Insurance Contract Clarification

Understandably, there is a lot of confusion throughout our membership and their staff regarding all the different types of  insurance contracts. We wanted to try to shed some light on this subject and clarify the different types of contracts that you are accessing in Oklahoma as an OSCIPA member.  Let’s start this discussion by separating out your OSCIPA contracts and your non-OSCIPA contracts. Your OSCIPA contracts are

  • AETNA
  • Ancillary Care Services
  • Community Care
  • Coventry
  • First Health
  • Global Health HMO
  • Preferred Community Choice 

AETNA, Community Care, Coventry, and Global Health are insurance companies. Each have their own set of claim processing guidelines and fee schedules.

Then we have Ancillary Care Services, Preferred Community Choice and First Health which are independent networks. First Health is an independent network that contracts with self insured groups. There is usually a lot of confusion when it comes to recognizing the difference between an insurance payor and an independent network.  An independent network contracts with a group of healthcare providers using an agreed-upon fee schedule. Their primary clients are Third Party Administrators and self insured employer groups who process and pay the claims and determine the benefits for each of its subscribers.

In Oklahoma there are three major insurance companies that are NOT in OSCIPA and they are Blue Cross Blue Shield of Oklahoma (BCBSOK), CIGNA, and United HealthCare (UHC). BCBSOK is owned by Health Care Service Corp.(HCSC) out of Illinois along with Texas BCBS, New Mexico BCBS, and Illinois BCBS. CIGNA chiropractic contracting is done by an IPA in Texas. UHC & Pacificare contracting is done by OptumHealth Care Solutions, Inc. HealthChoice is another non-OSCIPA plan operated by the Oklahoma State and Education Employees Group Insurance Board (OSEEGIB).

Then you have Medicare and an assortment of Medicare Advantage Programs. OSCIPA has contracts with AETNA, Community Care, and Generations HealthCare HMO Medicare Advantage Programs. There are several others that we do not have contracts with.

Other than CIGNA, if you are contracting with OSCIPA, BCBSOK, UHC via Optum Health, HealthChoice and Medicare you have access to 90% of the managed care patients in Oklahoma as an in network provider. Beyond that 90% is where the problems begin!

Recently OSCIPA has cancelled three contracts, two of which were for reasons that we felt were not chiropractic friendly. Problems start to occur when independent networks as described above start to move into the areas of Worker’s Compensation, Auto Medical Networks, medical discount programs, and exclusive provider networks. (See our past blog titled Silent PPO’s). Many times these were networks that started out in the Group, PPO, and HMO areas but then expanded their scope into the areas I have mentioned above.  They do this through their contracts with companies or other networks that specialize in these areas. OSCIPA is trying to do its due diligence to protect you from these unfortunate occurrences but it is not easy to do as independent network client lists can total into the thousands when added together. We need to all work together on this as you are the ones that will get an EOB back with an auto med pay discount on it. You probably then ask yourself, “how did I get involved in this and more importantly how do I get out of this contract?!” We have sent out several Eblasts and I have written the blog on Silent PPO’s as well to help you identify these situations.

Now let’s move back to the 90% of the managed care business. This leaves 10% of the state’s managed care business, and you have to decide whether or not each of these contracts are worth continuing in. Always remind yourself that when a network contracts with Worker’s Comp or Auto Med Pay, there is going to be a discount taken off your usual charges with no patient steerage in return. These are patients you would have had anyway. If you are in any medical discount program for your cash patients please remember OSCIPA has the ACCLAIM program, an individual discount program that benefits you, your patients, and OSCIPA as well. If you are offered the possibility of getting into those plans make sure you clearly understand the requirements and fees you are agreeing to and remember that directed patient volume will be a relatively small number.

Even though we have cancelled our MultiPlan contract, you may still be a provider through an old individual agreement (See May 25, 2011 Eblast). And if you are in Optum Health you may only opt out of Worker’s Comp plans and Auto Med Pay plans but not any of their national health plans (See Eblast dated February 10, 2011). The auto and work comp opt outs must be in writing!

A final suggestion would be that you identify all the carrier and network contracts you have signed and put them in a single location for easy access. And when you are verifying coverage make sure you note which network or carrier is identified on the patient’s ID card and match that up with your existing carrier/network files. If you are not in network then go to our website and look in our Eblast directory to see if we have an Eblast regarding that network or carrier so that you can read our recommendation as to whether or not to sign up with them.

If you file through Infinedi we have a complete listing of all your 2010 OSCIPA activity with the top 25 carriers/networks. We can make this available to you so that you can track all the contracts you have patients with. This will also give you your profiling data and an indication of how you compare to the overall OSCIPA totals. If you would like a copy of your report please email us at info@oscipa.com.             

 Larry Bridges, Ph.D.
OSCIPA Executive Director

    

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OSCIPA 2011 Legislative Summary

First of all a special thanks to our OSCIPA lobbyist Dennis Adkins for keeping us informed of both the content and status of bills of interest to the chiropractic profession. I will also acknowledge the efforts of Dr. Dan Post our legislative committee chairman in his efforts to follow each bill identified by Dennis as a bill that could impact the profession. The OK-Legislature stood adjourned as of May 27th. Governor Mary Fallin put an exclamation point on a successful legislative session by signing 8 bills that were major republican priorities this year.

