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ASA NEWSLETTER
 
 
September 1998
Volume 62
Number 9
 
WASHINGTON REPORT

House Passes Managed Care Bill, Senate Vote Due in September

Michael Scott, Director
Governmental and Legal Affairs



In a pre-election effort to take political center stage on public concerns about managed care, the House Republican leadership brought its patient protection bill (H.R. 4520) to the House floor on July 24, just a week after its introduction, and squeezed out a 216-210 affirmative vote. Ten Republicans, including surgeon Greg Ganske (R-IA), voted against the measure.

The competing Democratic bill (H.R. 3605), sponsored by Congressman Ganske and Congressman John D. Dingell (D-MI) and supported by the American Medical Association, narrowly failed by a 212-217 vote.

To supporters of effective patient protection legislation, the GOP bill represents a major disappointment. Its provision on a guaranteed point of service (POS) option - the principal goal of the Patient Access to Specialty Care Coalition - is written so as not to apply to self-insured plans protected by the Employee Retirement Income Security Act (ERISA); these are the same plans that are insulated from state regulation by the terms of ERISA.

The GOP plan falls short of the terms of H.R. 3547, sponsored by Congressmen Dave Weldon (R-FL) and Sherrod Brown (D-OH) and supported by ASA, which, in addition to mandating a POS option for all plans, would require timely in-network access to medically necessary services. The GOP bill would mandate in-network direct access only to obstetricians/gynecologists and pediatricians, and would not ban payments to gatekeepers as an inducement to reduce or deny care.

The GOP bill does contain provisions on a number of issues dealt with in the Weldon/Brown bill, including a prohibition against gag clauses, a requirement that plans disclose adequate information to applicants and enrollees, and a mandatory mechanism for appealing denials of care.

In floor debate, the GOP bill was savaged by Congressman Ganske and many Democrats who characterized it as a capitulation to the insurance industry. GOP leaders defended the bill as representing the best that could be achieved in this Congress, and as providing for significant expansion of coverage to the uninsured through its proposed expansion of medical savings accounts and establishment of pooling opportunities for small employers.

With passage of the GOP bill in the House, the patient protection debate now moves to the Senate where both a counterpart to the House Democratic bill (S. 1890) and a Republican Leadership bill (S. 2330) are now pending. On the issue of POS, the Senate Republican bill is remarkable in that it requires such an option in ERISA plans, whereas the House bill excludes those plans from its POS requirements. The Senate bill, however, exempts small (2-50 employees) ERISA plans from its mandate.

For supporters of access to specialist care, the Republican Senate bill appears to offer real opportunity because, although its coverage is restricted to most ERISA plans, other private plans can be reached through state legislation. More than 30 states have already enacted POS requirements for non-ERISA plans.

The Senate recessed at the end of July without taking up the patient protection bills, and it remains to be seen at this point whether sufficient time (and GOP leadership commitment) will remain after the August recess to pass the bill in the Senate and successfully steer it through conference. President Clinton has already promised to veto the House-passed bill, and many speculate that there is little opportunity that a bill, satisfactory to the President or immune from Presidential veto, can be crafted.

One sideline on the debate is of special interest to ASA members: The coalition of nonphysician providers failed in their efforts to gain inclusion of a provision in either the House or Senate GOP bills barring discrimination on the basis of licensure by managed care organizations in selection of their provider panels. This had represented the major reason for their support of Congressman Charles Norwood's (R-GA) Patient Access to Responsible Care Act (H.R. 1415). There is some indication that an attempt will be made to add the provision in conference, when and if one occurs following the recess.



ASA Files Comments on Medical Direction

As noted in this column in July, the Health Care Financing Administration (HCFA) on June 5 proposed a number of modifications in its rules relating to reimbursement for medical direction of nurse anesthetists, anesthesiologist's assistants and residents. Those modifications, many of which were based on ASA recommendations, would introduce somewhat greater flexibility into the existing HCFA requirements and, for the first time, would provide limited guidance as to documentation.

Although some ASA members may have filed comments on the proposed rule directly with HCFA, less than two dozen communications were received from ASA members in the Washington Office in response to the invitation by ASA President William D. Owens, M.D., contained in the President's Update (July 10, 1998). Virtually all of those comments criticized the proposed easing of the requirement that the anesthesiologist personally provide the preanesthesia examination and assessment or postanesthesia care.

Some expressed the concern that elimination of the existing mandate that the anesthesiologist personally participate in induction and emergence, as distinct from the proposed more general requirement that the anesthesiologist participate in the most demanding aspect of the procedure, would represent an abdication of the anesthesiologist's role in the provision of anesthesia care. A few criticized the limited documentation guidance provided by the proposed rule.

