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Strategies for Post-COVID Commercial Payor Reimbursement Planning Jonathan Buck Shareholder Los Angeles, CA [email protected] 310.203.5369 June 11, 2020 David King Shareholder Nashville, TN [email protected] 615.259.1538

Strategies for Post-COVID Commercial Payor Reimbursement ... · 11.06.2020  · Strategies for Tackling Past Claims Backlog ... Right to consolidation of claims (bundling) Track and

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Page 1: Strategies for Post-COVID Commercial Payor Reimbursement ... · 11.06.2020  · Strategies for Tackling Past Claims Backlog ... Right to consolidation of claims (bundling) Track and

Strategies for Post-COVID Commercial Payor Reimbursement Planning

Jonathan BuckShareholder

Los Angeles, CA

[email protected]

310.203.5369

June 11, 2020

David KingShareholder

Nashville, TN

[email protected]

615.259.1538

Page 2: Strategies for Post-COVID Commercial Payor Reimbursement ... · 11.06.2020  · Strategies for Tackling Past Claims Backlog ... Right to consolidation of claims (bundling) Track and

2

Polsinelli COVID-19 Resources

Contact

For COVID-19 legal advice across a spectrum of

issues impacting an array of industries and legal

areas, our team is available and connected

nationally and in the communities in which you

operate.

Contact us with questions at:

[email protected]

Polsinelli’s cross-disciplinary COVID-19 blog

provides companies tools and information needed

to effectively and lawfully protect their employees

and business.

Visit our blog:

https://www.covid19.polsinelli.com/

Blog + Resources

2

Page 3: Strategies for Post-COVID Commercial Payor Reimbursement ... · 11.06.2020  · Strategies for Tackling Past Claims Backlog ... Right to consolidation of claims (bundling) Track and

Pulled from the headlines

Covid-19 Crisis: Not Everyone is Hurting!

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Page 4: Strategies for Post-COVID Commercial Payor Reimbursement ... · 11.06.2020  · Strategies for Tackling Past Claims Backlog ... Right to consolidation of claims (bundling) Track and

Planning for COVID-related Payor Policy

Changes and Audits

Strategies for Tackling Past Claims Backlog

Anticipating Changing Health Care Delivery

Models

Navigating Increased Regulatory Involvement in

Arrangements

Strategies for Post-COVID Commercial Reimbursement - Topics

4

Page 5: Strategies for Post-COVID Commercial Payor Reimbursement ... · 11.06.2020  · Strategies for Tackling Past Claims Backlog ... Right to consolidation of claims (bundling) Track and

Prepare for Evolving Payor Policies

Prepare for COVID-related Audits

Planning for COVID-related Payor Policy Changes and Audits

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Page 6: Strategies for Post-COVID Commercial Payor Reimbursement ... · 11.06.2020  · Strategies for Tackling Past Claims Backlog ... Right to consolidation of claims (bundling) Track and

Prepare for Evolving Payor Policies

Push-back on reimbursement for antibody testing

Non-waiver of patient cost-sharing for treatment of Covid-19

Non-waiver of patient cost-sharing when Covid-19 is not coded as the primary

diagnosis (i.e., if the patient had sepsis)

Non-waiver of patient cost-sharing for “associated visit” when the site of the

visit is ED (adjudicating as “treatment” and not waiving cost-sharing)

Not-waiver of cost-sharing for non-specific Covid testing in early days of

pandemic

Continuing attempts to reimburse at “government” rates

Non-extension of waivers

6

Planning for COVID-related Payor Policy Changes and Audits

Page 7: Strategies for Post-COVID Commercial Payor Reimbursement ... · 11.06.2020  · Strategies for Tackling Past Claims Backlog ... Right to consolidation of claims (bundling) Track and

COVID-related Audits

Maintain evidence of payor policy changes on website/email

Explain volume of service changes

Anticipate resumption of suspended practices and requirements

What ability do providers have to limit/prevent retrospective reviews?

If preauthorization suspended, will a relaxed standard be applied on audit?