WORKERS COMP BILL: SB 878 regarding worker’s compensation drew a lot of attention from chiropractors statewide. A lot of misinformation surfaced during the latter days of this bill going through the house and the senate. OSCIPA was very much involved in following this bill through the efforts of Dennis and Dr. Post as to whether or not we should have collectively opposed this bill.  According to OSCIPA Board Chairman Dr. Dan Post, “this bill passed the Senate 48-0 and the House 81 -8. In the final analysis it was decided that it did not adversely impact the majority of the chiropractors so the decision was made not to get overly involved without a common cause to do so.” Dr. Post’s summary of this bill is that “chiropractors can no longer be IME’s for the Work Comp Court and can no longer testify in the court on PPI (Permanent Partial Disability) cases. Only MD’s and DO’s are now allowed to do this.”

He also suggests that it does legislate that the Physician Advisory Committee (PAC) will begin following “Evidence Based Guidelines” for the treatment of cervical, thoracic, and lumbar spine injuries. It specifies the most common CPT codes used for these injuries. This may give the majority of the chiropractors a possible avenue to get back in the WC care arena, as we all know that virtually all the “evidence” shows manipulation to be one of the best treatments of choice for many of the referenced conditions. Even though chiropractic lost some of its status as physicians of the court there may be some hope of getting back into this arena of care. However we must always be on guard to prevent these types of restrictions in other areas of the law!

CHIROPRACTIC ASSISTANT CERTIFICATON: Another bill that we have been following that was signed by the governor is HB 1658 which specifically impacts Chiropractic Assistants by creating a CA certification requirement. This means that in the future unlicensed chiropractic assistants as we know them today will be required to be certified to continue to deliver health services to patients. Insurance companies have traditionally been struggling with this issue when paying claims that may have services on them that were not done by the chiropractor but by his/her CA. This effort will also improve the professionalism of the profession by having all CA’s certified.  As you may know, OSCIPA has partnered with Dr. Rosalind Canham, creator of Professional Online Education in Arizona. Not only has Dr. Canham written CA certification programs for several other states, but she also created one just for Oklahoma CA certification.  We are still waiting to find out whether or not this program will be accepted by the state of Oklahoma for use in educating CA’s for their certification requirement.  This bill requires the board of Chiropractic Examiners to promulgate rules regarding certified chiropractic assistants.

SB 0299 was also signed by the Governor and changes the authorization of the Board of Chiropractic Examiners to employ one or more investigators to the authority to contract with one or more investigators. It requires any investigator to be certified as a peace officer by the council on Law Enforcement and Training and have statewide jurisdiction to perform the authorized duties.  It requires an advisory committee to meet and determine whether a complaint merits further investigation after an initial complaint is received.

A final note on the work that this House and Senate did during the 2011 session is that SB 0772 creates a 15 member Business and Professional License Facilitation Task Force to study the existing governmental models in Florida, Ohio, and other states that have established a central contact point or agency for the facilitation of the majority of business and professional licenses and applications. This would be leaning toward creating a Healing Arts type board for all health care professionals.

COPAY EQUALITY: We at OSCIPA have encouraged our lobbyist to look into the new Co-Pay Equality law passed in South Dakota this year. This law says that no health insurer may impose any copayment or coinsurance amount on an insured for services rendered by a doctor of chiropractic licensed pursuant to chapter 36-5 that is greater than the copayment or coinsurance amount imposed on the insured for the services of a primary care physician or practitioner for the same or similar diagnosed condition even if a different nomenclature is used to describe the condition. 

Larry M. Bridges, Ph.D.
Executive Director,
OSCIPA
Posted in Legislative & Political Issues | 1 Comment

Implementing a New Flat Rate Membership Fee

Thirteen years ago Brooke Hawley and I began working for OSCIPA. I came from both an insurance and educational background and Brooke came from a business background. At that time prospective members were paying monthly dues by having their insurance checks come back through OSCIPA then reduced 5%, and the balance of the check was sent to the participating chiropractor. Due to a delay in payments to the chiropractors and other administrative issues, in 1999 this system was changed to a per claim charge. Then in 2008 OSCIPA went to a tiered system that included a formula which took into account patient count, patient visits, and service count and ranked you in with your peers that were all filing through Infinedi. If you were not filing through infinedi your rates were calculated from past claim history that we had available. There were both pros and cons when we evaluated each of these systems. The OSCIPA Board of Directors and the OSCIPA staff were always trying to find the best way to bill and the fairest way to bill on behalf of every member in OSCIPA whether you were metro or non-metro or high or low volume. Many of you have expressed concerns over having your monthly membership fee calculated based on claim data that was a year old because it isn’t always an accurate reflection of how well your business is doing presently. 

We have discussed an alternative flat rate system for several years. Up until this year we simply did not have the membership numbers to be able to implement one flat rate for all and still reach budget neutral figures that are needed for us to continue our added value offerings and fulfill our legal, contractual, and financial commitment to run an Independent Physicians Association. Since we now have the membership numbers, including our non-Infinedi users, we can move everyone to a flat rate for all our members while meeting all the above mentioned commitments. The OSCIPA Board of Directors unanimously voted in favor of this payment method on April 19, 2011 at our regular board meeting and annual membership meeting! 

Under the new Flat Rate Structure there will be two (2) monthly rates.  The regular monthly rate for most members will be $125 per month.  However, for those who graduated from a licensed Chiropractic College or set up an individual practice in Oklahoma in the last three (3) years, the new member rate will be $75 per month for the current year plus two (2) additional calendar years.  After this time period these providers will move to the regular member monthly rate in effect at that time. It is that simple. However, this decision was not easy, as there are many ways to look at each of the above mentioned options. When we did comparative data reports it seemed that this method presented the most logical and fair fee structure that we could use. When we completed our entire pros and cons list, this system had by far the most positives with the least concerns.

