Monday, May 16, 2022
HomeHealth LawCMS Delays however Finalizes Adjustments on Community Adequacy

CMS Delays however Finalizes Adjustments on Community Adequacy


The ultimate rule implementing “Contract Yr 2023 Coverage and Technical Adjustments to the Medicare Benefit and Medicare Prescription Drug Profit Packages” is now accessible for overview, and set for publication within the Could 9, 2022 Federal Register.   The ultimate rule adopts the proposed change that requires preliminary and repair space enlargement candidates to submit their proposed contracted networks in the course of the software course of.  The ultimate rule delays this transformation from contract yr 2023 to contract yr 2024.

In making this transformation, CMS is mainly reverting to its course of previous to 2019, when it started permitting plans to attest to community adequacy for brand spanking new contract or service space enlargement purposes, and relied on its triennial community overview course of to judge compliance with community adequacy requirements for brand spanking new and expanded contracts.

CMS expressed concern primarily based on three years of expertise that the attestation-only course of may have an effect on the integrity of the bidding course of.  It particularly famous that plenty of plans have requested to cut back the service space recognized of their bid proposal as soon as they realized that they didn’t have a adequate community for a number of counties included within the service space.  The quantity recognized as in search of such adjustments is small: since 2019, 5 organizations requested to make adjustments to the service space of a complete of 10 plans after bid submission deadlines.  Nonetheless, in CMS’ view, when a plan has to revise its bid to take away a county, it’s possible that the preliminary bid submission was not full, well timed, or correct.

CMS additionally famous that its post-application community adequacy evaluations confirmed a sample of organizations persevering with to have insufficient networks even after their contract turned operational.  CMS discovered a complete of 19 plans that fell into this class.

The unique challenge that prompted the change in 2019 has not gone away, which is the potential problem of candidates securing a full supplier community virtually a yr upfront of the contract changing into operational.  The appliance is usually submitted in February – round 10 months previous to the contract yr that begins on January 1.  CMS obtained many feedback concerning the problem of acquiring ultimate contracts in time for the applying course of, particularly in underserved areas or these with comparatively few suppliers.

CMS acknowledged the validity of plan feedback, and didn’t absolutely clarify why it determined to vary the applying course of for all plans, somewhat than utilizing its authority to take measures in opposition to the small variety of plans which have demonstrated an issue with community adequacy compliance – resembling disapproving a request for a brand new contract or service space enlargement for a plan that seeks to vary its service space after bid submission, or suspending enrollment till an operational plan comes into compliance with community adequacy requirements.   As an alternative, CMS will present two varieties of pretty restricted flexibility for organizations to mitigate the impression of the change:

  1. CMS will permit a 10-percentage level credit score in the direction of the share of beneficiaries residing inside printed time and distance requirements for the contracted community within the pending service space, on the time of software and at some stage in the applying overview.
  2. CMS will permit plans to make use of letters of intent (LOIs) in lieu of signed supplier contracts, on the time of software and at some stage in the applying overview. The LOI have to be signed by each the MA group and the supplier.  Candidates should notify CMS of their use of LOIs to satisfy community requirements.

Firstly of the contract yr (that’s, January 1), this flexibility would not apply, and plans would wish to satisfy community adequacy requirements for the whole service space with ultimate, signed supplier and facility contracts.

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