Health Reform + Related Health Policy News Update - February 6, 2013

In This Issue:

- Top News

..CMS Announces Round 2 Competitive Bidding Single Payment Amounts

..CBO Lowers SGR Repeal Cost by $100 Billion

..Republicans Press HRSA on 340B Audits

..HHS Proposes Contraception Coverage Plan

..Federal Economic Advisor Says Medicaid Cuts “Off the Table”

- State News

..Ohio Joins Other Republican-Led States in Medicaid Expansion

..Pennsylvania Opts Against Medicaid Expansion

..New Hampshire Considers a Two-Pronged Approach for its Exchange

- Regulatory News

..CMS Issues Final Rule to Increase Transparency in Health Care “Sunshine Rule”

..CMS Releases Guidance on Increased FMAP for Preventive Services

..CMS and IRS Issue Proposed Rules on Shared Responsibility Provision

..CMS Announces the Launch of Bundled Payments Initiative

..CMS Issues Proposed Rule to Reform Regulatory Requirements

- Additional Reading

- Federal Register

- Excerpt from CMS Announces Round 2 Competitive Bidding Single Payment Amounts:

CMS recently announced the single payment amounts for competitively bid items under Round 2 of the Durable Medical Equipment Prosthetics, Orthotics and Supplies (DMEPOS) competitive bidding program. CMS said that the payment levels will fall an average of 45 percent from the fee schedule amounts for the DMEPOS products. Payment levels will be reduced by an average of 72 percent for mail-order diabetic testing supplies. CMS said it plans to offer more than 14,500 contracts to about 900 DMEPOS suppliers. Fifteen contracts will be offered to 15 suppliers as part of the national mail-order diabetic supplies. Jonathan Blum, Deputy Administrator and Director of the Center of Medicare, said the Agency is confident the program will benefit taxpayers and beneficiaries. The payment levels will be effective as of the initiation of Round 2 on July 1, 2013. Industry representatives criticized the pricing and said it underscored the flaws in the program. “These are suicide rates,” said John Gallagher, vice president of government affairs at VGM. “If they're implemented, I don't see more sales and acquisitions—I see complete collapse.”

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DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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