The new flat rate system will begin June 1, 2011 and will be reflected on your July 2011 statement.

 Selected positives of the new flat rate fee structure are listed below:

  • A flat rate for all does not discriminate against any certain type of practice.
  • A flat rate doesn’t rely on year-old claims data to calculate a membership fee.
  • This system allows us to give new doctors and/or new practices a lower flat rate while they are building their business.
  • One flat rate gives members the assurance that their monthly membership fee remains the same rather than sharply increasing or decreasing from one year to the next.

In choosing the appropriate monthly fee that would be budget neutral as well as affordable for our members, we took the time to analyze the current reimbursement rates of OSCIPA contracted payors and networks along with the most frequently billed services per visit by our members.  What we observed is that it takes about 3 or 4 visits per month on average from a patient who is insured by one of the contracts that you access through OSCIPA to equal the flat rate that we have implemented. That includes out-of-pocket cost shares that you are collecting from your patients.  (Again, for new graduates and/or new practices, the flat rate is lower for a period of time.) 

INFINEDI has been an OSCIPA primary business partner since its inception in 1994. As many of you know we have been billing you on INFINEDI’s behalf for the past 3 years as a convenience for you in that you would only have one bill coming from both entities. However, as of June 1, 2011 INFINEDI will be doing their own billing again. This change will not affect your current BOLD PACKAGE flat rate from INFINEDI. It will remain $50.00 per month as compared to their normal charge of $75.00. However, this $50 rate does not include claims that are dropped to paper and some ERA’s.  Within the process of OSCIPA billing for your INFNEDI services we have been paying any extra charges you may have received on top of the $50.00 per month rate for any claims that had to be dropped to paper and mailed in and for any electronic remittance advices (ERA’s) you have been receiving (not including Medicare and BCBS ERA’s which are free). These charges are $0.45 for paper claims and $0.15 for Q-ERA’s. Please be aware that these additional charges and any other added values from INFINEDI will now be shown on your INFINEDI bill each month. For those of you that do not use INFINEDI, Brad Cost INFINEDI President, and I will set up some meetings later this summer for all of you so that you can really see why 80% of our members use INFINEDI.

Any time you change any fee structure that raises fees for some there is concern, but no matter which system we would have used this would happen. Had we used the current system, 50 of you would have had an increase in your monthly payment and that would have been using last year’s data. The above system is current and it also takes into consideration that we have now moved into the “Association Business Model” while keeping our priority within the Managed Care Contracts that we have. In addition to this we are dedicating monies and time on your behalf to lobbying, advertising, communications, and CE Seminars and CA Webinars. The bottom line is each of you will be billed the same amount while having the same accessibility to the contracts and to any of our added values. Earlier I mentioned that Brooke and I had been here 13 years. Amy has been with us for 5 and a half years and Elizabeth 9 years. Dewey Hicks has been a consultant for OSCIPA for 13 years and an on staff data analyst for a year and a half. Each one of us is here to serve you as well. I hope this news is as exciting to you as it is to us. Not only are we here to serve, but we have excellent business partnerships that enable us to function as a professional and respectable association. Primary Business Partners are Jay & Associates, PC (Accounting firm), Robert Sartin at Barrow & Grimm (Legal firm), INFINEDI (Electronic Data Exchange), Hampton Creative, Inc (Advertising & Marketing), and Dennis Adkins of A&A Advocates (Lobbyist).

Our Board of Directors, myself, our staff, our business partners, and each one of you make up a team on behalf of chiropractic that is unmatched. It is our hope that each of you will continue to support us so that we will be able to persist in moving forward to grow both as a Chiropractic Association and as an IPA!  In addition, OSCIPA will continue its efforts in helping your practice attract more patients through our contracts while keeping you current on network and carrier changes.  We will also continue to improve and build on our advertising, legislative, educational, and communication programs.       

Larry Bridges, Ph.D.
OSCIPA Executive Director
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What You Need to Know About Medicare Advantage Plans

UNIVERSAL AMERICAN: Last week many of you received a packet from Universal American. It took us some time to figure out who they were and why you were sent these packets individually if OSCIPA was the contracting entity. After a few phone calls, digging through files, and reviewing past e mails we discovered not only who they were but how we became involved with them.

In the beginning Global Health Provider Network (Oklahoma City Clinic) and Generations Healthcare operated under the same Oklahoma License of Global health, Inc. and all functions were integrated. Then on 01/01/2009 Global Health and Generations Healthcare separated their businesses and began operating as two different entities, although still operating under the same license.

Universal American (UAM) is the parent company of Generations Healthcare HMO, Today’s Option PPO, and Today’s Option PFFS (private fee for service). UAM offers a portfolio of life and health insurance products for seniors (like me) and self-employed individuals as well as administrative services (ASO’s) for insurance and non-insurance programs in the senior market.

In 2011 the Oklahoma Insurance Commission granted Generations Healthcare a new license under the name of Today’s Options of Oklahoma. Due to this name change UAM is recontracting with all providers. That is why you were sent the addendum and the “Acknowledgement of Receipt & Understanding” reply form. Today OSCIPA received the same packet and I will send back the “Receipt & Understanding” letter on your behalf. All you need to do is keep the information you received for your own records and file it away as Universal American. This all began with our exclusive chiropractic agreement with Global Health. We conveyed this to you in abbreviated form on the April 6, 2011 OSCIPA Eblast.

MEDICARE ADVANTAGE PROGRAMS: Universal American & its subsidiaries have several different types of Medicare Advantage Plans (MAPs). Medicare Advantage Plans are offered by private companies approved by Medicare. These plans provide all a member’s hospital and medical insurance coverage. Most offer Part D drug coverage and many offer extra coverage as well. Medicare pays a fixed amount for the member’s care as the private payor is assuming the risk. In addition most MAP members will have a monthly premium. Keep in mind these are not supplemental plans that pay secondary to Medicare!  These MA Plans replace the patient’s Medicare coverage.

There are four major types of Medicare Advantage Plans. They are HMO’s, PPO’s, PFFS, and SNP’s, (Special Needs Plans). HMO’s and PPO’s operate pretty much the same as other plans as far as access is concerned. However these plans only cover  chiropractic services that Medicare covers (i.e. spinal manipulation). All non-covered services are the patient’s responsibility.  The patient enrolled in a Medicare Advantage Plan usually has a co-pay for covered services rather than the regular Medicare deductible and coinsurance.  One major difference with a PFFS MAP is that their members are not restricted to an assigned network but each provider has to have agreed to the plan’s fee schedule. Any Special Needs enrollee must get their care and services from doctors or hospitals in the plan’s network.

Just to let you know I have been in a Medicare Advantage PPO Plan (BCBS Medicare Advantage) and I am currently enrolled in Community Care Senior MAP. In both plans my premiums have been under $50.00 per month, and the care I have received is what any of us would expect from any participating providers including chiropractors.

If any of you ever have any questions about how these plans work, feel free to contact me by email or phone.

Larry Bridges, Ph.D.
OSCIPA Executive Director
Posted in Health Plans & Insurance Topics | 1 Comment

Let’s Talk Politics

The Patient Protection and Affordable Care Act (PPACA) will allow individuals and businesses to purchase Health Insurance directly through State Health Exchanges. In Oklahoma these Exchanges are called “Health Insurance Exchanges”. These exchanges will offer a choice of qualified health plans (QHPs) that will vary in coverage levels but meet certain standards in categories of care and limits on patient cost sharing. How will this affect chiropractic?

Essential Health Benefits Requirements must cover 10 general categories of service. Further details of the Essential Health Benefit packages will be defined by the Secretary of Health and Human Services (HHS) based on the scope of benefits offered by a typical employer plan. The Summit GR Committee fully believes that the services that doctors of chiropractic can perform could indeed fit in several of the 10 Essential Benefits named in the PPACA law. Remember, Doctor’s of Chiropractic are physician level providers of care.

Just so you know I have attended all 3 of the Oklahoma Health Insurance Exchange meetings on your behalf. I am also on a workgroup committee entitled Carrier and Plan Selection. Our first workgroup meeting is this Tuesday in OKC. This committee is co-chaired by Mike Rhoads, Deputy of Health Insurance and Laura Brookins, Executive Director of the Oklahoma Association of Health Plans; both of whom I have known for quite some time. Both COCSA and the ACA have encouraged chiropractic representatives to serve on these types of committees and workgroups. I selected this particular workgroup because one of its main issues is the Minimum Essential Benefits that an exchange must provide. COCSA and the ACA seek to ensure the full applicability of Section 2706 (Non-Discrimination) to insurance plans (including ERISA and State Exchange Plans) as the primary mechanism to ensure that doctors of chiropractic can provide services in the newly regulated environment created by PPACA – and to ensure no language is adopted at the federal level relative to “essential benefits” that would specifically exclude the inclusion of services provided by, or participation of DC’s. This involves making this position crystal clear at the highest levels of the HHS Department, via the Gephardt Group and Senator Tom Harkin, Chairmen of the Senate HELP Committee, the Committee of Jurisdiction over the key elements of PPACA about which chiropractors are concerned.

In addition to this involvement do not forget that OSCIPA has employed former House Member Dennis Adkins of A & A Advocates, Inc. as our lobbyist. Dennis and I both are involved in a group of non-MD/DO health care associations that have formed a legislative alliance in which we can help each other when appropriate. And as I have mentioned before if any of you have any legislative concerns or issues you may contact Dennis at dennis.adkins@ymail.com.      

Larry Bridges, Ph.D.
OSCIPA Executive Director
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Oklahoma Contracts

This week I would like to continue my discussion from the last blog regarding contracting. Our last blog topic was “Silent PPO’s”. Since that time, OSCIPA has cancelled its contract with Prime Health Services. This contract will end on June 11, 2011. The primary reasons for terminating this relationship with PHS were their continuing involvement with networks that would discount auto claims (IHP – State Farm) and exposing you to Complimentary Programsl. CIGNA and United Healthcare are also involved in these types of programs so even if you are out-of-network you have to watch your EOB’s closely. As you probably know by now Optum Health also went down this same road with Integrated Health Plan (IHP) & State Farm, however you could opt out of this program.

Complimentary Networks are networks that take discounts from you even when you are an out-of-network provider with the primary carrier. Integrated Health Plan (IHP) also has a contract with MultiPlan as a Complimentary Network however the OSCIPA contract with MultiPlan does EXCLUDE these Complimentary Programs! I had mentioned several other networks that were involved in this type of activity in the last blog. This list continues to grow with networks such as United Medical Services (UMR) and Comp Care of the Ozarks. However when Prime Health Services goes away on 06/11/2011 these issues will go away as well. But others will surface so keep us informed if you find any of our contracts to be involved.

Let’s talk about the OSCIPA contracts. Employee Health Network, Oklahoma Health Network, and currently Prime Health Services all only process paper claims. If you are billing these electronically, Infinedi drops them to paper and mails them. These are all very low volume networks in Oklahoma. AETNA and Preferred Community Choice are our highest volume networks and process claims electronically.

Community Care, Coventry, and First Health-although not real high volume-are certainly important to our IPA. Ancillary Care Services and Global Health are in the next category but growing in numbers. 

The highest volume carrier outside of OSCIPA is BCBSOK which is by far the largest carrier in the state. The others are United Health Care and HealthChoice followed by CIGNA (Chironet & ASHN) and Humana who are low volume carriers. Other low volume players in Oklahoma are Mutual Assurance who uses PCC & PHCS networks to price their claims, PacifiCare who is owned by UHC, UMR who uses MultiPlan & UHC, Waterstone Benefits who uses PCC, and Principle Life who uses PCC & ACN. Altogether, the above mentioned payers and networks total probably about 95% of the Managed Care Business in Oklahoma.  Remember that there is a difference between a payer and a network. There is still some confusion about those terms.  For example, Preferred Community Choice is not an insurance carrier or payer but a network that many payers use.

If you receive recruiting letters from other carriers/networks not mentioned and some mentioned above I would suggest you call us to check the viability of moving forward to being in-network with them. I will always encourage you to use the OSCIPA ACCLAIM Card as your discount card of choice over any other vendor out there. This helps your patient, you, and us as well. There are many medical discount programs out there so be aware of what you are signing. Check your contract file routinely to actually see what networks you are in. Then look at your volume in that network, the current fee schedule, and your “hassle factor” to determine continuation in that program.            

Larry Bridges, P.h.D
OSCIPA Executive Director

 

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Silent PPO’s

A Silent PPO is an organization that accesses a discounted fee schedule for services from a physician without direct authorization from the provider.  You may have experienced something like this before: your claim has been discounted due to participation in a PPO or network, yet the payer pays the claim according to the patient’s out of network benefits.  Maybe you didn’t even know you were contracted in this PPO.  A Silent PPO buys, sells, leases or otherwise transfers provider discounts without actually referring or giving incentives to patients to see a provider in that network.
OSCIPA has tried very hard to prevent any potential silent PPO’s from surfacing on one of your EOB’s. Once a Silent PPO shows up on your EOB, most of the time it is too late to do much about that particular claim. However we should be notified right away so that we can figure out the connection between you the provider and this unknown network you have been enrolled in. Additionally, when this happens you need to call that network and ask them why you are in network with them, and if OSCIPA is not involved then ask them to fax you a signed contract with your doctor’s signature on that execution page. You should also ask them how you can opt out of this program as soon as possible whether you get the signature page or not. If it involves OSCIPA, call Amy or better yet, email her the details with a copy of relevant documents and we will do the research. The only way we will know about it is if you tell us!

One of our doctor’s recently received a letter from Integrated Health Plan (IHP) indicating that IHP had partnered with Multiplan. Their contract with Multiplan appears to be a complimentary network which is designed to compliment a primary PPO if the doctor is not in that patient’s primary PPO network. Many of you know that OSCIPA opted out of Multiplan’s complimentary program back on July 1, 2009. I have contacted our representative there just to be sure OSCIPA is not a part of this. But I would still recommend that if you received this letter from IHP that you call them and see if they have you as in- network. Then send them an opt out letter right away. You have 30 days from the date on the letter to opt out by notifying them. Call their Provider Relations department and find out exactly what you need to do. 

This leads me to another situation that has occurred involving Integrated Health Plan (IHP) again and their relationship with State Farm that ultimately ended up with Optum Health as a participating network for automobile accident claims. I was told that a few months ago Optum Health sent out a new client letter saying that IHP was going to be one of their clients. I have not seen this letter but if you got it and did not know that State Farm was a part of this and did not opt out at that time, you could have been a participant of this and not know until you received a discounted EOB on a State Farm claim from Optum Health or IHP. Fortunately Optum Health followed up with another opt out opportunity and we were notified of this from one of our members. We responded to each of you on February 10th with an OSCIPA Eblast and a template opt out letter with instructions on what to do. This is yet another example of a silent PPO network scenario.

Be aware there are two more networks that you need to know about, and they are Healthcare Solutions (www.healthcaresolutions.com) and Three River’s Provider Network (www.trpnppo.com) that are major players nationally in the PIP (auto Med-Pay) and Workers Comp arena. I am suggesting that you contact both of these networks as well as IHP and see if you are in or out of network.

As mentioned above, we have contacted Multiplan to see if OSCIPA is involved in their IHP complimentary program and we are in contact with Prime Health Services regarding their complimentary contracts with IHP and Coalition America. We will update you on the results of these contacts as soon as we hear from them.         

Larry Bridges, Ph.D.
OSCIPA Executive Director
Posted in Health Plans & Insurance Topics | 1 Comment

The Importance of Data

As a doctor and a business owner, you probably compile and look at reports several times a year that paint a picture of your practice, the patterns of  treatment that you provide, and your patient demographics.  Most likely, you compare your financial data each year to see how you are progressing in your business and where you can improve and cut costs.  They say that knowledge is power. In this case, it’s the power that helps you succeed and stay on top of your business practices.   That knowledge is acquired through the gathering and analyzing of accurate and relevant data.  As an organization that services a network of chiropractors, we too benefit from knowledge obtained through data analysis.

