The United States Supreme Court today upheld the Affordable Care Act’s (ACA's) requirement that individuals be required to have health insurance or face financial penalties while striking down the law’s requirement that states must expand their Medicaid programs or face federal funding consequences.
While neither of these rulings directly impacts the day-to-day operations of ASCs, the law’s transformation of the health care insurance marketplace has the power to affect ASCs for years to come. ASCA will work at the state level and with the federal government to ensure that the law is implemented in a way that allows ASCs to remain as an efficient, high quality alterative for patients to receive outpatient care.
Additionally the ruling leaves in place several provisions of the law that affect ASCs directly. A summary of these provisions follow.
- Productivity Adjustment - ASCs, and other providers, will continue to see their Medicare Updates reduced each year by a productivity reduction mandated in the ACA. ASCA will continue to fight for adequate ASC reimbursement and for ASCs to be updated at the same rate as HOPDs.
- Colorectal Cancer Screening Cost Sharing Waiver - The waiver of Medicare beneficiary cost sharing (deductable and co-pay) that became effective for colorectal cancer screenings under the law will continue. This provision may incentivize more patients to have a colorectal cancer screening, which would be favorable to ASCs, since they are the lower cost provider of this service.
- Independent Payment Advisory Board (IPAB) - The IPAB, created by the ACA, will remain operational. The board, consisting of fifteen unelected officials appointed by the President, is tasked with reining in Medicare’s costs beginning in 2014 by recommending specific Medicare reductions that will keep Medicare spending in line with pre-set spending targets. Because certain providers such as hospitals are exempt from the cuts until 2018, and because benefits cannot be targeted for cuts, the IPAB would by necessity have to target ASCs, physicians, drug manufacturers and nursing homes for reductions in order to meet their targets. ASCA has previously endorsed legislation to repeal IPAB.
- Medicare ACOs - The Medicare Accountable Care Organization (ACO) program established by the ACA will continue. Under the Medicare ACO program, health care providers are allowed to voluntarily form ACOs with the goal of reducing costs while providing high quality care. If these ACOs can generate savings while meeting quality targets, they share in the savings generated. ACOs are in the process of forming and their impact on ASCs remains to be determined.
- Centers for Medicare and Medicaid Innovation (CMMI) - The CMMI created under the ACA will continue its work investigating innovative payment and delivery system models that have the potential to reduce Medicare and Medicaid costs. The CMMI is in the initial phase of establishing these Medicare payment pilots. ASCA has been working with CMMI and evaluating the possibility of establishing a pilot to pay ASCs for performing total joint procedures on Medicare beneficiaries.
