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More information on these and other measures considered during the session is available at http://leg1.state.va.us.
Finding a common sense approach to utilizing available federal funds to address the access needs of low-income uninsured Virginians is a top priority for the VHHA. The 2016 General Assembly session addressed Medicaid expansion, but there was little if any progress made on the issue.
The Governor’s introduced budget authorized Medicaid expansion with the state share of the costs to be financed through an assessment on hospitals, but this language was eliminated from both the House and Senate budget bills. The final House and Senate budges included what is referred to as the “Stanley Amendment,” which expressly prohibits any general or nongeneral funds from being appropriated or expended for costs as may be incurred to implement coverage for the newly eligible population under Medicaid expansion.
One introduced bill, HB 797 (Plum), sought to implement Medicaid expansion by modifying Medicaid eligibility to include newly eligible individuals. This bill was tabled and failed to report out of a subcommittee of the House Health, Welfare and Institutions Committee (“HWI”).
In the absence of a broader efforts to address the access needs of low-income uninsured Virginians, the General Assembly did include in the House and Senate budget bills additional funding to increase the income eligibility criteria for the so called “Governor’s Access Plan” or “GAP” for adults with serious mental illness from 60 to 80 percent of the federal poverty level, effective July 1, 2016.
Ensuring the financial sustainability of our hospitals and health systems is a top priority for the VHHA. VHHA has supported a process to develop a provider contribution program to draw down additional federal funds for the Medicaid program, provided certain conditions are met. The Governor’s introduced budget authorized the Department of Medical Assistance Services (DMAS) to levy an assessment on private acute care hospitals, capped at three percent, with those funds being used to cover the non-federal share of costs of expanded coverage and the remainder directed to the Virginia Health Care Fund and reserved for 1) the non-federal share of future Medicaid costs; 2) increased payments to hospitals, including rural hospitals; 3) graduate medical education; and 4) the costs of administering the assessment. This provision was eliminated from the House and Senate budgets. Hospitals and health systems remain opposed to any contribution program where there is any possibility that the funds generated are used for any purpose other than covering net costs of expanded coverage, addressing Medicaid payment shortfalls, strengthening rural hospitals, providing additional graduate medical education (GME) funding, or used to supplant existing state General Funds within the program.
Medicaid payment rates for inpatient and outpatient hospitals fall well below costs and the General Assembly has not provided inflation updates for hospital payment rates since 2013. The final House and Senate budgets restore one-half of the inflation updates for hospital payment rates amounting to approximately $32 million over the two-year biennium.
VHHA’s position is that any broad scale deregulation of COPN must be done in a thoughtful, comprehensive manner – consistent with the principles laid out in General Assembly’s 2000 plan for deregulation under which each phase of deregulation was accompanied by increases in Medicaid payment rates, coverage for uninsured low-income adults, and full funding of graduate medical education costs. Meanwhile, COPN process improvements and related efficiencies are needed at this time to ensure that the Commonwealth and its citizens continue to benefit from this program.
Last year, HB 1277 (Orrock) and SB 1283 (Martin) removed capital expenditures for general hospitals from the requirement to obtain a COPN and directed the Secretary of Health and Human Resources to assemble a COPN Work Group to review the current COPN process, and the impact of such process on health care services in the Commonwealth, and the need for changes to the current COPN process, and to make recommendations to the General Assembly by Dec. 1, 2015. The final report of the COPN Work Group contained a series of recommendations to reform the COPN process. VHHA supported a majority of the recommendations coming out of the COPN Work Group.
Eighteen different bills were introduced in the 2016 General Assembly session seeking to make various changes to COPN. Only two of these bills passed out of the House and none passed out of the Senate. HB 350 (Byron) made its way to the Senate floor, but ultimately failed to come to a vote on procedural grounds due to it containing revenue provisions in its amended form. This resulted in the bill being re-referred to Senate Finance.
These bills could be grouped into three broad categories: 1) repeal, 2) piecemeal deregulation, and 3) reform. VHHA opposed all of the bills seeking to implement repeal or piecemeal deregulation of COPN, but supported bills seeking to make meaningful reforms to the COPN program.