OSCIPA is currently in the process of reviewing your 2010 data that is furnished to us by the clearinghouse Infinedi at the end of each year. If you send your claims through Infinedi then you are included in this process. If not, then we are unable to include your claims data in this analysis. This is unfortunate for you as well as us. The data we collect is very powerful in many ways. This data is used in our Utilization Management Educational Program. This process of gathering data is also expected by us from each of our contracting carriers & networks. We also use the data to help our membership by compiling averages such as the average billed charge for each CPT code that our members use, the most frequently used procedures, and the most frequently used diagnosis codes. It is this data that enables us to be able to create for you the laminated coding sheets we mail to you each year. These sheets include the most commonly used procedure and diagnosis codes for you to use as a quick reference.  Also, having access to the average charges per service can assist you as a doctor in determining if you are overcharging or undercharging for your services.  Viewing your own data that we provide can help you compare your billing and treatment patterns to your colleagues, giving you a helpful perspective on how your patterns are viewed by insurance carriers. 

Another benefit of this data is to keep track of managed care patterns.  We are able to create the full year profiling data as mentioned above for all non-OSCIPA carrier claims and all OSCIPA carrier claims. We separate out the above two categories from the Medicare claims as well as the claims that are droppped to paper by Infinedi. We also seperate out any other payors of claims that are in the top 25 in claims volume. This would include low volume non-OSCIPA carriers, TPA’s, med pay insurance companies and worker’s comp carriers. This enables us to really know what is happening in the managed care arena across the state of  Oklahoma. Dewey Hicks who has been analyzing data for over 25 years is on our staff and sorts through all of the data that Infinedi sends us and then creates meaningful reports in this area. Currently we also create our monthly membership fee structure by using this data.

The moral of this story is that we must all cooperate in order to make sure that each of you makes the right decisions when operating in the managed care arena. By using Infinedi we can all work together more effectively with many desirable outcomes, one of which is to unite as a group when filing claims and to make sure that all claims are coded correctly and consistently when leaving your office. However, if we have members who aren’t using Infinedi, then our collection of data is somewhat incomplete. We can’t include those members in the process and therefore we lose a valuable opportunity to have the data of an entire organization. Using  one clearinghouse like Infinedi as a medium to compile data and analyzing this data on a regular basis is of great importance to  us as an organization and to you in your profession and your individual businesses.

Larry Bridges, Ph.D.
OSCIPA Executive Director
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Health Care Legislation Update

Last week we introduced Dennis Adkins as our chiropractic lobbyist this year. Mr. Adkins routinely submits to us a current tracking report of all legislation that is relative to chiropractic and the health related field. He also submits a Chiropractic Monthly Lobbyist Update that we have attached to this week’s blog. The reason being, we want all of our chiropractic members and their staff to know that we are whole heartedly involved in the Oklahoma state legislative process on your behalf.

If you are a doctor reading this, please let your staff know what we are doing here. If you are a staff member please let your doctor know what we are doing as well. OSCIPA has over 350 doctors and when you combine that count to each doctor’s current employees, we have a grassroots program in its beginning stages. If any of you have any legislative concerns please feel free to contact Dennis Adkins at dennis.adkins@ymail.com. And please also copy me larry@oscipa.com and Dr. Dan Post at drpost@postclinic.com. Also, if any of you have a direct relationship to any legislator please let Dennis know right away! If each of you does get involved in this process (and if needed we could also involve your patients in our efforts) then we would have the potential for a huge “grassroots” base. Do not forget that Dennis and Dr. Post will be available to meet and greet all the February 26th CE seminar attendees in OKC after Saturday’s session at 5:00 PM in the lobby at a cash bar set up for this purpose. Please help us move forward on this effort as many of you listed “legislation” as a priority in our member’s survey. We can make a difference in a very positive and well organized way!     

Larry Bridges, Ph.D.
OSCIPA Executive Director

 

FROM DENNIS ADKINS AND A & A ADVOCATES

Governor Fallin’s State of the State:

Fallin was introduced for the first time as governor to the House and Senate as it convened for its second joint session of the 53rd Legislature. In a point of personal privilege, she remarked on the fact that it was the first time for a woman to deliver the State of the State. “Twenty years ago, I sat in the back of this chamber as a freshman legislator,” she said. “For 16 years, I stood behind the governor, and I was the woman behind the man. Today, I get to wear the britches.” She said it was like Oklahoma singer Toby Keith’s song, “How Do You Like Me Now.”  In her formal remarks, Fallin asked for the Legislature’s help in addressing several areas of reform, including: workers’ compensation reform, lawsuit reform, state government reform, pension reform and education reform. Tax credits also remain a focus, with Fallin expressing her support for a review of those tax credits that has been initiated by Rep. David Dank, R-Oklahoma City, and Sen. Mike Mazzei, R-Tulsa.  “I’m looking forward to the results of that study, and our course of action will be real simple: only tax credits that create jobs will stay,” she said.                                                                                            

House:                                                                                                  

On its second day of work Tuesday, the House second read a number of bills and decided to adjourn due to impending weather.House Floor Leader Daniel Sullivan, R-Tulsa, asked that the House request the Senate’s permission to adjourn more than three days, an action that is requiredunder the Oklahoma Constitution. “In light of the great distances many House members have to travel when returning to their home districts, it is prudent to allow them to make those drives now before road conditions potentially became icy and dangerous,” said House Speaker Kris Steele, R-Shawnee, in a news release. “While this delay is inconvenient, it will not result in any major disruption of the legislative session, and we will resume regular activity next Monday.”

Senate:

An approaching winter storm led to the Senate adjourning early on Tuesday without discussing joint rules related to appropriation bills because of members expressing concern about the condition of roads and highways. The Senate also canceled all committee and subcommittee meetings for the week. The Senate will reconvene next Monday, Feb. 14, at 1:30 p.m.

 Dennis Adkins
A&A Advocates
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Meet Our New Lobbyist

OSCIPA recently hired former House member Dennis Adkins of A&A Advocates, Inc. as our new lobbyist.  We’d like to take the time to introduce Mr. Adkins to you. We have included in this week’s blog his past achievements as well as his pre-session legislative report.  Mr. Adkins will also be available to meet and greet our members at the upcoming relicesning seminar on February 26th after class ends at 5:00PM.

About Dennis Adkins and A&A Advocates

A & A Advocates, Inc.
Government and Public Relations Strategies
P.O. Box 54413, Oklahoma City, OK 73154
Phone: 405-706-2615   Email:  dennis.adkins@ymail.com
 

Government  affairs clients currently include; AT&T, AES Shady Point, ITC Great Plains, Newfield Exploration, Oklahoma Municipal League, Oklahoma State Chiropractic Independent Physicians Association, Oklahoma State Employees Association, Plains Pipeline, Sunoco Logistics, Tarrant Regional Water District.

Legislative Career Highlights:

Dennis Adkins elected to the House of Representatives in November of 2000 and served to November 2008. 

He is the past Chairman of the Energy, Utility, Aerospace, and Technology Committee for the Oklahoma House of Representatives.  Chairman Adkins’ responsibilities included jurisdiction and oversight of Oklahoma’s oil and gas industry, telecommunications and technology, mining, aerospace industry, as well as, all electric and water utilities. 

Representative Adkins was also served as a member of the Public Health Committee for six year.  Adkins was named to the Leaders on Public Health Policy shortly after being elected in 2000. 

Chairman Adkins has testified before the Environment and Public Works Committee of the United States Senate with respect to the energy industry and its relation to carbon emissions and climate change.  

In addition, Adkins served on the Executive Committee of the International Energy Council, a leading organization of energy producing states, Venezuela, Canada, and China. 

Adkins was selected by the International Republican Institute to serve as an official observer of the first democratic Presidential elections in Macedonia. 

Representative Adkins was also chosen by the American Council of Young Political Leaders to participate in a United States mission to Tanzania and Uganda to study emerging issues with regional African leaders. 

Representative Adkins’ legislative career was highlighted by being twice named Oklahoma Independent Petroleum Association legislator of the year. 

 He was also named the Higher Education legislative newcomer of the year, American Royalty Council legislator of the year, and Industrial Electric Consumers legislator of the year. 

 He was selected to participate in Leadership Oklahoma and is now a lifetime member of the organization. 

 In addition to the Energy and Public Health Committees, Dennis served on the powerful Appropriations and Budget Committee, the Revenue and Tax, and the Environment and Natural Resources committee in the House of Representatives. 

Previous Employment and Education:

Prior to the legislator, Adkins served the State of Oklahoma in professional positions within the Department of Corrections, Department of Human Services and the Department of Rehabilitative Services.

He graduated from Northeastern State University in Tahlequah, Oklahoma with a Bachelor of Arts in Political Science.

2011 Pre-Session Legislative Report

The 2011 legislative session opened on Monday, February 7 and the face of Oklahoma’s government will be significantly different than at any time in our history.  Both houses of the legislature are now solidly controlled by Republicans.  Of the 101 members in the House of Representatives, 70 are Republican―32 of the 48 members of the State Senate are Republican.  But that is only the beginning of the story.  Mary Fallin, the state’s first female Governor, is a Republican, as is the Lieutenant Governor, State Treasurer, State Auditor and Inspector, State Insurance Commissioner, State Labor Commissioner, and the State Superintendent of Public Instruction.  This dominance by the Republican Party is sure to change the philosophy and direction of the state for years to come. 

What can be expected from the new legislature and executive branch?  The most pronounced change from past governments will be a much more conservative approach to the issues facing the state.  That conservative approach should manifest itself in a downsizing of state government (fewer agencies, departments and state employees), a rejection of any new tax increases, better financial management of state assets, and a much more conservative approach to social issues.  While it will take time for the new government to hit its stride, there is little doubt that change is coming.  The only question left to answer is how quickly the changes will occur.

As is always the case when a legislative session begins, the dominate issue will be the state budget.  Questions that must first be answered relate to the state’s revenue picture.  How much money will the legislature have to spend?  Once that question is answered, the legislature will turn its attention to balancing the budget by making cuts to various agencies and programs.  As it moves toward writing the FY2012 budget, legislators want to hear from state agency heads relating to ideas they may have about how budget cuts can be handled within their agencies.  Legislative leaders have already directed the various agency heads to develop plans that show how they could operate with as much as a 10% cut from their current budget level.  With little Federal Stimulus money left to help soften the blow, and with no reasonable prospect of additional revenues from tax increases, agency directors will be hard pressed to meet their budgetary requirements without additional layoffs of employees.  Every agency will be given an opportunity to make its budget case to both the House and Senate early in February.  Then the job of writing the FY’2012 budget will begin.