ASA's letter of comment, which reflected input by the ASA Administrative Council and the chairs of three ASA committees, was filed with HCFA on August 4. A copy of the letter can be obtained from Marissa Valeri in the Washington Office; excerpts appear on pages 3-4 of this issue. In essence, the letter argues for retention of the existing provisions related to the preanesthesia and postanesthesia phases, and continued reference to induction and emergence in the requirement related to personal participation. It also seeks a number of clarifications from HCFA as to its intentions, including clarification of documentation requirements and the continued existence of the current limited exceptions to the medical direction restrictions.



ASA Comments on Medical Direction Proposal
(Excerpts from August 4 Letter to HCFA from ASA President William D. Owens, M.D.)

Preoperative examination and evaluation. In HCFA's preamble to the proposed rule, the statement is made that ASA and the American Association of Nurse Anesthetists (AANA) have reached consensus on a revised set of medical direction requirements. This statement is not correct: although the two organizations reached substantial consensus on several points, limited serious differences remain.

The principal substantive difference between ASA and AANA relates to the first condition for medical direction payment. At our meeting with HCFA officials in February of this year, ASA supported continuation of the existing requirement that a physician perform a preanesthetic examination and evaluation. AANA would have permitted, as an alternative, that the physician ensure that the examination and evaluation be performed by a qualified licensed practitioner.

ASA strongly believes that there should never be a permitted alternative to the physician performing the pre-anesthetic examination and evaluation. This requirement, as currently prescribed, goes to the very heart of the physician-individual patient relationship that the Tax Equity and Fiscal Responsibility Act (TEFRA) requires as a condition for Part B reimbursement, and represents the basis upon which all remaining physician anesthesia responsibilities are defined.

Personal participation in induction. HCFA's new standards require the anesthesiologist to personally participate in the most demanding aspects of the anesthesia plan and to specifically document participation in those aspects. That requirement is drawn in precisely the terms that ASA recommended, but ASA now believes - based on comments from its members - that the proposed standard can be loosely construed as a license not to personally participate in any aspect of the procedure. ASA doubts that this was HCFA's intention; it certainly was not ASA's intention.

In order to avoid misunderstanding, ASA recommends that this requirement be amended to read as follows: "Personally participates in the most demanding aspects of the anesthesia plan, including, if applicable, induction and emergence of the patient." Such an amendment would take account of the absence of induction and/or emergence in some types of anesthetics, while reaffirming the requirement of personal participation in these aspects when general anesthesia is administered.

Postanesthesia care. HCFA proposes to change this standard by adding the following words to "Provides indicated postanesthesia care:" "... or ensures that it is provided by a qualified individual [as specified in operating instructions]." ASA had recommended this change essentially in recognition of the very common practice, in many institutions, by which patients are discharged by resident physicians from the postanesthesia care unit (PACU), or alternatively by qualified nurses by reference to a defined scale of patient characteristics (discharge criteria).

Several ASA members have suggested that this proposed change appears to represent an abdication by the anesthesiologist of an important medical function, necessarily involving medical judgment, and that the language of the existing standard is sufficiently flexible to account for existing accepted PACU discharge practices. We agree: Inclusion of the word "indicated" in the standard appears to provide all the flexibility in postanesthesia care as is reasonably required, and we therefore recommend that no change in this standard be made.

Exceptions. The proposed rule provides that "The physician ... does not perform any other services while he or she is directing the single or concurrent services so that one or more of the conditions in paragraph (a) (1) of this section are not violated." The current rule, of course, provides only that the physician shall not perform "any other services" while engaged in medical direction. As HCFA knows, however, a number of limited exceptions to this prohibition were identified in the preamble to HCFA's final TEFRA regulations, and considerable confusion has existed over the years whether this list of exceptions was exclusive or whether other, similar services of short duration could be performed without violating the medical direction reimbursement standards.

In light of this confusion, ASA supports the more flexible language of the proposed rule, which makes clear that other services can be performed if, and only if, they would not cause the physician to violate any of the medical direction conditions. Inherent in this support was the assumption that the existing exceptions would continue to be permissible under the new rule, as would other limited services of short duration - again as long as any of these services could be performed without violating the medical direction requirements. Confirmation by HCFA of its intention in this respect would assist our members.

Documentation. The proposed rule for the first time refers to the documentation necessary to justify reimbursement for medical direction, permitting the physician to "inclusively" document satisfaction of the medical direction standards, and requiring specific documentation of participation in the most demanding aspects of the anesthesia plan.

ASA interprets this provision as allowing an anesthesiologist to state in the medical record that the medical direction standards have been met, without enumerating each such standard, and as requiring the anesthesiologist to specify in the record those demanding aspects of the case in which he or she personally participated. ASA would again appreciate HCFA's confirmation of this interpretation.



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