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Notice of Proposed enternating soon. Public comment. After election. 09/09/96 14:26 FAX 501 463 8591 PAFFORDAMBULANCE 001 Pafford Ambulance Service, Inc. P.O. Box 130 214 Main Street Hermitage, AR 71647 FAX TRANSMITTAL TO Julie Demeo Domestic Colicy FAX # 202 - 456 - 6687 DATE 9-9-96 PAGES (inoluding cover) Z FROM JAMIE PAFFORD-GRESHAM VICE PRESIDENT, PAFFORD AMBULANCE SERVICE, 1-800-451-8036 FAX 1-800-532-7571 09/09/96 14:26 FAX 501 463 8591 PAFFORDAMBULANCE Jen Klein- 002 9-10 Pes. handle. P Carol - This CAME into Julie - her Pafford Ambulance Service, Inc. ATHN. P.O. Box 130 214 Main Street Hermitage, AR 71647 I was going to CAll her but VIA FACSIMILE 1-202-456-6687 It Mr wolks 9-9-96 issue ordented, 50 I figured TO: Julie Demeo FROM: Jamie Pafford-Gresham Damie to first Run 6x4 by you Hey, just a quick line, I have been meaning to call and ask you were you at the democratic convention? I thought I saw a zoom in of you on TV Ben, (my husband), agreed, but of course we could be wrong! I was wondering if HCFA has defined "RURAL" as far as ambulance services are concerned. (This relates back to an exception the President made on our behalf, that a rural exception be placed in the new guidelines for advanced life support ambulance transports). Has Jennifer seen anything come across her desk regarding ambulance services? I know you both are busy, but If you have heard anything I would appreciate knowing what's up. I have a meeting in a couple of weeks in Chicago, if I can find some Clinton buttons I'll be wearing them to show our support. Everyone at the Arkansas and American Ambulance Association realizes the President has stuck up for rural services and is on our side. We appreciate that and will remember it come election time. Take care, and thanks again for your help. P.S. I was elected as Arkansas Ambulance Associations President at our convention. I am the youngest and first women to serve. HEALTH CARE FINANCING ADMINISTRATION NATIONAL HEADQUARTERS 7500 Security Boulevard Baltimore, MD 21244-1850 FACSIMILE TRANSMISSION REQUEST ADDRESSEE: (Name, Organization, Address) FROM: Jennifer Boulanger Jennifer Klein OFFICE OF THE ADMINISTRATOR C5-26-11 Phone: Phone: (410) 786-3151 TOTAL PAGES: ADDRESSEE'S FAX MACHINE NUMBER DATE: Cover + 456-2878 REMARKS: Info on Ambalance - the proposed rule is in Departmental clearance. IF FAX MACHINE RETRANSMISSION IS NECESSARY PLEASE CALL: AT: (Name) (Phone) 912024562878 P.01 01 JUL-22-1996 09:47 FROM ADMIN BALTO OFFICE Background Ambulance services are costly and rapidly escalating. At $1.7 billion in FY94, they are the most costly services that Medicare still pays based on reasonable charges. For the past 3 years, Medicare payment for ambulance services have increased 15% per year. There are two types of ambulances services currently being delivered, Basic Life Support (BLS) and Advanced Life Support (ALS), which is a more sophisticated and costly service. ALS services are approximately twice as costly as BLS services. Because they are paid based on reasonable charges, there is a wide variation in the actual payment amounts for ambulance services. Current Policy and Proposed Change Medicare is currently operating under a transportation- based ambulance benefit where the type of vehicle used determines the level of payment, i.e. if an ALS vehicle is used, the ALS rate applies. We are in the process of preparing a proposed regulation that would move to a medical-condition-based benefit under which coverage and payment are determined by the level of care that is medically necessary. Problem Raised by Local Government Regulation The ALS/BLS issue is further complicated by the fact that there are a number of local governments mandating through ordinances or regulations, ALS ambulance services as the minimum standard level of ambulance transport. This development has put Medicare in the position of paying at the ALS rate even when ALS services are not necessary, leading to increased expenditures for both the Medicare program and its beneficiaries who are subject to a 20 percent copayment on these services. 912024562878 P.02 01 JUL-22-1996 09:48 FROM ADMIN BALTO OFFICE TOTAL 2.03 While we do not dispute the value of ALS services when they are needed, we also do not believe that Medicare and its beneficiaries should pay at the higher rate in cases where ALS services are not required. Rural Exception o We recognize that certain rural areas could be adversely affected because it may not be economical for them to maintain multiple ambulances, a mix of ALS and BLS. o Therefore, in these instances where only ALS services are available in a rural area, we would provide for an exception to our proposed policy change. We are refining the details of what constitutes a rural area, keeping in mind the rural area definition used in the Medicare Prospective Payment System for hospitals. We are also consulting with the Office of Rural Health Policy on this issue. Regulation Process and Timing 0 We have been meeting with the American Ambulance Association and the American College of Emergency Physicians on this issue on a regular basis. 912024562878 P.03 01 JUL-22-1996 09:48 FROM ADMIN BALTO OFFICE 01/17/96 17:45 FAX 501 463 8591 PAFFORDAMBULANCE 002 P Pafford Ambulance Service, Inc. P.O. Box 130 214 Main Street Hermilage, AR 71647 VIA FAXMILLE 1-202-456-2878 Jennifer Klein Domestic Policy The White House Washington, DC Dear Jennifer: Attached please find the American Ambulance Association's interpretation of Section 11461 of the President's plan for Medicare reform under Budget Reconciliation. If our interpretation is correct, this section of the Fresident's plan would have a significant impact on ambulance services covered under Medicare. My last conversation with you was on the eleventh of December, at this time you concluded that the President's plan did not impact current Medicare law for ambulance services, I would appreciate your reviewing this matter to resolve the different interpretations. As we have discussed before, the American Ambulance Association does not object to ambulance services being put under a fee schedule. However, we believe that fee schedule language which specifically addresses the areas of coverage and reimbursement that needs reform should be included. Additionally, we believe that the process of negotiated rulemaking should be required as this would provide an opportunity for all affected parties (e.g. ambulance providers, State regulators, and the emergency physician community) to have direct input into a rulemaking adoption process. I have attached such language passed by the House of Representatives as an example of the type of language we believe is important. Relative to the issue of inherent reasonableness, there are grave concerns that if this provision is eliminated it will remove an important safety net that ambulance providers have utilized, under unusual circumstances, to correct grossly deficient rates where they exist. Please contact me at your earliest convenience so the apparent discrepancies of opinion can be resolved Thanks again for your help in this matter. Sincerely, Jamie Jamie Pafford-Gresham Vice-President Pafford Ambulance Service, Inc. 01/17/96 17:45 FAX 501 463 8591 PAFFORDAMBULANCE 003 AP OF CTMADMINISTRATION 200 soe' 5057 JAN-17-1996 17:34 American Ambulance Association VIA FAX TO: Board of Directors Joe Paolella, Government Affairs Committee Chairman Wendy Ruhlin, Government Relations Representative David Nevins, Executive Vice President FROM: David Werfel SUBJECT: Administration's Provisions Relating to Part B DATE: January 12, 1996 In reviewing $11461 of the Administration's provisions for Medicare Part E, there are two major changes that will impact ambulance services, if I am reading the sections correctly. These two changes, and the reasons for my conclusions, are as follows: 1. Fee Schedule - Section 11461 (a) amends Section 1833 of the Social Security Act by eliminating the reasonable charge methodology and plating services described in Section 1832(a) (1) under a fee schedule. Section 1832a(1) refers to "medical and other health services". $1861s defines "medical and other health services". Ambulance is listed at subdivision 7. Therefore, ambulance services would be placed under a fee schedule. It is important to note that ambulance services provided by hospitals reimbursed on a reasonable