HB 193 (O’Bannon) would have implemented a phased repeal of COPN, deregulating all services except for nursing homes, rehabilitation hospitals and beds, organ or tissue transplant services, and open heart surgery services by July 1, 2018. Ambulatory and outpatient surgery centers and capital expenditures at medical care facilities would have been deregulated effective July 1, 2016. Imaging services, including magnetic resonance imaging (MRI), computed tomography (CT), and positron emission tomography (PET) would have been deregulated as of Jan. 1, 2017. All other services except for nursing homes and rehab, open heart, and organ transplant would have been deregulated as of Jan. 1, 2018. SB 561 (Newman) and SB 333 (DeSteph) were Senate companions to HB 193. Another bill, HB 688 (Peace) sought to repeal COPN in its entirety, but the bill was laid on the table in HWI.
HB 193 was subsequently amended to phase-out regulation only for non-rural areas of the state, but to modify the schedule for deregulation of services. Under the amended bill, non-rural ambulatory and outpatient surgery centers and capital expenditures at non-rural medical care facilities would have been deregulated effective July 1, 2016, and all other services in non-rural areas would have been deregulated, except for nursing homes and rehabilitation hospitals and beds, certain open heart surgery services, and organ and tissue transplant as of Jan. 1, 2017. The amended bill also included a number of process reforms that were included in other reform bills discussed below.
The amended HB 193 passed out of the House (52-Y 46-N 1-A), but was laid on the table and continued to 2017 in the Senate Education & Health Committee (“Ed & Health”).
Several bills sought to remove select services from COPN review. VHHA opposed all of these bills, which can be summarized as follows:
Each of these House bills was either stricken or laid on the table by a subcommittee of HWI. SB 398 was incorporated into SB 561, which was laid on the table and continued to 2017 in Ed & Health.
There were five different reform bills introduced. VHHA supported three of these bills, HB 1283 (Stolle), SB 641 (Stanley) (Senate companion bill to HB 1283), and SB 777 (Barker). VHHA also supported elements of HB 350 (Byron) as it was originally introduced.
HB 1283 and SB 641 implemented all of the recommendations coming out of the COPN Work Group created by the General Assembly. The bills eliminated COPN review for lithotripsy, obstetrical services, magnetic source imaging, and nuclear medicine imaging. The bills also sought to put in place a number of process reforms to COPN including:
HB 350 included similar process reform measures and removal of lithotripsy, magnetic source imaging, and nuclear medicine imaging from COPN review, but also would have removed certain behavioral health services from COPN review. SB 777 would have required the Board to promulgate regulations to establish procedures to evaluate emerging technologies and health care delivery models, equipment, and facility types to determine if they should be subject to COPN by Nov. 1, 2017, and granted the Commissioner the authority to condition certificates on the agreement of the applicant to (i) participate in Medicaid and provide access to Medicaid beneficiaries and (ii) establish and maintain a charity care policy to provide free and discounted care to indigents.
SB 585 (Barker/Reeves) included support of charitable organizations specifically concerned with the provision of health care services to disabled veterans as a condition that can be placed on a COPN.
HB 1283 was tabled in HWI. SB 641 and SB 585 were incorporated into SB 561, which was continued to 2017 in Ed & Health.
HB 350 became the vehicle for COPN legislation in the Senate. Ed & Health adopted amendments to HB 350 adding the removal of MRI, CT, and PET services in non-rural areas from COPN review, subject to the creation of a Virginia Charity Care Fund for the purposes of compensating medical care facilities for losses incurred in the provision of charity care and improving reimbursement rates for Medicaid providers, in a manner designed to obtain federal matching funds. Medical care facilities would be required to contribute into the Fund based upon the level of charity care provided and the net operating revenues over expenses of the medical care facility. VHHA opposed the deregulation of MRI, CT, and PET services in the absence of accompanying increases in Medicaid payment rates and other conditions.
The amendments to the bill were proposed on the Senate floor on March 7, 2016. This date was past the March 2, 2016, deadline (50th day of session) for each chamber to act on revenue bills. In addition, because the amendments included revenue provisions related to creation of the Fund, the Senate Rules required the bill to be re-referred to Senate Finance.[1] Accordingly, the bill was re-referred to Senate Finance and was continued to 2017.
