27 PM
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Medicare program managers want to make sure a relatively new type of Medicare home care plan offers patients quick access to all necessary care.

The Centers for Medicare and Medicaid Services (CMS), the agency that oversees Medicare, has included rule updates for Programs of All-Inclusive Care for the Elderly, or PACE plans, in the new final regulations for the 2024 contract year.

CMS has added a requirement that PACE organizations must have contracts in place for 26 types of specialists, including neurologists, radiologists, surgeons and palliative care specialists, or professionals who focus on making patients more comfortable by, for example, treating the severe pain caused by terminal cancer.

In the past, delays in PACE plan participant access to specialists "have, in some instances, contributed to adverse impacts to participants, including injuries, hospitalizations and death," CMS officials said when they proposed the new regulations.

What It Means

PACE plans could eventually help your clients solve the long-term care funding puzzle, by leading to the creation of a new Medicare long-term care benefits program.

But federal regulators' belief that they had to add a specialty care access list to the PACE plan requirements shows how difficult getting LTC programs right can be.

PACE Plans

Medicare rules usually keep the program from covering long-term care services.

PACE plans can get around those rules. They provide tightly managed, comprehensive care, including home health care and some homemaker services, for Medicare enrollees who have enough trouble with the activities of daily living to qualify for Medicaid nursing home benefits and who meet their states' PACE plan eligibility guidelines.

The plans operate under Medicare Part C, which is the same law that governs the operations of Medicare Advantage plans.

The country now has about 151 PACE plans, according to CMS, and those plans serve about 60,000 people, according to the National PACE Association.

Complaints from families and patient groups about PACE plans have focused mainly on a shortage of PACE plan capacity. In Ohio, for example, analysts reported that 97% of the participants in a PACE plan in Ohio said they were satisfied with their care, and that 90% said they would recommend their plan to a friend or relative.

CMS has provided no general statistics about PACE plan specialty care access problems.

Agency officials noted, in a discussion included in the PACE rule update proposal, that, when CMS reviewed PACE plan audit data for 2021, "approximately 70% of organizations that were cited for a failure to provide necessary services were cited, at least in part, based on not providing necessary access to medical specialists."

The History

The original PACE plan regulations, which were developed in 1999, listed the types of care a PACE plan must cover, and they also required a PACE plan to manage and provide all care that Medicare covers.

Regulators removed the list in 2006, because of a belief that the list overlapped with a requirement that PACE plans provide all Medicare-covered services.

"Since making these changes, we have seen through our monitoring and oversight efforts that some PACE organizations are not providing timely access to medical specialists," CMS officials said.

Putting the list may help CMS and state agencies assess PACE plans' readiness to open for business, officials said.

(Photo: Sandra Matic/Fotolia)

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