cost basis would not be affected by this provision, creating a discrepancy in how ambulance services are reimbursed by Medicare. The proposed amendment of 1833a(1) strikes the "reasonable charge" methodology and replaces it with payment that is the lower of the actual charge or a fee schedule. Ambulance services (other than those provided by a Part A provider) do not meet any of the exceptions in 1833a(1). Therefore, Part B ambulance services would be allowed the lower of the actual charge or "applicable fee schedule developed by the Secretary". of course, DO ambulance fee schedule has, as yet, Been developed. However, once 10 18, ambulance services would be on it. Greenment Medicare Relations: be . T301 Connecticut Ave. NW, Washington, nc 20038 . (202) 258-8390 (915) . 480-5473 FAX 296-6110 Executive Offices 8 2800 Aubura Blvd., Suite C, Excramento, CA 85821-2102 . (918) 473-3827 . FAX Licer Community Just Tananhaum - HED Collornia Street, 22th Floor Sen Franelsco, a 94108-2000 - (416) 433-1940 FAX (510) . FAIL (45) 199-5460 Law Consultant, David Werral, Eary - One Reive Orive. NY 11722 . (518) - (202) 01/17/96 16:35 TX/RX NO.4692 P.003 01/17/96 17:45 FAX 501 463 8591 PAFFORDAMBULANCE 004 JAN-17-1995 17:35 AMP OF 200 2. Inherent Reasonableness - Subdivision (b) (9) (A) of the proposed section 11461 strikes paragraphs (8) and (9) of 1842(b). These are the inherent reasonablenets sections. 1842(b)(9) - This section is for the publication of adjustment to rates for physicians' services. Thus, its being delated does not affect ambulance services. However, 1842 (b) (6) (A) states that the Secretary shall describe in Regulations the factors used for determining when inherent reasonableness adjustments should be made. While 1842 (b) (8) (B) and (C) specifically reference physicians services, 1842 (b) (B) (A) does not and has been used as the basis for inherent reasonableness adjustments for ambulance. Thus, we would have no methodology in place for correcting grossly deficient rates. 2 01/17/96 16:35 TX/RX NO.4692 P.004 01/17/96 17:45 FAX 501 463 8591 PAFFORDAMBULANCE 005 JAN-17-1996 17:35 AMR Ut SENI DIAETOX JUE: , 1- 2-90 , 6-41MR := 2 white House Proposal 11D-68 1 (b) EFFECTIVE DATES.- 2 (1) The amendments made by subsection (c) apply to 3 contracts whose periods and at, or after, the and of the ' third calandar sonth that begins after the date of enactment of this Act. (2) The amendments made by subsections (a), (D), (8), and (e) apply to contracts whose periods begin after the third calandar month that begins after the date of shartment of this Act. 20 Subpart C-Provisions Relating to Part B of 11 Medicare 12 see. 11461. REPLACEMENT or REASONABLE CHARGE RETRODULEGY BY FEE 23 SCHEDULES. 14 (a) IN GENERAL.-The matter in sastian 1833(a) (1) (42 U.S.C. 15 22951(a) (1)) preceding clause (A) is amended by striking "the 25 reasonable charges for the survices" and inserting "the lasser of 17 the actual charges for the services and the accunts determined by 18 the applicable fee schedules developed by the Secretary for the 19 particular services". Proposed New Section 80% of the lesser of the actual charges for the cervices and The and(or?) the amount determined by The applicable for schedule developed by my secheting for The policil is 01/17/96 16:35 TX/RX NO.4692 P.005 01/17/96 17:45 FAX 501 463 8591 PAFFORDAMBULANCE 006 JAN-17-1996 17:35 AMR OF CTHADMINISTRATION 203 562 5357 P.06/13 11D-72 1 (2) by redasignating clauses (11) and (111) as a subparagraphs (B) and (c), respectively, and , (2) by redesignating subalauses (I), (II), and d (III) of subparagraph (A) (as redesignated by 5 subperagraph (D) of this paragraph) as clauses (1), F (11), and (111), respectively. Inhered 7 (9)(2) section 1842(b) (42 U.S.C. 1395u(b)) is amended by striking paragraphs (8) and (9). (B) The first sentence of section 2834 (a) (10) (B) (42 stally 10 U.S.S. 1395m(a) (10(3)) is amended by striking everything 11 after "is authorised to" up to the period and inserting the etits 12 following: "dascribe by regulation the factors to be used A in determining the CASSE (of particular items) in which the 14 application of this subsection results in:the determination 15 of as amount that, by reason