Monday, 26 December 2016

ALLERGEN IMMUNOTHERAPY FOR MEDICARE BENEFICIARIES - OFFICE OF INSPECTOR GENERAL RESPONSE

OBJECTIVE

To determine (1) if allergen immunotherapy and related services met Medicare coverage and documentation requirements, and (2) if allergen immunotherapy provided to Medicare beneficiaries was of a quality that met professionally recognized standards of health care.

BACKGROUND

In 2001, Medicare allowed approximately $130 million for allergen immunotherapy and related services. By 2003, this amount had grown to $171 million. Allergen immunotherapy—commonly known as allergy shots—is intended to reduce the patient’s reactions to particular allergens. Title XVIII of the Social Security Act (the Act) limits Medicare coverage to services that are medically necessary (section 1862(a)(1)(A)) and supported by documentation (section 1833(e)). 

Title XI of the Act requires that services provided to Medicare beneficiaries be of a quality that meets professionally recognized standards of health care (section 1156(a)(2)). Federal regulations (42 CFR § 1001.2) define “professionally recognized standards of health care” as “ Statewide or national standards of care that professional peers of the individual or entity recognize as applying to those peers practicing or providing care within a State.”

The Joint Task Force on Practice Parameters, which represents 95 percent of the allergist/immunologists in the United States, publishes standards of care for the diagnosis and treatment of allergies. 

These standards specify medical necessity criteria, contraindications, and the proper duration of allergen immunotherapy. They also outline procedures for administering allergy tests, preparing and delivering injections, and providing follow-up care. Because, to our knowledge, there exist no competing local or State standards for allergen immunotherapy, we considered the Joint Task Force standards to be “professionally recognized standards of health care” under section 1156(a)(2) of the Act.

As part of “Medicare Antigen Preparation” (OEI-09-00-00530), published in 2000, the Office of Inspector General evaluated a probe sample of allergy services. Based on medical review, most beneficiaries in the sample received substandard and poorly documented care. 

These concerns led us to contract with practicing allergists and otolaryngologists to review the medical records of a random cluster sample of 400 Medicare immunotherapy patients and 1,434 allergen immunotherapy and related services they received in 2001. We also contracted with a certified professional coder to determine if each service was documented adequately and billed with the correct code.

FINDINGS

Sixty-two percent of the allergen immunotherapy and related services allowed by Medicare in 2001 did not meet program requirements, resulting in $75 million in improper payments. 

Our medical reviewers found that 31 percent of allergen immunotherapy and related services allowed by Medicare in 2001 were not medically necessary (and, therefore, noncovered). These services generally were not indicated or were provided as part of an immunotherapy regimen that lasted longer than clinically acceptable. 

Furthermore, 7 percent of allergen immunotherapy and related services were billed with an incorrect code and 29 percent were undocumented. Six percent had multiple errors, yielding an overall error rate of 62 percent, resulting in $75 million in improper payments.1

In the absence of national guidance, some carriers have adopted policies that diverge from professionally recognized standards of health care. National Medicare coverage and payment guidelines regarding allergen immunotherapy are very limited. In the absence of national guidelines, carriers have implemented policies that are sometimes inconsistent with Joint Task Force standards. 

For instance, at least one carrier allows reimbursement for injections given at home, although the standards clearly state that, because of the risk of adverse reactions, shots should be delivered only in a clinical setting.

The care provided to approximately 70 percent of Medicare beneficiaries who received allergen immunotherapy in 2001 was inconsistent with professionally recognized standards of health care. In addition to the service-level review, our reviewers also examined the entire course of treatment for each beneficiary in our sample. 

In approximately 70 percent of cases, the reviewers found that some aspect of the beneficiary’s allergy testing or treatment departed significantly from one or more of the Joint Task Force standards. For example, 20 percent of beneficiaries on allergen immunotherapy did not have conditions for which allergy shots were appropriate or did not have allergy tests that showed reactions to any potential allergens.

Treatment for 13 percent was contraindicated by concomitant conditions or the use of beta-blockers. Nearly 22 percent of beneficiaries received shots for longer than is acceptable, because they were not experiencing any clinical benefit or had been receiving shots for many years without being reassessed. 

Other examples include identified situations wherein beneficiaries received allergy tests that lacked proper controls, injections that were delivered in a nonclinical setting, and follow-up care that was too infrequent to adequately monitor the patient or involved unnecessary repeat allergy tests.

RECOMMENDATIONS

The large number of payment errors we found indicates that allergen immunotherapy is a significant Medicare vulnerability. That vulnerability has expanded as Medicare allowances for allergen immunotherapy and related services have increased since we conducted our inspection. To address this growing problem, we recommend that the Centers for Medicare & Medicaid Services (CMS):

Require carriers to educate physicians who provide allergen immunotherapy to Medicare beneficiaries about coverage, coding, and documentation requirements. Develop national coverage criteria for allergen immunotherapy based on professionally recognized standards of health care.

In addition to these recommendations, we have forwarded information on the medically unnecessary, miscoded, and undocumented services identified in our sample to CMS for appropriate action.

AGENCY COMMENTS

In its comments to our draft report, CMS stated that it is prepared to develop and disseminate educational materials and develop new coverage criteria for allergen immunotherapy services. CMS has identified two possibilities for developing national coverage criteria for allergen immunotherapy: adapting criteria directly from current professional society standards or opening a National Coverage Determination. 

CMS states that either option would require up to 12 months to fully implement, and that educating physicians on existing coding, documentation, and coverage requirements depends on the course chosen for developing national coverage criteria.

OFFICE OF INSPECTOR GENERAL RESPONSE

We appreciate CMS’s support for our recommendations to increase physician education and to develop national coverage criteria based on professionally recognized standards of health care. Since the CMS letter identifies various methods for implementing the recommendations, we request that CMS provide to us an action plan that clarifies the specific steps it intends to take to fully implement the recommendations. 

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