Before looking at the revenue projections for the state, here are a few facts about the Oklahoma economy.

  • The state’s jobless rate remains flat at 6.9%, while total employment fell by 3,100 jobs in November.
  • The state’s personal income grew in the third quarter of 2010 by 1%, down from 1.8% in the second quarter.
  • December revenue collections were up 13% from the year before.  Thus far, FY2011 revenue collections are up 7.5% over the previous year, but that is still 23% less than revenue collections in FY2009.
  • After 30 months of growth, the number of Oklahomans receiving SNAP (formerly food stamps) benefits declined in October, but Medicaid enrollment rose 2.1% in October, reaching the historically high level of 726,960 persons.

As the data above indicate, Oklahoma’s economy is improving but is still far from fully recovered.  Most estimates show that it will be FY2014 or beyond until state revenues return to pre-downturn levels.  By that time agency cuts will have trimmed the size of state government.  So a return to pre-downturn levels of revenue could result in sizable surpluses for the state.  However, there will be pressure to use much of the increased revenue to offset further cuts in the state’s income tax.  Reducing the state income tax continues to be a goal of the Republican majority.  The ultimate goal is to completely eliminate the tax in order for the state to compete with Texas when trying to entice out-of-state companies to relocate here.

Revenue projections for the next fiscal year indicate that the legislature will have between $200 million and $600 million less to spend than it did in the current fiscal year, a figure that is about $800 million less than in FY2009.  It is estimated that the total appropriated state budget will be around $6.3 billion, as opposed to $7.125 billion in FY2009.  Federal Stimulus dollars have largely been used, so the state will not have those funds to help offset its budget shortfall.  Almost every state in the country is facing similar, if not greater, deficit.  Due to its budget-balancing requirement, Oklahoma is better positioned to address its needs than other states―a few who are even facing the possibility of bankruptcy.  But that does not mean Oklahoma is without pressing problems.  Unfunded liability levels in our pension systems continue to be a concern and most counties and school districts are also facing financial pressures.

So the members of the legislature and new Governor Mary Fallin return to the Capitol with a significant challenge.  The revenue shortfall must be accounted for.  The state constitution prohibits deficit spending.  There is no desire to raise general taxes to help make up for the shortfall.  Specific fees, such as fees on health care providers, will be discussed.  But even those targeted fees will face stiff opposition, and their passage will probably require a three-fourths vote by both houses of the legislature to become law.  That means that further budget cuts seems almost a certainty.  Those cuts will come in the form of across-the board reductions or through targeted cuts to specific agencies.  The budgetary process over the next four months will determine that.

In addition to budget discussions, the legislature will be taking up many non-budget issues.  Look for the State Chamber of Commerce to play a bigger role in shaping those issues than it ever has.  Conversely, organized labor and attorney groups have lost supporters inside the House and Senate chambers.  Their influence has been diminished.  Because Oklahoma is one of the most conservative states in the Union, there will be an aggressive conservative social agenda as well. 

As of the writing of this report, a total of 2137 bills and 85 JR’s have been introduced for consideration during the 2011 session. House members filed 1,168 and 41 joint resolutions, compared to 1,153 bills and 31 JR’s in 2010.  There were a total of 969 Senate bills and 44 JR’s filed as opposed to the 1082 bills and 82 JR’s filed in 2010. A new Senate rule exempts appropriation bills from the deadline, an effort to improve efficiency and increase transparency in the legislative process. Over the next four months A&A Advocates will report on all the important issues that are before the legislature and Governor.  Some of the issue areas that will receive scrutiny in our legislative updates will include:

Insurance:  General insurance changes; health insurance bills; uninsured motorist

General Business:  Workers Comp changes; Tort Reform efforts; Quality Jobs  issues;  Aeronautical issues

Medical/Health:  Health Care Reform; Medicaid funding and changes; Chiropractic proposals, local control tobacco regulation

State Government:  Procurement legislation; Tribal issues; Ethics and Elections discussions; Privatization efforts; State employee reductions

Corrections: Private Prison efforts; Prisoner reduction efforts

Energy: Incentives for oil and gas exploration; Pipeline Issues; Electric Transmission; Electric Generation; Recycling efforts; Water transfer and development legislation

Tax and Revenue: Income Tax reductions; Miscellaneous tax incentives; Tax Credit changes

Education: Overall funding; consolidation proposals; Property tax changes; Private college legislation

Communications: Telecommunications legislation; Changes regarding 911 laws; Mobile phone/Hand held device restrictions

Local Government: Municipal bond law changes

Politics:  Majority party and minority party issues inside the House and Senate; State elected office politics 

In addition, the A&A Advocates’ updates will pass along any credible tips and rumors that we believe may impact coming actions in the legislature.  We will tell you what we’re hearing behind the scenes, so you can make sense of what you’re reading in the daily newspapers.  Each week we will also provide links to other internet sites that we feel might provide additional useful information.  The 2011 session promises to be interesting.  We look forward to working with you and will do our best to keep you fully informed.

Thank you to those of you who took the time to read this information we have posted for you here. 

 Larry Bridges, Ph.D.
Executive Director
Amy Prentice, BS, ASCT, CPC
Provider Relations Representative
Posted in Legislative & Political Issues | Leave a comment