[1] Senate Rule 20 (n) requires that “Any bill, except the budget bill sent down by the Governor, whose principal objective is taxation or which establishes a special fund or any type of nonreverting fund, whether or not such bill may also require an appropriation, tax, special or general revenue, shall first be referred to the Standing Committee which has jurisdiction of the subject matter of the bill as defined in rules 18 (a) through 18 (j) of the Rules of the Senate. If said bill is reported by the Committee of original jurisdiction then said bill shall be re-referred by the Committee to the Finance Committee.”
VHHA focused on budget priorities that would help to address critical funding needs in key areas of importance to hospitals and health systems across the Commonwealth.
VHHA continued to work with other stakeholders over the past year including the Medical Society of Virginia, the Virginia Orthopaedic Society, the Virginia Self-Insurers Association, and Workers’ Compensation (WC) insurance carriers to develop a prevailing community rate fee schedule. This resulted in consensus legislation being passed through the House and Senate.
HB 378 (Farrell) / SB 631 (Wagner) directs the Workers' Compensation Commission to adopt regulations establishing fee schedules setting the maximum liability of the employer for medical services provided to injured persons to become effective on January 1, 2018. The initial fee schedules will set amounts based on the average of all amounts paid to providers in the same category of providers for the medical service in the same medical community. The budget includes $1,000,000 in appropriations to contract with an actuarial firm to develop the fee schedule. The Commission is required to review and revise the fee schedules in the year after they become effective and biennially thereafter. A stop-loss feature allows hospitals to receive payments or reimbursements that exceed the fee schedule amount for certain claims when the total charges exceed a charge outlier threshold, which initially is 150 percent of the maximum fee for the service set forth in the applicable fee schedule. Providers are prohibited from using a different charge master or schedule of fees for any medical service provided for workers' compensation patients than the provider uses for health care services provided to patients who are not claimants.
Following upon recommendations of the Joint Subcommittee on Mental Health Services in the 21st Century, legislators considered numerous bills seeking to improve Virginia’s mental health crisis response system and other measures to improve coordination of behavioral health services. Legislation that passed this year includes:
A number of bills sought to make changes to the Prescription Monitoring Program (PMP) requirements and other laws aimed at addressing opioid abuse in the Commonwealth.
A number of bills seeking to expand the scope of practice for nurse practitioners were introduced this session. Ultimately, only modest changes were made to allow additional flexibility for nurse practitioners to prevent barriers to access to care arising out of physician collaboration arrangements.
[1] The introduced bill eliminated the requirement that a nurse practitioner practice in collaboration and consultation with a patient care team or practice agreement, in any clinic that is located in a medically underserved area of the state as determined by VDH or an area of the state that has an unemployment rate of one and one-half times the statewide average unemployment rate.
[2] The introduced bill eliminated the requirement that a nurse practitioner practice in collaboration and consultation with a patient care team or practice agreement, for any nurse practitioner with at least 2,000 hours of post-licensure experience that is practicing in any clinic that is: organized for the delivery of health care without charge, or organized for the delivery of primary care services for the indigent and uninsured, and designated by CMS as a federally qualified health center or located in a medically underserved area of the state as determined by VDH.
[3] The introduced bill eliminated the requirement that a nurse practitioner practice in collaboration and consultation with a patient care team or practice agreement for a nurse practitioner licensed as a certified nurse midwife.
There were three bills pertaining to hospital operations.
Several bills pertained to the health professions and workforce.
HB 685 (Landes) provides that state insurance laws and regulations do not apply to agreements between a primary care physician and a patient authorizing the physician to charge a periodic fee as consideration for providing ongoing primary care to the patient. The legislation specifies content, disclosures, and disclaimers that must be included in the written agreement and prohibits the primary care physician from billing a third party payer for any services the physician is obligated to provide under the arrangement. SB 627 (Stanley) was the Senate companion bill to HB 685, but it did not pass out of the Senate Commerce & Labor Committee and was continued until 2017. The Governor proposed recommended action on the bill for the reconvened session to include a reenactment clause, requiring further action by the 2017 General Assembly.
Three bills involved medical malpractice and legal procedure: