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ASA NEWSLETTER
 
 
April 2000
Volume 64
Number 4
 
WASHINGTON REPORT

Society Requests Work Value Re-evaluation in Connection With MFS Five-Year Review

Michael Scott, Director

Governmental and Legal Affairs


On February 28, 2000, ASA filed a request with the Health Care Financing Administration (HCFA) that the physician work values included in all anesthesia codes under the Medicare Fee Schedule (MFS) be re-evaluated as part of the upcoming five-year review mandated by federal law. ASA also renewed its request, most recently made last January 3, 2000, that increased work values for several pain management and critical care codes be immediately accepted by HCFA or, if not, be re-evaluated as part of the five-year review. Under the review procedures, new approved values would take effect January 1, 2002.

As a result of the first HCFA five-year review that took effect January 1, 1997, ASA succeeded in gaining a 22.76-percent increase in physician work values, which translated into a 15.95-percent increase in the anesthesia Medicare conversion factor. This increase was smaller than that requested by ASA, based both on a survey of double-boarded anesthesiologists and on a "building block" valuation of anesthesia work by a multispecialty physician panel. The increase nonetheless represented a significant step in recouping a part of the major downward adjustment in the anesthesia conversion factor that occurred at the inception of the MFS in 1992.

ASA's current request is again principally based upon a "building block" approach, this time by equating physician work in the preoperative, intraoperative and postoperative portions of an anesthesia procedure to work relative value units for four evaluation and management (E&M) codes: outpatient visit; new patient, level two; prolonged physician service with direct patient contact (two time-based codes); and subsequent hospital visit, level one.

On a weighted average basis, this approach suggests that anesthesia work is currently undervalued by over 30 percent -- without taking into account the several non-E&M procedures (e.g., intubation) commonly performed in connection with anesthesia procedures. ASA will be surveying some of its members in the next several weeks as to the frequency and duration of the non-E&M procedures. ASA has estimated to HCFA that when they are taken into account, the current undervaluation will look more like 40 percent.

ASA anticipates that, as was the case five years ago, HCFA will refer ASA's request to the American Medical Association/Specialty Society Relative Value Update Committee (RUC) for a recommendation. The RUC consists of representatives from 26 medical specialty groups, including ASA, and because adjustments in relative values must be budget neutral, the group tends as a practical matter to require a high standard of persuasion before it will recommend an increased value. ASA expects to present both its member survey and additional data in support of its request to the RUC in September. The RUC will formulate its recommendations on all work value adjustments by the end of the year.

Congress Returns From Recess, Confronts Major Health Issues

Following a two-week Presidents' Day recess, the House and Senate were both back in session at the end of February. Principal speculation in the health care field centered around the conference on patient protection legislation. The two bodies last year passed widely divergent bills, and doubt exists whether the conferees can agree on a bill that will pass both houses, let alone be signed by the president. At press time, the conferees had reached agreement on three rather noncontroversial issues but were still far apart on others.

The most visible issues separating the two bills are whether managed care enrollees will have the right to sue over coverage issues following exhaustion of internal remedies, and whether the bill will cover all managed care enrollees or only the 44 million enrollees of plans currently protected under the federal Employee Retirement Income and Security Act. The bills also differ in numerous more subtle but important details; in general, the bipartisan House bill affords more effective enrollee protection and is supported by organized medicine, including ASA, in most particulars.

Seldom in recent years has a piece of health legislation enjoyed greater political significance. If the Republican-controlled Congress is unable to produce a bill or to produce one that the president will not sign, the Democrats are certain to seek political advantage in the upcoming elections, especially with reference to the House, where majority control hangs in the balance.

Complicating this picture is the congressional response to the Institute of Medicine study on medical errors, discussed in an article by Neil Swissman, M.D., in the March NEWSLETTER. Several committees have already held hearings on the report, and a number of bills have been introduced or are being drafted to implement some of the report's recommendations. Clearly, the most controversial recommendation would require providers to report medical errors resulting in death or serious injury to a national agency. AMA and virtually all broad-based provider organizations have already expressed opposition or skepticism to mandatory reporting.

ASA members attending the March 20-22 Legislative Conference were urged to highlight the Society's successful two-decade patient safety program during their visits on Capitol Hill. ASA has urged Congress to consider alternatives to mandatory reporting such as the closed claim study initiated by ASA in the mid-1980s, which was unquestionably a major source for identifying the causes of anesthesia mishaps and providing the basis for development of appropriate practice parameters.

A number of senators and representatives have suggested that legislation responding to the Institute of Medicine study might appropriately be added to the patient protection legislation now being discussed in conference. Such a move would undoubtedly complicate the politics surrounding the patient protection debate, but such a possibility cannot be discounted in a session shortened by party conventions and the upcoming elections.

Looming in the health care wings for Congress are several proposals for restructuring the Medicare program and for adding a drug benefit for Medicare enrollees. Most observers doubt that these proposals can be converted into legislation in the politically polarized atmosphere that currently exists on Capitol Hill, especially in the House. At the same time, however, extensive hearings will almost certainly take place, teeing up these issues for the 107th Congress and a new president next year.

TELL CONGRESS THAT HCFA'S DECISION IS WRONG ­ DEAD WRONG!

The nurse anesthetists have told the Health Care Financing Administration (HCFA) that they can do what we do. We know that as nonphysicians, they cannot provide the safest care--and we have the facts to prove it.

YOU NEED TO CONVINCE CONGRESS THAT THE NURSES AND HCFA ARE WRONG and that seniors covered by the Medicare program are the ones who will suffer from this arrogant political stance.

Not only will seniors be put at risk due to a patchwork of varying state regulations regarding anesthesia care, but there is the real possibility that other health care plans attempt to follow suit. This could ultimately affect everyone!

THIS IS ABSOLUTELY UNACCEPTABLE AND MUST BE STOPPED! ASA President Ronald A. MacKenzie, D.O., is organizing a massive effort to block HCFA action with congressional intervention. A massive effort by all 35,000 ASA members to contact Congress is needed immediately .

All component societies have received information on this critical issue and have been asked to organize telephone calling campaigns to all ASA members encouraging them to contact Congress.

YOU DON'T HAVE TO WAIT FOR THE TELEPHONE CALL ­ HERE IS WHAT YOU MUST DO: Telephone calls, letters and personal visits to your legislators' home offices are urgently needed. The U.S. Capitol switchboard number is (202) 224-3121. Correspondence to your senators can be sent to the U.S. Senate, Washington, D.C. 20510 and to members of the U.S. House of Representatives, Washington, D.C. 20515.

Please ask your legislators to:

  • Ask HCFA why it is rushing to make this change without any evidence to ensure patients' safety.
  • Become a co-sponsor of the Safe Seniors Assurance Study Act of 1999 (S. 818/H.R. 632)
  • In the House, sign on to the Dave Weldon/Gene Green "Dear Colleague" letter asking for action by the Ways and Means Committee.

Please include some of your personal experiences as a physician who is involved in the medical assessment and care of patients each and every day.

DO THIS TODAY!

 


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The views expressed herein are those of the authors and do not necessarily represent or reflect the views, policies or actions of the American Society of Anesthesiologists.

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