Review documentation of service during emergency

Review billing changes – coding, modifier, place of service

Planning for COVID-related Payor Policy Changes and Audits

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Page 8: Strategies for Post-COVID Commercial Payor Reimbursement ... · 11.06.2020  · Strategies for Tackling Past Claims Backlog ... Right to consolidation of claims (bundling) Track and

Payor Contract Review

Understand your Contract Rights

Payor’s right to amend the Contract through a unilateral policy?

Utilization management policies

Quality control policies

Medical coverage policies

Cram-Down rate changes?

Right to consolidation of claims (bundling)

Track and challenge policies that breach the Contract or constitute

material changes

8

Planning for COVID-related Payor Policy Changes and Audit

Page 9: Strategies for Post-COVID Commercial Payor Reimbursement ... · 11.06.2020  · Strategies for Tackling Past Claims Backlog ... Right to consolidation of claims (bundling) Track and

Prioritize Analysis of Past Claims

Identify trended issues

Identify high-dollar claims

Identify payor policy changes affecting reimbursement

Bucket “General Denials” of lower-dollar claims

Strategies for Tackling Past Claims Backlog

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Page 10: Strategies for Post-COVID Commercial Payor Reimbursement ... · 11.06.2020  · Strategies for Tackling Past Claims Backlog ... Right to consolidation of claims (bundling) Track and

How to Prioritize Analysis of Claims in Each Category

Deadlines

Dollars at issue

Resources needed to gather and organize claim information

Chances of success

Strength/status of relationship with various payors

Strategies for Tackling Past Claims Backlog

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Page 11: Strategies for Post-COVID Commercial Payor Reimbursement ... · 11.06.2020  · Strategies for Tackling Past Claims Backlog ... Right to consolidation of claims (bundling) Track and

Analyze the Nature and Extent of Past Claims Issues

Run Data Analytics for Claims

Bucket Claims

Denials

Clinical

Technical

Misclassified claims

Underpayments

Rate (OON or INN)

Payor Policy Changes

Strategies for Tackling Past Claims Backlog

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Page 12: Strategies for Post-COVID Commercial Payor Reimbursement ... · 11.06.2020  · Strategies for Tackling Past Claims Backlog ... Right to consolidation of claims (bundling) Track and

Understand Where Problem Lies to Cluster the Claims

By State

By Hospital

By Payor Class

By Payor

By Contract (commercial vs. MA vs. Medicaid)

By Denial Code

Strategies for Tackling Past Claims Backlog

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Page 13: Strategies for Post-COVID Commercial Payor Reimbursement ... · 11.06.2020  · Strategies for Tackling Past Claims Backlog ... Right to consolidation of claims (bundling) Track and

Conduct a Payor Engagement Audit

Update assignment of benefits

Review administrative appeal process and templates

Review and update processes for responding to audits, recoupments

and offsets.

Strategies for Tackling Past Claims Backlog

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Page 14: Strategies for Post-COVID Commercial Payor Reimbursement ... · 11.06.2020  · Strategies for Tackling Past Claims Backlog ... Right to consolidation of claims (bundling) Track and

Understand In-network Dispute Resolution Processes

Understand and initiate contractual dispute resolution procedures:

Joint Operating Committee (JOC), Contract Operating Group (COG)

Administrative Appeals

Mediation, arbitration, or litigation

Prepare demand letter to payor’s inside counsel and/or contracting partner

Consider resolution alternatives, possibly in collaboration in payor

Payors may be receptive to special projects and custom approaches

Assemble evidence in a reasonable and usable way

Avoid “data dump”

Package data in a way that is meaningful to both sides

Strategies for Tackling Past Claims Backlog

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Page 15: Strategies for Post-COVID Commercial Payor Reimbursement ... · 11.06.2020  · Strategies for Tackling Past Claims Backlog ... Right to consolidation of claims (bundling) Track and

Special Considerations for OON Disputes

Understand rights assigned to you by your patients in your Assignment of Benefits

(both legal and equitable rights)

Important to identify misclassified claims

Especially important to identify the declared basis for misclassified or underpaid

claims

Locate and review all discussions with payors regarding any adverse determinations

