Supreme Court Health Care Decision's Impact on Orthotics and Prosthetics
NAAOP
Description
Collection
Title:
Supreme Court Health Care Decision's Impact on Orthotics and Prosthetics
Creator:
NAAOP
Date:
2/15/2013
Text:
Congress and the President dodged another potential downgrade in our
nation's credit rating when they agreed to pass legislation to suspend the
debt ceiling-the amount of debt that Congress authorizes our federal
government to incur-until May 19, 2013. This does not solve any of the
problems associated with the debt ceiling other than the immediate concern
of a U.S. Government default on our financial obligations. In exchange for
this suspension, each house of Congress will have to produce a budget by
April 15th, or risk having congressional pay withheld. The Senate has not
passed a budget in the past four years and this move forces them to do so.
The next major date that may forge some bipartisan action comes at the end
of February when the current two-month delay in sequestration (or
across-the-board spending cuts) expires, unless Congress acts to delay these
cuts again or passes some kind of alternative to sequestration that saves an
equal amount of money. If sequestration goes into effect on March 1st, many
government officials and economists believe it could be devastating for the
overall economy and lead to an increase in unemployment, but despite these
dire warnings, there does not appear to be a consensus alternative approach
emerging from either political party, at least not yet. (Recall that the
last fiscal cliff deal occurred within about 48 hours and culminated in
congressional votes on New Year's Day.)
If sequestration takes effect on March 1st, all Medicare providers will
receive a 2% cut in their fees. How long it will take CMS to implement these
cuts is not known, nor is it known whether this will delay payment for
claims pending after March 1. This 2% cut will also apply to the O&P fee
schedule, which was raised by .8% on January 1, 2012 to reflect annual
inflation. As bad as this is for all Medicare providers, many believe this
is far preferable to passage of a major Medicare bill that reduces spending
over 10 years by as much as $400 to $600 billion. This is the number being
discussed in the context of potentially striking a Grand Bargain on
reduction of the deficit and debt.
Another key date is March 26, 2013. This is the date the current Continuing
Resolution or (CR) expires. The CR is currently funding all federal
agencies at 2012 funding levels. Without passage of another CR or passage of
a final set of appropriations bills for FY 2013, which ends on September 30,
2013, the federal government will shut down, as it did in 1994 and 1995.
This is additional leverage for Republicans, primarily, who want to ensure
that federal spending is reduced in a meaningful way, particularly through
the reform of entitlement programs such as Medicare, Medicaid and even
Social Security.
Meanwhile, on issues much more specific to O&P, the Department of Health and
Human Services continues to crank out reams of regulations implementing the
Affordable Care Act, including regulations on the essential benefits package
for both private insurance and Medicaid plans. Six GOP Governors have now
said they will expand their Medicaid programs in 2014 under the ACA,
including Ohio and Michigan (if the state legislature agrees). And CMS
continues to issue onerous physician documentation standards for O&P claims
that are causing serious problems for claims denials in the field. NAAOP
will continue to address all of these issues and ensure the O&P community's
voice continues to be heard.
Please visit our website at: www.naaop.org
NAAOP
1501 M Street, NW
7th Floor
Washington, DC 20005-1700
e-mail: <Email Address Redacted>
(800) 622-6740
(202) 624-0064 Phone
(202) 785-1756 Fax
www.naaop.org
nation's credit rating when they agreed to pass legislation to suspend the
debt ceiling-the amount of debt that Congress authorizes our federal
government to incur-until May 19, 2013. This does not solve any of the
problems associated with the debt ceiling other than the immediate concern
of a U.S. Government default on our financial obligations. In exchange for
this suspension, each house of Congress will have to produce a budget by
April 15th, or risk having congressional pay withheld. The Senate has not
passed a budget in the past four years and this move forces them to do so.
The next major date that may forge some bipartisan action comes at the end
of February when the current two-month delay in sequestration (or
across-the-board spending cuts) expires, unless Congress acts to delay these
cuts again or passes some kind of alternative to sequestration that saves an
equal amount of money. If sequestration goes into effect on March 1st, many
government officials and economists believe it could be devastating for the
overall economy and lead to an increase in unemployment, but despite these
dire warnings, there does not appear to be a consensus alternative approach
emerging from either political party, at least not yet. (Recall that the
last fiscal cliff deal occurred within about 48 hours and culminated in
congressional votes on New Year's Day.)
If sequestration takes effect on March 1st, all Medicare providers will
receive a 2% cut in their fees. How long it will take CMS to implement these
cuts is not known, nor is it known whether this will delay payment for
claims pending after March 1. This 2% cut will also apply to the O&P fee
schedule, which was raised by .8% on January 1, 2012 to reflect annual
inflation. As bad as this is for all Medicare providers, many believe this
is far preferable to passage of a major Medicare bill that reduces spending
over 10 years by as much as $400 to $600 billion. This is the number being
discussed in the context of potentially striking a Grand Bargain on
reduction of the deficit and debt.
Another key date is March 26, 2013. This is the date the current Continuing
Resolution or (CR) expires. The CR is currently funding all federal
agencies at 2012 funding levels. Without passage of another CR or passage of
a final set of appropriations bills for FY 2013, which ends on September 30,
2013, the federal government will shut down, as it did in 1994 and 1995.
This is additional leverage for Republicans, primarily, who want to ensure
that federal spending is reduced in a meaningful way, particularly through
the reform of entitlement programs such as Medicare, Medicaid and even
Social Security.
Meanwhile, on issues much more specific to O&P, the Department of Health and
Human Services continues to crank out reams of regulations implementing the
Affordable Care Act, including regulations on the essential benefits package
for both private insurance and Medicaid plans. Six GOP Governors have now
said they will expand their Medicaid programs in 2014 under the ACA,
including Ohio and Michigan (if the state legislature agrees). And CMS
continues to issue onerous physician documentation standards for O&P claims
that are causing serious problems for claims denials in the field. NAAOP
will continue to address all of these issues and ensure the O&P community's
voice continues to be heard.
Please visit our website at: www.naaop.org
NAAOP
1501 M Street, NW
7th Floor
Washington, DC 20005-1700
e-mail: <Email Address Redacted>
(800) 622-6740
(202) 624-0064 Phone
(202) 785-1756 Fax
www.naaop.org
Citation
NAAOP, “Supreme Court Health Care Decision's Impact on Orthotics and Prosthetics,” Digital Resource Foundation for Orthotics and Prosthetics, accessed November 23, 2024, https://library.drfop.org/items/show/234748.