of its being gressly excessive 16 or grossly deficient, is not inherwatly reasonable, and to 17 provide in these cases for the factors that will be 18 considered in astablishing an amount that is realistic and 19 equitable*. (10) Section 1842(b) (10) (42 U.S.C. 1395u(b) (10)) is overgives 20 21 repealed. proud 23 (11) Section 1862(b) (11) (42 U.S.C. 1395u(b) (21)) is 23 amended 24 (A) by striking subparagraphs (B) through (D), 25 (B) by striking "(11)(A)" and inserting "(11)", 26 and 01/17/96 16:35 TX/RX NO.4692 P.006 02/09/96 12:35 FAX 501 463 8591 PAFFORDAMBULANCE 001 Pafford Ambulance Service, Inc. FAX Transmittal P.O. Box 130 FAX Number (800)532-7571 214 Main Street (501)463-8591 Hermitage, AR 71647 Office Number (800)451-8036 TO: Jennifer Klein FAX Number. 202-456-2878 Date: 2/9/96 Number of Pages (Including Header Page) 3 From: Jamie Pappoid Comments: l did not Send a Copy 8 Memo with my fax this week - (See attached) d have Received Several phonecalls This week about the language of the draft. Please Review let me Know of we Need to H Concerned Thanks- ps talked to Julie today - Said Jamie yall had been lrying to catch T 11N Me Derstand - sorry- you are Pesearchim this wown 02/09/96 12:35 FAX 501 463 8591 PAFFORDAMBULANCE 002 JAN-17-1996 17:34 American Ambulance Association VIA PAX TO: Board of Directors Joe Paolella, Government Affairs Committee Chairman Wendy Rublin, Government Relations Representative David Nevins, Executive Vice President FROM: David Werfel SUBJECT: Administration's Provisions Relating to Part B DATE: January 12, 1996 In reviewing $11462 of the Administration's provisions for Medicare Part B, there are two major changes that will impact ambulance services, if I am reading the sections correctly. These two changes, and the reasons for my conclusions, are as follows: 1. Fee Schedule - Section 11461 (a) amends Section 1833 of the Social Security Act by eliminating the reasonable charge methodology and placing services described in Section 1832(a) (1) under a fee schedule. Section 1832a(1) refers to "medical and other health services". $18615 defines "medical and other health services". Ambulance is listed at subdivision 7. Therefore, ambulance services would be placed under a fee schedule. It is important to note that ambulance services provided by hospitals reimbursed on a reasonable cost basis would not be affected by this provision, creating a discrepancy in how ambulance services are reimbursed by Medicare. The proposed amendment of 1833a (1) strikes the "reasonable charge" methodology and replaces it with payment that is the lower of the actual charge or a fee schedule. Ambulance services (other than those provided by a Part A provider) do not meet any of the exceptions in 1833a(1). Therefore, Part B ambulance services would be allowed the lower of the actual charge or "applicable fee schedule developed by the Secretary". of course, no ambulance fee schedule has, as yet, been developed. However, once 11 18, ambulance services would be on it_ Government Medicare Relations: Inc. 1331 Connections Ava. NW, Washington, ac 20038 . (203) 298-8390 . - 205-8118 Executive Offices . 2800 Auburn Blvd.. Suite c Sacramento, CA 85821-2102 . (918) 625-227 . FAX Labor Law Tanenbeum . 830 Callfornia Street, 20th Floor - Sen Francisco, CA 94188-2689 . (415) 433-1840 (525) . FAX (415) Consultant, Consultant Ja# Devid Werral, Enq . One Rabre Orive. NY 11788 a (516) SENS . FAX FAX (202) 01/17/96 16:35 TX/RX NO. 4692 P.003 02/09/96 12:35 FAX 501 463 8591 PAFFORDAMBULANCE 4 003 JAN-17-1996 17:35 AMP. OF CTHRDMINISTRATION 203 562 535? P.04/13 2. Inherent Reasonableness - Subdivision (b) (9) (A) of the proposed section 11461 strikes paragraphs (8) and (9) of 1842(b). These are the inherent raasonableness sections. 1842(b) (9) - This section is for the publication of adjustment to rates for physicians' services. Thus, its being deleted does not affect ambulance services. However, 1842 (b) (8) (A) states that the Secretary shall describe in Regulations the factors used for determining when inherent reasonablaness adjustments should be made. While 1842(b) (8) (B) and (C) specifically reference physicians services, 1842(b) (a) (A) does not and has been used as the basis for inherent reasonableness adjustments for ambulance. Thus, we would have no methodology in place for correcting grossly deficient rates. 