(course-of-dealings, implied contract)

Understand that administrative appeal requirements still apply

Strategies for Tackling Past Claims Backlog

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Page 16: Strategies for Post-COVID Commercial Payor Reimbursement ... · 11.06.2020  · Strategies for Tackling Past Claims Backlog ... Right to consolidation of claims (bundling) Track and

ONN Dispute Escalation

Consider that deadlines for litigation may be in the healthcare plan and

not set by statute

Attorney demand letter (in-house/outside counsel)

Mediation

Agreed Arbitration

Litigation

Going-forward Contract

Strategies for Tackling Past Claims Backlog

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Page 17: Strategies for Post-COVID Commercial Payor Reimbursement ... · 11.06.2020  · Strategies for Tackling Past Claims Backlog ... Right to consolidation of claims (bundling) Track and

Track and Challenge Payor Policy Changes

Changes to “routine” language in contracts

Medical Necessity & Site of Service

Covered services

Who is the payor?

“Declared” broad medical policy changes

Provider manuals/reference guides

Other information incorporated into contract by reference

“Undeclared” coding edits

Strategies for Tackling Past Claims Backlog

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Page 18: Strategies for Post-COVID Commercial Payor Reimbursement ... · 11.06.2020  · Strategies for Tackling Past Claims Backlog ... Right to consolidation of claims (bundling) Track and

Changes to Historical Delivery Patterns

Telehealth and Site of Service

Remote Patient Monitoring

Behavioral Health

Ancillary Services

Changes to non Hospital-based Providers

Revised Contracting and Reimbursement Strategy

Anticipating Changing Health Care Delivery Models

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Page 19: Strategies for Post-COVID Commercial Payor Reimbursement ... · 11.06.2020  · Strategies for Tackling Past Claims Backlog ... Right to consolidation of claims (bundling) Track and

How will relationships and partnerships change?

Referral partners, potentially

How much more will payors get involved in providing care?

How will payors further push (or resist) changes in site of service?

Will volume be affected?

Will payor mix change?

Anticipating Changing Health Care Delivery Models

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Page 20: Strategies for Post-COVID Commercial Payor Reimbursement ... · 11.06.2020  · Strategies for Tackling Past Claims Backlog ... Right to consolidation of claims (bundling) Track and

Long-term Covid-19 Services?

Setting up dedicated Covid-19 unit

Education, training, consulting for businesses

Employee-testing for businesses

Anticipating Changing Health Care Delivery Models

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Page 21: Strategies for Post-COVID Commercial Payor Reimbursement ... · 11.06.2020  · Strategies for Tackling Past Claims Backlog ... Right to consolidation of claims (bundling) Track and

Anticipate greater governance role in commercial payor –

provider relationships (Ex. California A.G.: SB 977)

Consent for acquisitions and standards for approval

Impact on strategies and timing/planning

Prohibits anti-competitive contracting practices by providers

No impact on proliferation of payors acquiring medical groups

Increased downstream regulatory requirements in contracts

Medicare Advantage

Medicaid Managed Care

Navigating Increased Regulatory Involvement in Arrangements

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Page 22: Strategies for Post-COVID Commercial Payor Reimbursement ... · 11.06.2020  · Strategies for Tackling Past Claims Backlog ... Right to consolidation of claims (bundling) Track and

22

Polsinelli COVID-19 Resources

Contact

For COVID-19 legal advice across a spectrum of

issues impacting an array of industries and legal

areas, our team is available and connected

nationally and in the communities in which you

operate.

Contact us with questions at:

[email protected]

Polsinelli’s cross-disciplinary COVID-19 blog

provides companies tools and information needed

to effectively and lawfully protect their employees

and business.

Visit our blog:

https://www.covid19.polsinelli.com/

Blog + Resources

22

Page 23: Strategies for Post-COVID Commercial Payor Reimbursement ... · 11.06.2020  · Strategies for Tackling Past Claims Backlog ... Right to consolidation of claims (bundling) Track and

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