2 01/17/96 16.35 TV /DV NO ACORD n 004 — PAFFORD-GRESHAM PAFFORD AMBULANCE-CORPORATE OFFI Fax: 800-532-7571 Voice: 800-451-8036 To: JENNIFER KLEIN Page 1 of 3 Wednesday, February 07, 1996 4:11:59 PM Date: Sunday, February 04, 1996 Time: 3:32:01 PM 3 Pages To: JENNIFER KLEIN From: JAMIE PAFFORD-GRESHAM PAFFORD AMBULANCE-CORPORATE OFFI Fax: (202) 456-2878 Fax: 800-532-7571 Voice: +1 (202) 456-2599 Voice: 800-451-8036 Comments: PLEASE REVIEW THIS WHEN YOU GET A CHANCE. THANK YOU FOR YOUR HELP. JAMIE From: JAMIE PAFFORD-GRESHAM PAFFORD AMBULANCE-CORPORATE OFFI Fax: 800-532-7571 Voice: 800-451-8036 To: JENNIFER KLEIN Page 2 of 3 Wednesday, February 07, 1996 4:12:47 PM PAFFORD AMBULANCE SERVICE, INC. PO BOX 130 HERMITAGE, AR 71647 1-800-451-8036 VIA FACSIMILE 1-202-456-2878 February 5, 1996 Jennifer Klein Domestic Policy The White House Washington, DC Dear Jennifer, The following is a letter I faxed to you on the 15th of January. Please review it and see if you might could enlighten me on what might be going on. We hear such conflicting stories. I am anxious to hear from you when you get a moment. My home number is 1-501-463-2807, I am under the weather, but needed to follow up on a few things, feel free to call me. Sincerely, Jamie Pafford-Gresham PS Tell Juli Demeo we finally got some snow down here, but it was with 6 inches of ice!! We "southerners' don't know how to operate in the snow and ice! It was a nice treat. R'S : FREEZE reas. charge methodology would apply to ambulances other reforms should be addressed in rulemaking process - used to pay in acc. w/ type of vehicle / proposedvule to look at determining payments based on type of care delivered input on how fee schedule set can't have negotiated submariting on Fees - but opp. for public comment removes inherent reasonableness process - no local adjustment doesn't effect hospital band son ambulance services - but that already exists AS reas, char ye methodology From: JAMIE PAFFORD-GRESHAM PAFFORD AMBULANCE-CORPORATE OFFI Fax: 800-532-7571 Voice: 800-451-8036 To: JENNIFER KLEIN Page 3 of 3 Wednesday, February 07, 1996 4:13:08 PM PAFFORD AMBULANCE SERVICE, INC. PO BOX 130 HERMITAGE, AR 71647 1-800451-8036 VIA FACSIMILE 1-202-456-2878 Jennifer Klein Domestic Policy The White House Washington, DC Dear Jennifer: Attached please find the American Ambulance Association's interpretation of Section 11461 of the President's plan for Medicare reform under Budget Reconciliation. If our interpretation is correct, this section of the President's plan would have a significant impact on ambulance services covered under Medicare. My last conversation with you was on the eleventh of December, at this time you concluded that the President's plan did not impact current Medicare law for ambulance services, I would appreciate your reviewing this matter to resolve the different interpretations. As we have discussed before, the American Ambulance Association does not object to ambulance services being put under a fee schedule. However, we believe that fee schedule language which specifically addresses the areas of coverage and reimbursement that needs reform should be included. Additionally, we believe that the process of negotiated rulemaking should be required as this would provide an opportunity for all affected parties (e.g. ambulance providers, State regulators, and the emergency physician community) to have direct input into a rulemaking adoption process. I have attached such language passed by the House of Representatives as an example of the type of language we believe is important. Relative to the issue of inherent reasonableness, there are grave concerns that if this provision is eliminated it will remove an important safety net that ambulance providers have utilized, under unusual circumstances, to correct grossly deficient rates where they exist. Please contact me at your earliest convenience so the apparent discrepancies of opinion can be resolved. Thanks again for your help in this matter. Sincerely, Jamie Pafford-Gresham Vice-President Pafford Ambulance Service, Inc.